In this video, Advantage explains how to manage a situation where a structural warranty provider cancels cover or refuses to issue final certificates, reasons why this might be, and how Advantage can help
At Advantage, we often get asked to step in at the last minute to provide structural warranty when a developer hasn’t been able to obtain their final certificate from their current warranty provider. Today we’re going to look at the reasons why this might be.
Why might advantage need to step in to provide final certificates?
There can be many reasons for that. Sometimes it might be that the building hasn’t reached the technical standards that the warranty provider might accept. However, we often begin to see situations where major warranty providers cannot offer final certificates because their current insurer or their previous insurer no longer has the capacity to honour the certificates on the build.
Other than for technical reasons, why might a structural warranty provider not be able to offer cover?
In 2018, the insurance market transitioned from the largest soft market in living memory to a hard market.
In a soft market, insurance companies look to expand their market share, open their availability to take on new business and enter new markets, reduce premiums, and offer attractive policy wording.
In the hard market, premiums begin to increase, and the capacity for most types of insurance decreases, ultimately meaning that the insurers take a step back, reevaluate their business books, stringently underwrite new business, tighten policy wordings, and increase premiums.
How does this affect structural warranties for developers?
Whilst most of the affected warranty providers have found alternative insurance capacity, it is likely there’s a reluctance to provide retrospective cover on these sites, never mind agreeing to honour the terms put in place by the previous provider.
This can leave a big elephant in the room. It’s likely you’ll have paid in full for the warranty and again likely only to receive a partial refund of the insurance premium, which can then leave you out of pocket.
We also have to consider the lasting impacts of COVID-19. This has caused long delays on numerous sites, meaning that without even knowing it, you may have exceeded these cut-off dates. You also have sales waiting, which means that every day you can’t complete, you’re losing money.
How can Advantage help?
At Advantage, we specialise in working with clients, and contractors who have been let down elsewhere. Whether this is for a disagreement over arduous technical standards or the unfulfillment of a structural warranty provision, there’s a simple process in place for us to provide you with a quote and to provide you with a structural warranty.
What is the process?
- Request copies of all structural warranty inspection reports from your current provider
- Contact Advantage at 0845 900 3969 or email sales@ahci.co.uk
- Receive your quotation and instruct Advantage to provide a structural warranty
- Advantage will then conduct a technical audit and survey for your site
- Advantage will then issue you with your certificates
How long will the process take?
For a project at the completion stage, we can usually issue final certificates within a week of instruction. The most important thing is time. The quicker we are instructed, the cheaper it costs.
We can get a surveyor to the site quicker, and there won’t be any lengthy delays, or days of waiting for your certificates, and ultimately, your clients can move in.
Is Advantage accepted by banks and building societies?
Yes. A full list can be seen on our website, and guaranteed acceptance applies to approximately 95% of the mortgage market.
