Do you have a project that has been completed but you don’t have an Insurance Backed Guarantee in place from the builder?
Not only is this a large risk to go uninsured for the short term, but it can also be an issue when you come to sell. As an example, if you have just made a big outlay on a new roof for a block of flats, then you may not be covered if something goes wrong and you might find that any potential buyers are put off.
A good example of this is a client we recently had requested a 10 – 12-year warranty for a new roof they had installed 12 months ago costing £70,000. The client was led to believe that the contractor would be arranging the Insurance Backed Guarantee, but after months of going back and forth the contractor didn’t arrange it.
In this instance the new roof was for a large block of flats. The Roofers Public Liability Insurance would not cover for poor workmanship years down the line, but an Insurance Backed Guarantee would.
How Construction Insure helped
What we did at Construction Insure was use a good A rated insurance company to put this guarantee in place. Surveys were done and eventually all was cleared for the insurance to be rated and a policy to be created for the insured.
Many brokers would not know where to place this and if they did, they probably wouldn’t get the premium reductions we do, this is due to our relationships with insurers that have been built of many years.
The difficulty is that insurers ideally need to make checks and audit the property. This is normally done during the build, so the insurers can be as close to 100% sure that there have not been any faults. In the event the works have been complete this is very hard to do, but not impossible to cover.
Construction Insure specialist brokers can find the package that suits you with access to all insurers that are accepted by the Council of Mortgage Lenders.