builders working on a renovation

What Is Structural Warranty Insurance?

When a new house is built, is is usual to arrange an insurance warranty to cover any building defects in the new works. In fact, if you have taken out a mortgage with a bank or building society, this will probably be a condition of the loan.

This type of insurance policy is known as a "Structural Warranty."

Typical examples of where a structural warranty is bought is for:

Most of the insurance premium that you pay is to pay the cost of a series of inspections by surveyors to ensure that the work is being completed to an acceptable quality. The policy will last for up to 10 years and should defects be found in the building, the insurance policy will pay for these to be put right.

How much does structural warranty insurance cost?

As with any type of insurance, it is best to shop around and obtain various quotations. However, to give an extremely rough idea, expect to pay around 1% to 1.5% of the project cost. For example, a house costing £200,000 to build may cost between £2000 to £3000 for a structural warranty insurance policy.

We recommend that you buy the policy as soon as works start. The reason for this is that as all the work is still fully exposed, the surveyor can see everything which is being done.

The cover date will be from completion, so there is no advantage in delaying buying your policy.