When investing in a new property development, ensuring its long-term integrity is a top priority for developers, contractors, and property owners. A structural defects warranty provides essential coverage against specific risks, offering financial and practical security. However, understanding what is and isn’t covered by this warranty is crucial for managing expectations and ensuring comprehensive protection.

What Is a Structural Defects Warranty?

A structural defects warranty, also known as structural defects insurance, is a type of insurance policy designed to cover significant defects in the structural elements of a building. Lasting 10 or 12 years, this warranty safeguards against costly repairs resulting from structural failures that could compromise the safety or integrity of the property.

What Is Covered?

A Structural Defect Warranty generally covers:

• Structural Components: Damage or failure involving load-bearing elements such as walls, roofs, floors, and foundations.

• Drainage and Sewage Systems: Issues impacting the structural integrity of drainage and sewage systems within the property.

• Weatherproofing: Defects that result in water ingress, causing damage to structural elements.

• Foundation Issues: Cracks, subsidence, or structural movement that compromise the stability of the building.

The warranty provides peace of mind to developers and property owners by ensuring any major structural issues will be addressed without financial burden.

What Isn’t Covered?

While a structural defects warranty offers comprehensive protection, it does have limitations. Common exclusions include:

• Non-Structural Defects: Cosmetic issues such as minor cracks, scratches, or general wear and tear.

• Poor Maintenance: Damage resulting from neglect or failure to maintain the property.

• Pre-Existing Defects: Issues that existed before the warranty was issued.

• Deliberate Damage: Defects caused intentionally or through misuse of the property.

• Natural Disasters: Events such as earthquakes or floods, unless specifically included in the policy.

Understanding these exclusions helps ensure that all stakeholders have a clear picture of the warranty’s scope and can plan accordingly.

Why Is It Important to Know What’s Covered?

Knowing the scope of a structural defects warranty enables developers and property owners to:

• Ensure Compliance: Meet regulatory requirements for new-build developments.

• Mitigate Risks: Identify potential gaps in coverage and address them proactively.

• Avoid Surprises: Understand the limitations to prevent unexpected costs.

How to Choose the Right Structural Defects Insurance Provider

Selecting the right provider is key to obtaining the best coverage for your project. Here’s what to look for:

• • Proven Expertise: A provider with a strong track record in structural warranties.

  • Tailored Policies: Coverage options that align with your specific project needs.

  • Transparent Terms: Clear explanations of inclusions and exclusions.

  • Responsive Support: A provider who can guide you through claims and address any questions promptly.
  • Thorough Technical Audit to ensure potential defects don’t become a claim.

Work with a Trusted Partner

At Advantage Home Construction Insurance (AHCI), we specialise in providing structural defects insurance tailored to the needs of developers, contractors, and property owners. Our team understands the unique challenges of property development and ensures that your project has the coverage it needs.

Take the First Step

A structural defects warranty is an investment in the long-term success of your development. By understanding what is and isn’t covered, you can make informed decisions and protect your project from unforeseen issues.

Contact AHCI today to learn more about our structural defects warranty options and ensure your project’s future is secure.