Structural Warranty - recommendations

[Dave and Helen]

Hi,

 

We're about to kick off our self build project, 5 years in the planning, patience is apparently a virtue. 

 

Our plot is just outside Melbourne, Derbyshire and I'm interested in anyones recommendations on a structural warranty provider. 

 

Many thanks

 

Dave C

[miike]

I applied for quotes from LABC, Self-Build Zone and Protek. 

LABC - £13.5k inc audit fees

SBZ - £7.5k inc audit fees

Protek - No quote received after 2 weeks

 

For me, the warranty is just a piece of paper that lets me either get a mortgage or sell the house in the future, so I went with whichever company could provide it the cheapest. 

[nod]

CMLC LTD 

 

420 m2 

£1500 All in 

[miike]

2 hours ago, nod said:

CMLC LTD 

 

420 m2 

£1500 All in 

 

That's a very good price but I don't see them listed as one of the companies that Natwest would accept a warranty from - https://www.intermediary.natwest.com/intermediary-solutions/new-build-hub.html#structural

Not sure if it's different with other banks. 

[Conor]

Lots of different banks have different rules. Some want a fully backed warranty, others a architects certificate, others nothing. Virgin and BOI didn't ask for anything. And a big chunk of others don't ask for anything after 2 years after completion. Just bear that in mind before forking out several £k. 

[Kelvin]

I’ve just checked my documentation and they say Natwest accepts their warranties but this list changes. This is the link the documentation refers to. I’d call

Natwest and ask or call Jeremy at CMLC
 

https://lendershandbook.ukfinance.org.uk/lenders-handbook/

[nod]

It’s unlikely that any SW will ever pay out 

We used Protec for our first build 

Each visit lasted about 10 minutes 

Even the final inspection Where he didn’t walk around the outside of the house Still only took ten minutes 

We new we would sell 

This time we have no intention of selling But there’s no such think of a forever home

Find something that suits you and your budget 

You can also get one retrospectively at about double the cost 

[Kelvin]

People keep saying this but I know of three examples where they have paid out, two on the same house (different owners) 

[Dave and Helen]

Many thanks for the replies and suggestions, although from what's been said, it doesn't sound like a Structural Warranty is worth the paper it's written on.

We're unlikely to want a mortgage to cover the cost of the build, but you never know and we may not be living there forever so it makes sense to obtain a structural warranty to cover the possible eventuality.

So this seems like a paper exercise to me, potentially a costly one.

 

Do we need an SW, or would an architect's certificate suffice? I'll speak to our architect and see what they have to say. 

 

 

 

[Canski]

I’m using compariquo.

[CalvinHobbes]

On 19/03/2023 at 10:10, Dave and Helen said:

Many thanks for the replies and suggestions, although from what's been said, it doesn't sound like a Structural Warranty is worth the paper it's written on.

We're unlikely to want a mortgage to cover the cost of the build, but you never know and we may not be living there forever so it makes sense to obtain a structural warranty to cover the possible eventuality.

So this seems like a paper exercise to me, potentially a costly one.

 

Do we need an SW, or would an architect's certificate suffice? I'll speak to our architect and see what they have to say. 

 

 

 

Just wondering, did you ask your architect? We have a quote for CMLC Ltd for 2k and I am wondering how much the architects charge for a cert and if it's as good? Also I have a notion houses started before the end of 2022 - even if demolishing don't need warranty by law but those who start 2023 are obliged to have a warranty. Did I dream that?

[Temp]

There is a big difference between a warranty and an architects certificate. An architect certificate only lasts for a period of 6 years and  only covers you against defects in design not workmanship or materials. 

 

However it's not clear all warranties cover workmanship either. I recall someone had an issue with their drains blocking regularly and the warranty claimed they worked fine when unblocked so weren't covered.

 

 

[Kelvin]

On 19/03/2023 at 10:10, Dave and Helen said:

Many thanks for the replies and suggestions, although from what's been said, it doesn't sound like a Structural Warranty is worth the paper it's written on.

We're unlikely to want a mortgage to cover the cost of the build, but you never know and we may not be living there forever so it makes sense to obtain a structural warranty to cover the possible eventuality.

So this seems like a paper exercise to me, potentially a costly one.

 

Do we need an SW, or would an architect's certificate suffice? I'll speak to our architect and see what they have to say. 

 

 

 

You say that but as I said I know people who have successfully claimed on them. If you don’t need the warranty for a mortgage or you don’t think you’ll sell within 10 years and you are confident in every stage of the build you can choose not bother. 

[DrewG]

Like Dave and Helen I'm currently trying to choose a Struct Warrenty Provider. Have had prices from Self Build-Zone £4.6 and Protek £2.2k and awaiting on Global Warrenties (apparently they have done quite a few Nudura icf houses which is what I'm going to be building with. Building Control Proces so far between £1.5 and £2.3k...it's all adding up!!!

[Dave and Helen]

These additional costs certainly mount up! I also can't understand how the quoted costs for a structural warranty can vary so wildly. 

Were you able to decide on a final structural warranty provider? If you have, other than cost, what was the deciding factor? 

 

 

[MJamesW]

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.  

[Dave and Helen]

On 18/04/2023 at 16:31, MJamesW said:

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.  

We recently received a quote back from CMLC, a company mentioned a lot on this forum. Their quote started by stating this was a Professional Consultant Certificate that lasted 10 years. 

 

Are you saying I shouldn't take this further?

 

Kind regards

Dave C

[N-New Build]

A Professional Consultant Certificate is backed by Professional Indemnity Insurance Policy, Professional Indemnity Insurance claims can only be made as a result of proving negligence, which is very difficult to prove and often result in expensive legal fees, this is why so many lenders do not accept a PCC, on the basis that they give neither the mortgage or the mortgagee real protection, my understanding is also that PCC's are also not FCA regulated. @MJamesW is correct, there are companies dressing up a PCC as a 10 Year Warranty, which it is not and this shouldn't be allowed.  There are lots of companies that can provide  a Structural Warranty quotation, such as Self Build Zone, Protek, Build Warranty, backed by "A Rated Insurers" that are regulated and have lender approval, maybe also take a look at the reviews online to get a good idea of who you are dealing with before committing the ££s

[MJamesW]

On 23/04/2023 at 21:21, Dave and Helen said:

We recently received a quote back from CMLC, a company mentioned a lot on this forum. Their quote started by stating this was a Professional Consultant Certificate that lasted 10 years. 

 

Are you saying I shouldn't take this further?

 

Kind regards

Dave C

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 

[MJamesW]

On 24/04/2023 at 11:59, N-New Build said:

A Professional Consultant Certificate is backed by Professional Indemnity Insurance Policy, Professional Indemnity Insurance claims can only be made as a result of proving negligence, which is very difficult to prove and often result in expensive legal fees, this is why so many lenders do not accept a PCC, on the basis that they give neither the mortgage or the mortgagee real protection, my understanding is also that PCC's are also not FCA regulated. @MJamesW is correct, there are companies dressing up a PCC as a 10 Year Warranty, which it is not and this shouldn't be allowed.  There are lots of companies that can provide  a Structural Warranty quotation, such as Self Build Zone, Protek, Build Warranty, backed by "A Rated Insurers" that are regulated and have lender approval, maybe also take a look at the reviews online to get a good idea of who you are dealing with before committing the ££s

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. 

[Drellingore]

When would y'all suggest is the best point in the process to look into and secure a warranty? We've got funds that'll cover the start of the build, but will likely need a self-build mortgage to finish it. We've got one scheme awaiting a planning committee hearing, and another that we've just appointed an architectural practice to help us with.

 

Presumably at some point before trying to get lending, and after RIBA Stage 2? What do warranty providers need to see in order to provide a quote?

[Blooda]

We sorted ours out after Building Reg's approval, a couple of months before starting [Jan-20].  We used our local council BC.

We started our self build mortgage application when we started,  Took a couple of months to sort out. 

Not sure what we sent them for the application, but by that time we would have full set of approved drawings / spec. 

 

 

[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   

[Conor]

Just a reminder to those new viewers to this thread that some UK lenders may not require a warranty or such like. Virgin loaned to us on basis that the build was architect designed and supervised - but did not ask for documentation. Only thing requested was evidence that roof system was guaranteed as it was non standard. Ifc build with basement. Home insurance via LV, again, no issues there. 

 

Don't take that as advice, just an example of how it can be done if just getting a mortgage is your sole aim. Different issue if we aim to sell...

Edited May 17, 2023 by Conor

[N-New Build]

5 hours ago, Conor said:

thing requested was evidence that roof system was guaranteed as it was non standard. Ifc build with basement. Home insurance via LV, again, no issues there. 

 

That's great if you do not require a warranty now, or feel it is not necessary, but what if you re-mortgage later on or decide to sell the property and the new purchasers lender requires a warranty?