The UK’s structural warranty market has faced significant capacity shortages in recent years, making it increasingly difficult for developers to secure appropriate cover. This has led to delays in project timelines and increased costs for many builders.
Capacity shortages stem from insurers exiting the market or limiting their offerings due to risk concerns. For developers, this creates uncertainty in securing essential warranties required by lenders and stakeholders.
The introduction of new A-rated capacity solutions offers some relief, providing developers with more options for obtaining coverage. However, not all policies are created equal. Developers must carefully evaluate warranty terms, including coverage limits, exclusions, and claims processes, to ensure they meet the specific needs of their projects.
The future of structural warranties lies in balancing supply and demand while maintaining robust underwriting standards. Developers who stay informed and compare options will be better equipped to navigate this evolving landscape.