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Build to Rent is a sector that is growing at an ever faster pace, which may mean that you are now on the lookout for structural warranty insurance for your very own build to rent development.
At One Guarantee, we offer policies that cover property owners against the risk of unexpected or inherent structural defects from practical completion for up to 10 or 12 years. All our policies are freely assignable, meaning any future owner will be adequately protected for the duration of the policy.
If you would like more information about One Guarantee’s Build to Rent Warranty, call us on 01603 218288 or request a Build to Rent Warranty quotation online.
How can a Build to Rent Warranty Benefit my Tenants?
If you’re building to rent, a structural warranty can make your asset more attractive on the market while also providing a number of benefits to the occupiers of your property.
Not only does our policy cover damage that might result from an unforeseen structural defect, but it also provides cover for reasonable additional costs and expenses associated with removal, storage and alternative accommodation while the property is uninhabitable.
How does a Build to Rent Warranty Work?
Our warranty for Build to Rent developers runs for a period of up to 12 years from the date of practical completion. It is split into two key parts:
1. Defects Insurance Period (practical completion to year 2)
It is the builder’s responsibility to address any structural defects in the two years following practical completion of the build. If the builder refuses to rectify these defects, our Build to Rent Warranty will step in.
2. Structural Insurance Period (years 3 to 10/12)
Full risk transfer is provided in years 3 to 10/12. It means that any structural defects that occur within this period are covered by our policy.
Additional Benefits:
- AA-rated insurer
- Contactor insolvency cover (subject to approval)
- Cover for part or completed projects
- Contaminated land cover
- Cover to comply with Building Regulations
- Alternative accommodation, professional fees, debris removal and additional costs
- Instalment facilities available
- Machinery Inherent Defects Insurance available
Build to Rent Warranty FAQs
- What is Build to Rent?
Build to Rent is a term used to describe properties that have been specifically built for private rental accommodation. These properties are usually apartment blocks, with most (or all) of the apartments owned by one landlord or management company.
Build to Rent developments are often aimed at people who are looking for longer-term leases with extra amenities, such as an in-house gym, gardens and even cafes.
Due to growing house prices, building to rent is becoming more popular among developers as there is strong demand for good rental properties.
- Can I obtain a policy if only part of my development is for private rent?
Build to rent developers will still be able to benefit from our building warranty insurance should you wish to retain only part of the development for private rental purposes. If, for example, the remaining units are to be sold on the open market, One Guarantee can issue a policy for new homes to cover the alternative use. The units retained for private rent will be covered under our dedicated Build to Rent policy.
- Can you arrange Machinery Inherent Defects Insurance?
Some of the communal elements of the property may not be covered by our Build to Rent policy. These can include things such as lifts and escalators, electrical distribution systems and air conditioning units. One Guarantee is able to provide Build to Rent developers in need of this kind of cover with Machinery Inherent Defects Insurance (MIDI). It is designed to address these areas of a build and complements our structural warranty insurance. More about MIDI.
- Is registration applicable under a Build to Rent Warranty?
Registration with One Guarantee must be maintained by the builder throughout the defects liability period of the policy and contractor insolvency (if applicable). Registration must be renewed annually and maintained. The defects liability period represents the first two years following the practical completion of the build. Registration is not required to be maintained throughout the structural insurance period of the policy.
If you are a Build to Rent developer and would like more information about One Guarantee’s Build to Rent Warranty, please call us on 01603 218288 or click here for a quotation.