The difference between a structural warranty provider and broker.

There is a big difference between a structural warranty provider and a structural warranty broker.

What is a Structural Warranty Provider?

A warranty provider is a insurance operation that has been specifically approved for mortgage lending purposes by either UK Finance or the Building Societies Association.  The provider will be listed in the Lenders handbook (UK Finance) or Mortgage Instructions (Building Societies Association).

What is a Warranty Broker?

A broker is an intermediary that provides advice on the structural warranty products available in the market. Many brokers give the impression they are structural warranty providers, but in fact they are not. A broker usually charges a fee or commission for arranging cover with a structural warranty provider which can add a layer of cost.  

Long term security

It is important to choose a structural warranty provider that is authorised to provide insurance in the UK. They should also subscribe to the Financial Services Compensation Scheme (FSCS). In the very unlikely event of the insurers demise, the FSCS offers the best outcome for the consumer who’s home is being insured. Using an unregulated overseas insurer does not provide the same level of security.