Guide to Self-Build Warranties

In October 2022 Build Warranty Group published a guide explaining structural warranties for people building their own homes. It described a self-build warranty, also called latent defects insurance, as protection against defects in design, workmanship or materials that appear after the structure is finished. The provider checks the plans in a technical audit, inspects at stages during construction and on completion, and then issues a ten-year policy.

The firm put the typical cost at between £1,000 and £4,000, with an average of around £2,000, depending on the size of the building, its frame type and the build cost. That figure covers the full ten-year premium, including the site audit visits. The guide stressed that, unlike ordinary home insurance, the warranty is aimed at structural problems.

Cover usually has two phases. The first two years, starting from the completion certificate, are a defects period in which the contractor is responsible for putting problems right. From years three to ten, the insurer takes over the cost of structural defects, typically affecting foundations, load-bearing walls, floors, staircases, roof structure and coverings, lintels, chimneys and flues. Policies may also include contaminated land costs where a statutory notice requires them, repairs where non-compliance with building regulations endangers occupants, and protection for deposits if a contractor fails during the build.

A warranty is not a legal requirement for self-builders, but the guide said most lenders insist on one before advancing a loan, and it can also help when the home is later sold. An architect's certificate is a cheaper alternative, though it normally runs for around six years and is not backed by an insurer.

The firm advised arranging cover as early as possible, ideally when the project is first being planned, so that the cost can be budgeted and the warranty provider can see the whole build process.

Source: Build Warranty Group, original article (3 October 2022)