Structural Warranties
Structural Warranties: The Key to Building Trust with Homebuyers
Structural Warranties: The Key to Building Trust with Homebuyers
As a property developer, you know that building trust with homebuyers is essential for success in the real estate industry. One way to build that trust is by offering a structural warranty. In this short video, we will explore what structural warranties are, why they're important for property developers, and how they can help build trust with homebuyers.
What is a Structural Warranty?
A structural warranty is a type of warranty that provides coverage for structural defects in a home or building. Unlike other types of warranties or insurance, a structural warranty specifically covers issues related to the structure of the building, such as foundation problems, roof defects, and issues with load-bearing walls.
Structural warranties are also known as latent defects insurance.
Why Are Structural Warranties Important for Property Developers?
Structural issues in homes or buildings can be expensive and time-consuming to fix. For property developers, these issues can also damage their reputation and result in lost profits. By offering a structural warranty, property developers can protect themselves from these risks and provide peace of mind to homebuyers.
Although there is no requirement by law to get a structural warranty, it is important to note that many mortgage providers will not provide a mortgage on new development if there is no structural warranty upon completion. This can make it difficult to sell a house under 10 years old.
How Long is Your Development Protected?
Most structural warranties provide 10-year post-construction protection. Please check with your provider
What Is Covered by a Structural Warranty?
Each policy is different but in general, the following are covered in a 10-year structural warranty:
The cost of fully or partially rebuilding as a result of structural defects
The cost of rectifying damages caused by water egress
The cost of issues caused by the drainage system
Insolvency of the developer
Defects insurance covering a period of 24 months following practical completion
Structural insurance after 24 months have passed following practical completion
The cost of alternative accommodation whilst repairs are carried out
Contaminated land cover
Fees
Removal of building debris
How Do Structural Warranties Help Build Trust with Homebuyers?
Offering a structural warranty can demonstrate confidence in the quality of construction and a commitment to customer satisfaction. By offering a warranty, property developers can show that they stand behind the quality of their work and are willing to take responsibility for any structural issues that may arise. This can be a powerful way to build trust with homebuyers and differentiate themselves from other developers who don't offer warranties.
Conclusion
In summary, offering a structural warranty is a smart move for property developers who want to build trust with homebuyers and protect their investments. By providing coverage for structural defects, property developers can demonstrate their commitment to quality and customer satisfaction. If you're a property developer, consider offering a structural warranty as a way to differentiate yourself from the competition and build long-term relationships with your customers.