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The importance of structural insurance
New homeowners are unaware of what structural insurance is and the importance of having this in place. Most believe that buildings insurance protects you against structural damage, but this is not the case!
Surveyors do miss out on small defects which are not always visible and which may pose long-term problems to the structure of residential dwellings. These faults known as latent defects are faults in the property which could not have been discovered upon reasonable inspection before the sales of the property. Many go unnoticed by surveyors when carrying out a typical house inspection. Those that do go unnoticed eventually lead to long term structural damage. To avoid this happening and to reduce the risk of having to pay out large sums of money to cover for the rebuild of a property, builders, those involved in the sale, management and purchase of new builds are required to have structural insurance in place.
So what is Structural Insurance and why is it needed?
Structural insurance or LDI (Latent Defects Insurance) is the means by which a property is secured against the structural or load bearing elements which adversely affects the stability or resistance to damp and water penetration. This could be as a result of a defect in the design, workmanship, material or components of the structure.
The reason why structural insurance is needed is that many mortgage lenders in the UK and Ireland will not advance a mortgage and release the funds for the sale of the house until this insurance is in place. It is not a legal requirement as yet but if you are looking to sell a recently completed development or you are the owner of a new home which doesn’t have this cover in place then be sure to secure your cover with CRL.
CRL has been providing 10 year structural insurance policies since 1999. The majority of our business comes from new developments or retrospective cover on partial or fully built units which are involved in some form of insolvency. Our clients include those directly and indirectly involved in the build, management and sale of properties. We cover new, distressed (insolvent properties), barn conversions, retrospective (part complete and complete builds) and mixed use properties (residential and commercial).
What should I do if I discover a fault with my property?
If you discover a problem which may have an impact on the structure of your property then firstly call in a surveyor. Next, document your findings through surveyor reports and/or images. Contact the builder of the property to see what insurance if any is in place. Your builder should have secured 10 year structural insurance on the property to which you can make a claim. If you find that the builder has not secured structural insurance on the build then you will need to get an insurance policy to protect you going forward and you will have to pay for the rebuild of the property.
I am a builder – how does CRL differ from other providers?
CRL is a reputable name you can trust. Our success to date has been built on a reputation for providing a fast, efficient service at a competitive price. Specialising in retrospective cover, we ensure that builds at any stage of development are covered. What more, we also offer comprehensive cover which doesn’t require a 2 year builder’s liability period and of course not forgetting our competitive premiums.
Builders can also benefit from CRL membership. By becoming a member of CRL you benefit from discounted rates on multiple builds. You would you also gain recognition and accreditation from across the construction sector by being a member of CRL as this shows a conscientious contractor builder who has insurances in place. Other perks include free marketing across the CRL website and our digital communications.
Finally, many of the leading UK and Ireland mortgage lenders also recognize us so you can be assured you are in safe hands!
Make CRL your home for structural insurance
Call us for a free competitive quote if your property is not currently protected against structural damage. Alternatively, if you are the owner of a new build property which is insured with CRL then contact us to make your claim.
If you are a builder working on a number of new builds, a self-builder taking on your own project or you are working on behalf of clients in the management or sale of a property, then contact CRL for a competitive quote to find out why more builders and professionals are switching to us.
Find out more visit www.c-r-l.com