Top 5 Benefits of a New Build Warranty
Posted by Build-Zone on 23rd August 2024 -
New build warranties have become an essential part of the buying and selling process; whether you’re a developer looking to assure potential buyers or a homebuyer seeking to protect your investment, a new build warranty offers reassurance and financial security.
For sellers, a warranty enhances the property’s marketability and demonstrates a commitment to quality and customer satisfaction. For buyers, it provides a safety net against unforeseen defects that may arise, resulting in costly repairs. This blog will explore the top five benefits of new-build warranties and why they are important for both parties.
A new build or structural warranty (latent or inherent defects insurance) generally lasts 10-12 years after practical completion. These warranties are available for various construction types, including residential, commercial, mixed-use, social housing, student accommodation, and self and custom-build projects.
- Comprehensive Structural Protection
One of the primary advantages of a new build warranty is the comprehensive structural protection it offers. A warranty covers major structural defects that might arise within a specified period after the completion of your new home (usually ten years post-completion). These defects could include issues with foundations, walls, roofs, and load-bearing elements. This type of insurance protects homeowners (and future owners) against substantial repair costs that could otherwise be financially devastating.
- Enhanced Marketability and Value
Having a structural warranty in place on a new build significantly enhances your property’s marketability and value. Potential buyers are more likely to consider purchasing a home with a warranty, as it gives them a sense of security and trust. The assurance that any significant structural issues will be covered can make your property more attractive in a competitive housing market, potentially leading to a quicker sale and better price.
- Financial Security and Peace of Mind
Building a new home is a significant investment; unforeseen defects can lead to unexpected costs. With a Build-Zone warranty, homeowners are protected against these unexpected expenses. This financial security allows homeowners to enjoy their new property without worrying about potential repair costs caused by a structural defect in the design, workmanship or materials.
- Underwritten by ‘A’ Rated Global Insurers
With a range of warranty providers in the market, how do you know who to choose? It’s simple – always opt for an ‘A’ Rated provider, or you risk choosing an unstable company that could leave you uninsured.
Choosing an ‘A’ Rated insurance provider such as Build-Zone will ensure you won’t be left uninsured if they exit the market or breach your mortgage conditions, leaving you responsible for structural defect costs.
- Compliance with Mortgage Lender Requirements
When selling a new home, including newly converted homes under ten years old, on the open market, a structural warranty insurance policy that meets the mortgage lender’s requirements is necessary. The warranty provider must be approved by UK lenders to facilitate the property’s sale upon completion.
While a new home warranty is not legally required, most mortgage lenders mandate this coverage before considering loans for potential homeowners. Consequently, developers must acquire a New Home Warranty to secure mortgage approval for buyers.
In conclusion, a new build warranty offers numerous benefits that protect homeowners and enhance their investment. From comprehensive structural protection and enhanced marketability to financial security, professional issue resolution, and compliance with mortgage lender requirements, a structural warranty is a wise investment for any new homeowner, providing peace of mind and safeguarding against unforeseen issues.
Key Components of Build-Zone Structural Warranty Policies
- 10-year residential development structural warranty insurance policy, backed by financially secure ‘A’ Rated insurers
- No membership or registration fees
- Accepted by the majority of lenders in the UK and an associate of UK Finance
- Fast quotation turnaround
- Quick response from professional, nationwide technical auditing/survey service
- Flexible payment method
- Full risk transfer in years 3-10 of cover
- Cover available for new build, conversion, social housing, build-to-rent, major projects and mixed-use developments.
- Cover as standard for alternative accommodation, additional costs, removal of debris and professional fees.
Build-Zone
Build-Zone is established Structural Warranty provider for any size build/development in the UK and Ireland, including New Home, Self & Custom Build, Commercial, Completed and Social Housing. We are backed by A-rated insurers and UK Finance approved.
