MJamesW

Before you start the build or you will incur significant loading on the premium as it makes insurers nervous not having inspected the build all the way through. The best advice I got was from speaking to two independent brokers. I spoke to Build Secure who got me 4 prices for a warranty and one for a PCC which is what I went for on my last project based on cost but have used ICW and BZ, I also spoke to L and B who were vey good as well but they use the same providers so was doubling up on what I already had. CMLC tried to sell me a 10 year PCC as a Structural Warranty which I was less than happy about. No RIBA stage 2 needed just plans and an application form that they went through it was all relatively painless and informative, even given my background in reinsurance

Correct they are not regulated by the FCA as they are not an insurance policy as such. A majority of the lending market does accept PCC's ( HSBC are the only high street lender who dont ,but only have less than 2%-3% of the new home lending market) and Lloyds group who have the largest % mortgage market do accept them. I personally wouldn't worry too much on a build about having a PCC if your main concern is obtaining a lending facility, but if your concern is having the right protection in place in the event of a claim then you should get a full Structural Warranty.

I would seriously question how they can cover 10 years with 6 year run off cover on PI. I would ask the question and ask for proof that they can cover the 10 years. They will of given you a copy of their PI cover when you paid for the PCC

Make sure its a Structural Warranty and not people selling 10 year Professional Consultant Certificates ( previously Architect Certificates) and advertising them as Structural Warranty. PCC's are not regulated and are open to mis selling. There isn't a Professional Indemnity insurer on the market offering 10 years run off cover so there is no PCC really going to be for 10 years its a load of rubbish. I worked for a direct insurer for Structural Insurance many years ago and there are plenty of successful claims when the policy is regualted by the FCA it will be pay out on genuine claims under the policy document Go to Self Build Zone they are your best bet price wise I would guess or use a broker that does both PCC and a full market search for Structural Warranty and you'll get some decent unbiased advice There are some companies mentioned above who are not selling what they say and claiming a 10 year PCC does the same job when it doesnt at all.

Its an interesting topic 10 Years PCC's, the reason they are normally limited to 6 years is due to 'run off ' cover on the consultants PI cover. Its a very grey area and one that certainly lenders aren't fully up to speed on. There are providers offering 10 years PCC's as it then makes it a very solid and cheap alternative to a warranty, but they have no way of covering the 10 years. Any Architect or Surveyor will tell you that 6 Years is the maximum PI insurers offer. Its not a regulated policy a PCC and therefore we should all be cautious about what we are getting as there is no recourse once we have paid our money. I would personally ask for confirmation their PI provider is willing to support a 10 year PCC.

Your architect might struggle if he hasn't done your inspections, he might be a little nervous about putting it on his PI cover. Get a quote quote for both Structural Warranty retrospective and PCC retrospective and then work out which best fits your budget I ve used the below they gave me quotes for both and were really good but there will be others www.buildsecureinsurance.co.uk

Retrospective Professional Consultant Certificate. UK Finance website should give you more details about PCC's. They are the new name for Architect Certificates

From my experience genuine claims that fall under the remit of the policy ( check policy document) should be paid but as ever the insurance company never make it easy and the claims process can be made arduous to say the least. If you are having problems with a claim and hopefully its a regulated policy ( there is some unregulated cover out there) then complain to Financial Ombudsman Service after informing the insurer of your intentions. Don't forget nearly all policies have a 2 year Developer Liability Period where responsibility lies with the builder/contractor unless they have gone into liquidation.

PCC stands for Professional Consultants Certificate and is basically the same as the old Architect Cert but when UK Finance took over it had the name change. Most High Street Lenders so accept them I don't think HSBC do but the rest to and certainly the Lloyds group does which is the biggest player in the new home mortgage market The cheapest way is to take out the warranty or PCC before you start so inspections can be carried out which reduces the risk for the insurer. There are High Street lenders that do not accept retrospective cover such as TSB. In my opinion it is down to the individuals attitude to risk and situation and what your lender requires. Also if you are selling the property then you will need a warranty from the start for the potential buyer to get a 'decision in principle' from the lender Rules are more or less the same in Scotland with warranties, there is a slight difference with the SER they dont need structural reports for the underwriting

Halifax accept Professional Consultants Certificate and most Structural Warranty providers who have or are a member of a Consumer Code and they have looked at the policy and approved it. A Council Completion Cert ( Building Control Cert) Is never enough for any lender. It happens quite a lot on the final drawdown. You can still get either option at any stage of the build but it is reflected in the price. Make sure its regulated if you go for the Warranty there is some awful cover out there that's cheap as its based in the Caribbean etc.

@Hilldes dont forget this is an FCA regulated product, you should write to the insurer informing them that you are making a formal complaint and state on what grounds you are making the complaint. The insurer would then have to reply within a certain period of time. If you still aren't happy you can then escalate your claim to the Financial Ombudsman Service. Could save you a lot of money. I am assuming this is a regulated policy as there was one particular company selling unregulated cover which should not be allowed

Most insurers are using the BCIS calculator these days, due to worries regarding the rate of construction inflation and underinsurance . This is in my mind a good thing as it aligns with lender valuation and you dont have problems with under or over insurance you have documented evidence . It has absolutely nothing to do with larger premiums and commissions. We can all build a house cheaper than the BCIS report suggests, but the insurance as stated does cover demolition and site clearance. The insurance company would also have to employ a contractor who would charge full value on the build What is actually more common is underinsurance as it makes the premium look more competitively priced to those offering BCIS valuations. This will cause problems for lenders and vigilant lawyers Always look for professional advice its a complex product that should not be bought on price

Its always advisable to get a full list of information the insurer will need before you pay them. Some of this will be financial some will be regarding materials and guarantee's. Its easy for a provider to take your money before they fully explain what hoops you have to jump through at the end so get it in writing . I ve seen house purchases fall through due to this. Generally if one provider is asking for less than all the others then I would be flagging it with them before spending any money. Warranty surveyors may also flag potential issues on their reports that either need more clarification or information so read them carefully

Use a broker that does both Warranty and PCC and can offer fully independent advice. Also there are some very cheap Structural Warranty's out there as they are offshore policies that are not regulated by the FCA and totally worthless for lenders or claims, so make sure you dont just go for the cheapest without doing any due diligence. If its too good to be true............................

Retrospective warranty's are relatively easy to obtain if you avoid NHBC and LABC, but they do come with a loaded premium as the insurer has not inspected the property. Most lenders do accept them the only issues weve ever heard of is with the TSB, all the other High Street Lenders are fine with them. You do have the option of a retro PCC as a more cost effective option