Retrospective Structural Warranty – What it is?

What exactly is Retrospective Structural Warranty?

Compariqo can arrange a policy called a Retrospective Structural Warranty, which covers properties that have already been completed, but do not have structural defects insurance in place. Once an inspection has been successfully completed and signed off by Building Control, the policy provides cover from the date of sign off and for the remainder of the 10 years.

If you have a house that you are trying to sell that is under 10 years old, you will find it difficult to do so if there is no structural warranty in place. Unless the buyer can lay out cash, they will require a structural warranty in order for them to be able to obtain a mortgage.

Lenders will not commit to providing finance on a property unless the owner can provide a structural warranty that was obtained either during the build or after the build was completed, known as retrospective structural warranty.

When you would need Retrospective cover

There is No Structural Defects Insurance already in place – you may have purchased a property that you intend to sell on, that was built without structural defects insurance in place that the previous developer was under no obligation to take out. Or you may have a property that did not previously require you to insure but that you now intend to sell with the protection of insurance in place.

Insolvency – You may be a fixed charge receiver who needs a fast solution for solvency situations or distressed sales.

Developer gone into Administration – Properties without a completion certificate will be difficult to borrow against and will require a structural warranty insurance certificate in order to be accepted by mortgage lenders.

What does Retrospective Structural Warranty do?

A retrospective structural warranty is a type of insurance policy that works in various ways:

• It allows a homeowner to have financial protection in place against the risk of a rebuild should anything go wrong with the structure of the house within the first 10 years after build completion.

• It allows sellers to be able to offer a buyer a means to obtain a mortgage, so that lenders are secure in the knowledge that they are financing a property that has insurance in place to protect the new homeowner from liability for any pre-existing conditions in the structure of the build.

• It covers the property against any structural defects for the remaining balance of 10 years since build completion.

The warranty is completely transferrable during first 10 years of the properties life as the certificate relates to the property and not the homeowner.

What does it cover?

The policy covers the cost of:

• A partial or complete rebuild in the event that a defect cannot be fixed.
• Workmanship
• Materials
• Defective Waterproofing
• Drainage

Extra cover can be taken out if desired to cover roof tiles and windows although this is optional.