Common Myths About Taking Out a Building Warranty


There can be lots of jargon and confusing language used in the construction industry which can be challenging for those new to the sector, first-time self-builders and also those wanting to buy a property. Here, we clear up some of the common myths that surround building warranties.

Myth 1: A building warranty is only needed for new builds

The truth: While all new build properties do require a building warranty in order to be mortgageable, they are not the only type of building that need this kind of insurance cover. If a structural renovation is carried out on an existing property, or a conversion done e.g. a barn conversion or turning a commercial property into a residential one, these projects also need to have a structural warranty in place before they can be sold.

Myth 2: Good construction firms and contractors don’t need a building warranty

The truth: The logic behind the myth hinges on the idea that construction firms, builder and developers who know what they are doing and use good quality materials won’t produce a building with serious defects, therefore this kind of insurance cover isn’t needed. While it may be unlikely that experienced builders and developers will carry out a project that ends up with serious structural issues, the building warranty is still needed in order for the property to be mortgaged, and to protect the new homeowner, as well as whoever built the home, just in case.

Myth 3: Developers only take out a building warranty if they have something to hide

The truth: This myth stems from the thinking that some developers and builders might cut corners during the design or construction and use a building warranty to essentially wash their hands of the project. However, all construction projects need to pass standard inspections before they are signed off as complete, so it’s usually the case that major issues are spotted by or before this stage, and resolved at this point. If defects do come to light during the first couple of years after the building’s completion, usually the builder or developer themselves will be responsible for remedying this, so it’s not in their best interests to cut corners during the design and build process.

If you want to know more about what is and isn’t covered by a building warranty, you can contact our team to discuss your construction insurance requirements.

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Advantage Home Construction Insurance (AHCI) provides structural defects insurance – operating nationally with offices in Warrington, London and Birmingham – offering development-related insurances and a service designed to give customers peace of mind.

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