Specialist structural warranty provider and latent defects insurer Build-Zone has developed a strong reputation in the UK and Irish construction sectors, helping to reduce risks on everything from single homes to large residential and commercial developments
For 20 years, Build-Zone has specialised in 10 and 12-year structural warranty and latent defect insurance policies across Residential, Commercial, Social Housing, Mixed-Use, Build-to-Rent and Major Projects.
We spoke with some of the senior management team at Build-Zone to look back over a period in which the business has established a key foothold in the construction insurance market, to understand what makes it so successful and to gain insight on the key changes they have experienced, and those on the horizon.
Peter Richardson has worked for Sennocke since 2001. An inaugural director, Peter recently stepped into Paul Kempton’s shoes as managing director after he passed away in 2021. Peter is now responsible for setting the strategic objectives for Build-Zone and is hands-on across business development and customer success initiatives.
What has kept you in the structural warranty industry and, more specifically, Build-Zone?
“Several factors have kept me in the insurance sector. I have a genuine interest in insurance and love being part of an organisation that can constantly challenge the market, explore and react to different scenarios and provide solutions that fit.
“I guess you could say that at the beginning, we were able to ‘put our money where our mouth was’ and get on and do something rather than follow the market. “It was great to be able to nurture this way of working while we established our leading position against our competitors.
“I love the thrill of growth and constantly providing solutions that we were able to shape. Naturally, other companies have come into play during our time, trying to model themselves on Build-Zone – they know us, and they know we lead by expertise and deliver the best for our customers time after time.”
What are some of the key changes you’ve noticed in the structural warranty market over the last 20 years?
“The most significant change has been the loss of appetite of insurers to support this sector. 20 years ago, there weren’t many that fully understood it. Build-Zone led the way in
finding capacity. A few more insurers came on board but didn’t necessarily do it the way we
do. I believe we’ve been around as long as we have because we do it in a certain way, where we value that relationship with our insurer partners.
“Build-Zone is well ahead with ‘A’ rated capacity and leading the way – particularly now towards those larger risks. We’ve seen competitors that followed us into the market, using unrated insurance capacity or even unregulated insurance capacity. These offshore companies are not regulated in the UK and therefore, there’s absolutely no consumer protection.”
Joe Gooden has worked for Build-Zone for five years and has more than 20 years’ experience in the insurance sector. He is a director of Sennocke and works on major projects.
What have been the key challenges in the structural warranty market over the last 20 years?
“Most of the challenges we overcome relate to peoples’ understanding of what they are
purchasing, so it comes down to how well-informed they are about the process. The buying signals can be completely different depending on the customer. If you have a small developer and they’re just looking for a quick sale, it’s just a piece of paper they want rather than the detail that sits behind it from an insurer’s capacity and financial strength point of view.
“Whereas when you get into the type of major projects that I look after, there’s so much due diligence that goes into those deals. The net widens, and you’re dealing with lawyers, accountants, funders, joint venture partners etc, which is where they look into the detail of the insurer’s security and the levels of cover they’re getting.
“Other challenges stem from the development of [Modern Methods of Construction] MMC and how the future of these techniques filters down to warranties. MMC has some fantastic benefits – the ability to build faster and reduce the number of site staff and the impact on
carbon footprint reduction, but unlike traditional construction methods, we still don’t know how modern, offsite methods will fare against five, 10, 15 years.”
Ash Poore has worked with Build-Zone for upwards of 15 years, five of which as a director. He leads the Underwriting team.
What has kept you in the insurance industry, specifically Build-Zone?
“It is a great company to be part of. It’s a subject I am passionate about, and dare I say it – it can be fun! And you get to be part of some innovative construction projects. I love the process of dealing with brokers, insurers, developers, investors, lawyers, architects and engineers – it’s always quite varied in terms of who you’re dealing with, making the process exciting and engaging.”
What makes Build-Zone stand out from other providers?
“Build-Zone is very risk management focused, whereas other providers in the past have not
been. We’ve always remained committed to independent technical audits, working with construction professionals to sign off our projects. This has meant we have a good claims experience with our insurers. Build-Zone is one of the few providers that’s been
around longer than the policy length!”
Bob Stembridge has worked for Build-Zone for 10 years. His expertise within the financial markets as a lender and then the insurance industry has helped the business grow sustainably.
Build-Zone is backed by ‘A’ rated insurers
“It’s our profile and the way we operate. Because we have an independent view on developments, we work with external surveyors, which is supported by a second set of eyes from our team to ensure everything is done to the letter. Only being backed by ‘A’ rated insurers also helps us stand out.
“Build-Zone’s roots were in the self-build market for many years. This meant that we were very customer-focused and in contact with the end policyholders and contractors. Whereas some warranty providers concentrated on the builder-developer market trying to retain market share, Build-Zone grew the business organically from the self-builder to smaller developer market and, in recent years, to the sizeable multi-million-pound apartment developments you see in many large towns and cities.”
*Please note: This is a commercial profile.
Build-Zone
Tel: 0345 230 9873
