Why You Might Need Sewer Bonds Insurance


Sewer bonds insurance might not be the most glamourous sounding of policies, but it’s an essential component of a new build development. Usually grouped together with any new roads or sections of roads being built for the development project, road and sewer bonds insurance is needed in order for responsibility of these things to be passed over to the local authority and relevant water company upon completion of the project.

Sewer bonds insurance is a type of policy that covers the developer’s obligations for ensuring the sewers and roads built by them are up to a certain standard, required by the local authority and water company that will later adopt them. The insurance ensures that if the work done is found not to meet the required levels, there is money available for the work to be completed so that it does meet the necessary standards, and the local authority and water company are therefore not out of pocket. The ongoing maintenance of the roads and sewers is then no longer the responsibility of the developer, once they have successfully been handed over and the work done has been signed off.

As a developer, it’s your responsibility to ensure that appropriate roads and sewer bonds insurance is in place before applying to the local authority and water company for adoption to occur. They won’t enter into an adoption agreement with you without this kind of policy being held, as it protects them (and the public purse) from the risk of substandard work.

Sewer bonds insurance can be complex and is a specialist area of construction warranties, so it’s important for developers to use a provider that is experienced in this particular part of the project process. We’re ideally placed to provide you with the cover that your project needs. Get in touch to find out more.

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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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