What Is a Structural Warranty?
A structural warranty (also called latent defects insurance or a new build warranty) is a 10-year insurance policy that protects a newly built or converted property against major structural defects.
If a qualifying structural defect appears — for example foundation movement or a failing roof structure — the policy pays for the repair, even if the original builder is no longer trading. Because of that protection, most UK mortgage lenders expect a new build to have one before they will lend on it.
What is typically covered
- ✓Major structural defects such as foundation failure or subsidence
- ✓Load-bearing walls, roof structure and floor slabs
- ✓Waterproofing defects affecting the structure
- ✓Typically a 2-year builder defects period for snagging issues at the start of the policy
What is usually not covered
- •General wear and tear and routine maintenance
- •Defects you knew about when you bought the property
- •Cosmetic issues that do not affect the structure
- •Damage caused by the homeowner or by poor future alterations
Coverage varies between providers and products. The lists above describe typical provisions — always read the policy document and exclusions for the specific product you are considering.
What does it cost?
Most providers advertise starting prices from around £1,200 to £1,700 for a typical single new-build home, but the real figure depends on the property value, build type, project complexity and when you arrange cover. Self-build and larger development projects are priced individually, so the only reliable way to know is to request quotes from several providers.
When should I arrange it?
The easiest and usually cheapest point is before construction starts. Most providers can still arrange cover once work is underway, but mid-project applications are typically more involved and can cost more, because the provider needs to inspect and evidence work that has already been completed.
How is it different from an architect's certificate?
An architect's certificate (also called a professional consultants' certificate) is a statement by a building professional that the work broadly complied with building regulations at the time. It is not insurance: it usually lasts only six years, offers limited redress, and many mortgage lenders will not accept it. A structural warranty is an insurance policy, typically lasting 10 years, underwritten so that claims are paid even if the builder or inspector has disappeared.
Do lenders require one?
Most UK mortgage lenders require a professional structural warranty, or an acceptable alternative, before lending on a newly built property. Requirements differ between lenders, so confirm your specific lender's policy before choosing how to satisfy it.
Compare providers side by side
Once you know what to look for, compare UK providers on their published review ratings, prices and quote times.