A Guide to Retrospective & Replacement Building Warranty Cover

Why do I need retrospective cover?

A Retrospective Building Warranty is essential if you intend to Sell or Refinance a property that has been built in the last 10 years and does not have a recognised 10 year structural warranty in place.

Lenders will not agree to provide funds without a completed housing warranty in place that covers the structure of the property or excludes the owner/lender from potential future liability for structural issues. Without a warranty it will be almost impossible for a buyer to obtain a mortgage.

The Warranty can be arranged by either the owner or purchaser of the property through Granite Building Warranties.

How long is the policy?

Cover is provided for the balance of the 10 year period from the date of Building Regulation Sign Off.

Is the policy transferable?

Retrospective structural defects warranties are completely transferrable to any new owners of the property over a 10-year period, as the certificate is attached to the home rather than the person who takes out the construction insurance.

What does the policy cover?

The cover protects the property in the event of a structural defect or latent defect as a result of a defect in the design, workmanship or construction of the home.

The process and timing

Prior to the insurance being issued, a nonintrusive structural survey will be undertaken by the insurance company.

The surveyor will assess the design and physical condition of the building, to ensure its structural integrity and compliance with the warranty requirements. They will also require copies of all the relevant certificates (Building Regulation Sign Off, EPC, Gas and Electric certificates etc). If the survey raises any problems, then minor remedial works may be required prior to cover being offered, (confirmed usually by photographs) or existing issues can be excluded from the policy.

A Certificate of Insurance will then be issued covering the balance of the 10-year period from completion of the build.

From instruction to proceed the process can take between 5 – 15 working days.

Can I replace an existing invalid warranty cover if necessary?

A replacement or retrospective warranty can also be used to replace a warranty that has become invalid due, for example, to the financial failure of the original insurer. If this should happen and you are an owner of a property in this situation, it will be a requirement of your mortgage lender that the invalid warranty must be replaced with another structural warranty policy for the remainder of the term (please check with your mortgage company as a matter of urgency). In this situation Granite can assist with the new policy and the process will be the same as above.

Granite Building Warranties are Specialists within the Retrospective and Replacement Warranty Market, dealing with these types of policies on a regular basis and we will be happy to help you with any questions you may have. Contact us today for your no-obligation Building Warranty quote.

Please contact Ed or Kelly on Tel: 01284 365345 or email ed@granitebw.co.uk / kelly@granitebw.co.uk.