What level of cover should I choose?

A beautiful country cottage set in rolling countryside.

The majority of structural warranties on offer cover the fabric of a building only and are intended to provide a reasonably low-cost back stop for you, should your contractor be unable to honour the warranty obligations he has provided under the JCT contract.

This primary level of cover insures things such as foundation, walls (both internal and external) and the roof of your property.

There is usually an excess to pay and although you can select a large excess most warranty purchases stipulate £1000 as the amount you would be asked to pay per claim.

Extending the cover
Some structural warranties allow the cover to be extended to include mechanical and electrical systems within the property and fixtures and fittings. These systems are assessed for their durability at the time of installation and then given a lifespan which may or may not cover the whole of the warranty period provided for the structure itself.

The majority of structural warranties on offer cover the fabric of a building only and are intended to provide a reasonably low-cost back stop for you, should your contractor be unable to honour the warranty obligations he has provided under the JCT contract.

You should be aware that any claim made under this section is likely to be reduced by the proportion of the life of the product that has already expired.

For instance, if an air conditioning system is adjudged to have a life of fifteen years and you make a claim under the policy in year five, your payment will be restricted to two-thirds of the amount  because the equipment is already 33% worn out.

Providing a subrogation waiver
In addition to cover for these systems you can also choose to provide a subrogation waiver for any professionals working on the project.

This can be particularly useful where an existing professional team has been sacked or contractors providing professional support have found themselves unable to complete the contract, perhaps following a liquidation.

This extension in cover would give any incoming professionals protection against potential problems caused by the previous team and which their own professional indemnity is unlikely to provide cover.