Find out how much your warranty is likely to cost.

Some of the key considerations that developers need to be aware of:

• Professional Teams Experience: Demonstration that the developer, contractor and sub-contractors have carried out similar sized projects and has a clean claims history.
• The stage of the works: Developers will always find it most cost effective by arranging the warranty before the works commence.
• Developers financial standing: The stronger a developers financial footprint the more favourable terms an underwriter will offer.
• The size, cost and location of your developments
• A developers rating with other insurance providers (if available)

• Limit of indemnity: Developers should always confirm in writing that the reinstatement cost and the limit of indemnity on the policy mirror one another.
• Access to the lending market: Insurers who don’t have A-rated carriers often have more restrictive lender acceptance lists that can become detrimental to sales.
• A-rated capacity: Check that the insurers’ underwriter has a financial rating from one of the UK’s ratings agencies. While nobody can completely guarantee the solvency of any entity, these ratings evaluate and assess a company’s creditworthiness and offer comfort to their network that they are a reputable business on sound financial footing.
• Demonstrable experience: Property professionals and developers should understand the insurers’ appetite and experience of similar sized schemes

Once we have full enquiry details, alongside supporting documents, it is fair to assume a four-week time period from submission to boots on the ground for an inspection. On larger schemes (in excess of £25m), we always advise clients to allow a 6 week lead time.

While there is no requirement for an insurer to be rated, it provides credibility and comfort to those that they work with. One of the fundamentals that should not be compromised when purchasing a warranty is that the underwriter will be in-situ for the full term of the policy. We purchase insurance in the hope that we don’t have to use it but have the peace of mind that it will protect us if we do.

We understand that there will always be unrated insurers who will look to write a policy at a vastly reduced rate. However, many developers will recall in 2018 when CRL’s un-rated underwriter, Alpha insurance, was declared bankrupt. This was both a time-consuming and costly exercise for developers who had placed their faith in CRL and then had to seek alternative cover.

Our advice is to always always seek a building warranty that is underpinned by A-rated capacity for your developments.