A new build warranty is essential for new property developments, but there can be some confusion about when a policy should be purchased to give the right level of cover, and in the most cost-effective way. We take a look at various scenarios.
Taking out a new build warranty before the project starts
In an ideal world, taking out a new build warranty before construction even begins is usually the best and most cost effective way to do so. It means that the build can be properly assessed at all of its key stages, so the risks of unseen structural defects being present are smaller, and this is usually reflected in the cost of the policy, when compared to the other kinds of scenario.
Taking out a new build warranty mid-development
There are a number of different reasons why a new build warranty might not be taken out until the project is partway through. The most common reason why this could be the case is when the project is taken over by a different developer after the build has already started. If the original project stalled and needed new investment to get it over the line, it might be that the original developer didn’t take out a new build warranty themselves, so this then falls to the new developer to do so.
As the build is already part-completed, it can mean that there are some elements of the building that can’t be assessed properly because the work is now hidden, so that increases the insurance risk and can mean that the policy costs a little more.
Taking out a new build warranty after project completion
In a similar way, sometimes a developer might come to a project late in the day once the build is practically completed. This type of cover is known as a retrospective warranty and will mean that the property will need a full structural survey to be done before issue. As any structural problems will most likely be hidden at this stage, the risks for the insurance provider are higher, so it’s usual for this type of new build warranty to be the most costly to purchase.
Whatever stage your new build project is at, we can provide the right warranty for your circumstances. Get in touch to get a free quote.