Why housing development companies need insurance
Housing development companies often have multiple different projects on the go at once, which means that structural defects insurance is an absolute must. Structural defects insurance protects the company from any future structural failures, as it covers the cost of the damage caused.
Peace of mind
Taking out insurance as a housing development company means that the entirety of the company can have peace of mind when carrying out projects. Structural defects aren’t visible right away, meaning that problems can take months or even years to visibly manifest – structural defects insurance gives the company 10 or 12 years of protection, meaning you can breathe easy. Should any defects occur to the structure of the building, any replacements or damage is covered by your insurance.
It repairs a problem before it happens
Structural defects insurance not only covers damage that has already occurred but also covers any developing defects that may lead to repairs and replacements in the future. In this way, insurance fixes problems before they have the chance to worsen for housing development companies.
There’s no need to prove negligence
As a housing development company, client satisfaction is crucial. Having structural defects insurance means that negligence doesn’t have to be proven and the blame doesn’t fall at anybody’s feet – all that needs to be done is the existence of the defect has to be proven. It’s a simple as that – meaning the peace of mind of the rest of your clients remains intact.
It’s essential when selling
When selling off houses, having structural defects insurance in place is normally a requirement for lenders, should any of your clients require loans. Generally, the more properties with structural defects insurance, the more potential buyers – increasing the popularity of your housing development company.
Provides transferable cover
Housing development companies can easily transfer the cover over to any buyers – this means that any defects that occur in the future are still covered, no matter how many different tenants there are. As long as it’s within the 10 or 12 year period, claims can still be made.
It offers more protection than collateral warranty
Collateral warranty requires that the person to blame is identified before any further action can be taken. This is just one example of the limitations that are present, when compared with structural defects insurance. Housing development companies should consider taking out structural defects insurance as opposed to collateral warranties, as it is both an easier and less stressful process for all involved.
If you want to get in touch with us then you can click here or you can fill in the form below and we’ll get back to you.