New Home Warranty
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A One Guarantee New Home Warranty provides cover against inherent defects that may occur within the structure of a home. It is aimed specifically at house-builders and developers looking to construct residential housing units to sell on the open market. Our policy is freely assignable, meaning any future homeowner will be adequately protected for a period of up to 12 years following the practical completion of a build.
Purchasing a One Guarantee New Home Warranty will ensure that a smooth, comprehensive and low-risk process is in place for any developer and future home buyer.
Why Is A New Home Warranty Needed?
Most importantly, a new home warranty is needed to insure against structural defects which can often be extremely costly for any new homeowner to put right.
The majority of mortgage lenders will also insist that a recognised structural warranty is in place for each newly built home. Banks and building societies will often not provide mortgages until a new home warranty has been secured by the developer. This is to ensure mortgage lenders’ funds are sufficiently protected if a defect arises, and the new housing unit needs to be either partially or completely rebuilt. Our policy in this scenario would pay for these costs without the need to prove negligence.
New home warranties also make houses far more attractive for developers and future homeowners to sell. They provide the reassurance and peace of mind that cover is in place should the worst happen.
How Does Our New Home Warranty Work?
A One Guarantee new home warranty runs for a period of up to 12 years as standard. Our new home warranty is divided into three important parts:
1. Developer Insolvency Cover (optional and subject to approval)
Cover is offered during the construction phase of the build in the event of insolvency/fraud on the part of the developer. One Guarantee will either pay for the costs to finish the build or refund the deposit* paid by the consumer/purchaser. p>
*Up to 10% of the purchase price subject to a limit of £100,000
2. Defects Insurance Period (practical completion to year 2)
It is the developers responsibility to address any structural defects in the first two years following the practical completion of the build. Redress may be offered to purchasers under the Consumer Code for New Homes for any non-structural related issues.
3. Structural Insurance Period (years 3 to 12)
Full risk transfer is provided in years 3-12, meaning that any structural defects that occur in this period will be covered under our policy. All our warranties are freely assignable for an unlimited number of times throughout the lifetime of the policy.
Additional Benefits of Our New Build Warranty
- 12-year policy as standard
- AA-rated insurer
- Contaminated land cover
- Cover for part or completed projects
- Cover to comply with Building Regulations
- Alternative accommodation, professional fees, debris removal and additional costs
- Additional protection under the Consumer Code for New Homes
- Machinery Inherent Defects Insurance available
- Instalment facilities available (subject to approval)
- What Parts Of The Structure Are Covered Under Your Policy?
During the Structural Insurance Period (years 3 to 12) our new homes warranty will provide cover for defects that occur within the structure of a home. This includes:
- Excavations, foundations and ground floor
- Walls (internal and external)
- Stairs, floors and screeds
- External frames (windows, external doors and roof lights)
- Ceilings and load-bearing parts of floors
- Roof coverage
- Flues and chimneys
- Waterproofing elements of the external envelope
- How Many Inspections Do You Typically Carry Out Per Home?
One Guarantee will undertake a minimum of 5 inspections per housing unit. However, both One Guarantee and insurers reserve the right to increase the number of inspections if required. Below are the standard key stages One Guarantee undertakes as part of the inspection process:
- Inspection 1: Site Preparation/Foundations
- Inspection 2: DPM/Oversite
- Inspection 3: Superstructure
- Inspection 4: Pre-Plaster and Roof Structure
- Inspection 5: Final Inspection/Sign-off
Although the requests for inspection may relate to a particular plot, surveyors will also take the opportunity to inspect any other relevant areas of the site. For more information on our Inspection Process click here.
- What Factors Primarily Affect The Cost Of A New Build Warranty?
There are three main elements that will affect the cost of a warranty:
- The size and complexity of a development: Our warranties cater for single dwellings through to large residential housing estates or mixed-developments. The size and number of developments will ultimately affect the premium.
- Credit rating and financial security: One Guarantee will undertake a number of credit checks to determine whether we require any additional financial protection such as Cross Company Guarantees.
- Developer Rating: We will ask for any previous developer ratings given by other warranty providers as well as any claims history. We will then match this alongside our own rating system, as part of our quotation process.
- What Are Your Financial Limits?
Our financial limits refer to the maximum sum insured value Insurers will cover. These are as follows:
- Single Unit New Development £3,000,000
- Any Continuous Structure £45,000,000
- Any one Development £50,000,000
- Contaminated Land £1,000,000
- Building Control £1,000,000
- What Excesses Are Generally Applied?
- All section £500
- Common Areas £1,000