Structural Warranty Frequently Asked Questions
We have provided answers here to Structural Warranty Frequently Asked Questions that pop up regularly. If there is a question you have that we have not answered below then we would love to hear from you.
Is Protek approved by lenders?
A Structural Warranty is an insurance policy that pays for the cost of rectifying defects in the design, workmanship, materials and components that may have occurred during the construction process. It is often classed as a building defects or latent defects policy.
What is a Defect?
A defect is a failure of the design, workmanship, materials or components to comply with the requirements of the technical manual.
Do you provide cover for insolvency?
Cover for insolvency may be available on some of our New Home Warranty products – please get in touch if you need this.
Is there a defect period?
Our New Home warranty product includes a developer defect period. Other products are available that do not carry a defects period.
Why buy a structural warranty?
Fixing structural defects can be very costly, without a structural warranty policy in place you will invariably be responsible for fixing the problem or pursuing the entity that was negligent, which can be a tricky, expensive and time consuming exercise. A warranty adds saleability to a property for that reason.
A fairly recent court case highlighted some of the problems associated with reliance on Architects Certificates. They are an extension of the Architects professional indemnity cover and as such you will need to be able to prove they were professionally negligent in not spotting the issue that lead to the defect arising. That can be a time consuming and expensive exercise. If the Architect is no longer in practise or fails to renew their cover it can often lead to no protection. For more information: https://www.thenbs.com/knowledge/court-of-appeal-provides-clarity-on-architects-certificates
Do I need to buy both a structural warranty and buildings insurance?
A buildings insurance policy provides cover in the event of fire, subsidence, lightning, explosion, storm damage etc., However, it will specifically exclude damage caused by faulty or unsuitable materials, design or poor workmanship. Which are the key areas of cover afforded by a structural warranty. That is why you should consider purchasing a structural warranty policy as well as buildings insurance.
How long does a structural warranty policy last?
Most structural warranty policies last for 10 years, although commercial and social housing policies are usually 12 years.
Do you cover new builds, conversions, refurbishments and extensions?
Yes, we provide cover on most types of development from single units to main stream apartment developments, Barn Conversions, office to residential regeneration, mixed use , commercial, self-build, custom build, extensions and renovations.
I’m planning a development using sectionalised timber frame is that OK?
Yes that’s fine. We will check the suitability of the design, workmanship, materials and components as part of the technical audit to ensure they meet our technical standards. We can cover other modern methods of construction including modular, insulated concrete formwork, straw bale as well as traditional brick and block. Protek is a Structural Timber Frame Association member.
When do I need to get a structural warranty in place?
The ideal time to get the structural warranty in place is after you have got your building regulation drawings in hand and are considering who to do your building control with. The Protek warranty works with both a local authority building control solution or an Approved Inspector.
What information do you need to know?
We need some basic details regarding the project to be able to offer you a quotation like the size, build cost, location, design etc. and these questions form the basis of our quote process. You can apply for a quotation here. Once you decide to proceed, we need you to provide a copy of the working drawings, calculations and specification to our technical auditor, who will check the design meets with the technical standards.
How long does it take to get a quotation?
On average, it takes the sales team at Protek two days to turn a quotation request around.
How much does a Protek New Home Warranty cost?
It depends on the experience and status of the registering Developer or Builder. Registering (which is free) and organising the structural warranty prior to works starting is always the most cost effective route.
Can I take the policy with me when I move home?
No, the policy specifically covers the property for which is was issued. The person who buys the house from you becomes the new beneficiary under the provision for successor in title.
What is Latent Defects Insurance?
Latent Defects Insurance (LDI) provides cover against the cost of repairing, replacing and/or strengthening an insured property following the discovery of defect in the design, workmanship or materials or components used in the structural works and envelope. The defect usually has to manifest itself during a 10 or 12 year period post completion. It must subsequently cause physical damage to the Premises; or the threat of imminent collapse to the premises, requiring immediate remedial measures for the prevention of an actual collapse. It is often referred to as a Structural Warranty
What is the sum insured?
The sum insured should always be the cost to professionally re-build the property; it has nothing to do with it’s value.
Why do you show the sales value on the certificate of insurance?
This is required by banks, building societies and conveyancers to ensure the certificate has been issued on the correct home.
Do you cover Self-Builds?
Yes we do! Visit our dedicated self build website for more information – https://www.protekselfbuild.co.uk
The property was completed a few years ago – do you do a retrospective structural warranty?
Yes, Protek provide retrospective warranties on part completed and completed properties. More information on the cover and process is available on our completed property page.
How do I go about getting a structural warranty?
Your already in the right place!
- Make an application here
- Receive a written quotation
- Pay the premium and fees as applicable
- Project technical audit process
- Policy issued on satisfactory completion
How long does the process take?
It really depends on the length of time the project is scheduled for. In terms of a retrospective warranty being issued on a completed property these can be fast tracked to provide policy documentation on an average 10 working day turnaround.
What happens if I need to sell the property part completed – can you transfer the structural warranty to the purchaser?
Under FCA regulation in relation to insurance related activities we have a duty to treat all customers fairly. Whatever the reason for the mid build sale, our team will work with you to make the process as cost effective and straightforward as possible for all parties.
Does my Building Control Completion Certificate provide any cover?
No, it is simply a certificate issued by the building control inspecting party to confirm that the property meets the requirements of the Building Regulations with regard to Health and Safety.
As a developer do I have to register with the New Homes Quality Board (NHQB) ?
We have been advised that the NHQB Code is not a mandatory code for developers. It has been setup as an additional code in the sector and as such, other Codes will continue to exist.
Protek is a Code User of the Consumer Code for New Homes. It is a Chartered Trading Standards Institute (CTSI) Fully Approved Code. It has been in operation since 2015 and has no current plans to change this. Any Developers who engage our warranty services are simply required to be members of CCNH if selling properties on the open market to consumers.
There is no registration fee for the Consumer Code for New Homes, the costs involved are simply:
– £10 + VAT per plot fee on registration
– £600 per case if a consumer wants to take a case to the ADR service (provided by CEDR)
– Annual Code renewals per site are free. No fee for developers with no active sites.
– As a Chartered Trading Standards Institute Approved Code, works with the Centre for Effective Dispute Resolution (CEDR), an internationally recognised alternative dispute resolution service [ADR] providing a comparable ADR service as an Ombudsman to consumers – giving your customers peace of mind.
– CCNH is an industry leading Code providing high levels of consumer protection and business support. CCNH is a sector specialist in supporting small and medium sized developers. We provide Code, complaints and customer service advice and guidance to registered developers free of charge.
Do you have a structural warranty frequently asked question that’s not covered here? If so contact us and we will do our best to answer it!