Private Rental Warranty
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One Guarantee is able to offer structural warranty insurance for developments retained for private rental purposes. Our policies cover property owners against the risk of unexpected or inherent defects which may occur within the structure of a build from practical completion up to a period of 10 or 12 years. All our policies are freely assignable, meaning any future owner will be adequately protected throughout the duration of the policy.
How can a Private Rental Warranty Benefit my Tenants?
Not only does a structural warranty make your asset more attractive to sell to future property owners, it also has a number of benefits for the occupiers of your property. Aside from the policy covering any damage that might result from an unforeseen structural defect, our private rental warranty will also provide cover for the reasonable additional costs and expenses that are incurred in respect of removal, storage and alternative accommodation whilst the property is subsequently uninhabitable.
How does the Private Rental Warranty Work?
Our private rental warranty runs for a period of up to 12 years from the date of practical completion. Our policy is split into two important parts (contractor insolvency cover may also be offered, subject to approval):
1. Defects Insurance Period (practical completion to year 2)
It is the builders responsibility to address any structural defects in the first two years following the practical completion of the build. If the builder refuses to rectify these defects, our private rental warranty will step in.
2. Structural Insurance Period (years 3 to 10/12)
Full risk transfer is provided in years 3 to 10/12 meaning that structural defects which occur in this period will be covered under our policy.
Additional Benefits of Our Policy
- 12-year policy as standard
- 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
- No registration/membership fee’s
- Instalment facilities available
- Machinery Inherent Defects Insurance available
- Can I Obtain a Policy if Only Part of my Development is for Private Rent?
You 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 private rental policy.
- Do you Cover Machinery Inherent Defects Insurance?
Some of the communal elements of the property may not be covered by our private rental policy. These can include things such as lifts and escalators, electrical distribution systems and air conditioning units. One Guarantee are able to provide Machinery Inherent Defects Insurance (MIDI) which is designed to address these areas of a build with a policy which will complement our structural warranty insurance. One Guarantee can offer MIDI which is Underwritten by HSB Engineering Insurance. For more information on MIDI, please see our news article.
- Is Registration Applicable Under a Private Rental 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 is free but must be renewed annually. 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.