How much does a structural warranty cost?
As a rough guide, around 1% of the rebuild cost for a new home registered before work starts - a little more for conversions and builds already under way (plus a modest broker fee, only charged if we arrange your cover). Here is what drives the price on the islands and what you pay when.
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- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- 10 and 12 year cover
- Large and small Island sites welcome
The rule of thumb
Structural warranty cost as a percentage of the rebuild cost
Most schemes come out at a percentage of the rebuild cost - what it would cost to build the homes again, not what they will sell for. That figure covers the insurance premium and the provider's technical inspection and administration fees (plus a modest broker fee, shown separately in your quotation and only charged if we arrange your cover).
For example, a new home with a rebuild cost of £400,000, registered before the start, would typically come to around £4,000. The same home as a conversion would be nearer £5,000, and with retrospective cover nearer £6,000 (plus a modest broker fee in each case).
These are indications only, not quotes. The final price is set by the warranty provider once it has reviewed your scheme. Minimum premiums and fixed inspection fees can make a single small home work out at a higher percentage, and extras such as 12 year cover or deposit protection add to it. Your quotation shows every part of the cost separately.
What affects the premium
The main things providers price on
- Rebuild cost of the homes - the starting point for the price, as the percentages above show
- Number of homes, and whether the scheme is phased
- How it is built - traditional masonry, timber frame, modern methods, basements and flat roofs are all priced differently
- Ground conditions, including slopes, made ground and anything that affects the foundations
- Stage of the build - registering before the start is usually cheapest, retrospective cover costs more
- Your track record and your contractor's
- Policy length and extras, such as 12 years instead of 10, or insolvency cover for deposits
- Inspection logistics - island sites can mean travel costs for the provider's surveyor
What you pay
What a structural warranty quote is made up of
Every quotation we give sets out each part of the cost separately, so you can see exactly where the money goes.
Insurance premium
The cost of the cover itself, set by the provider or insurer, plus any tax that applies to it.
Technical inspection fees
The provider's charge for reviewing the design and inspecting the work during the build.
Administration and broker fees
The provider's administration fee, where it charges one, and our modest broker fee for arranging and managing the cover (only charged on success - if we do not arrange your cover, you pay us nothing).
When fees are payable
Most providers ask for payment when the development is registered, before work starts or before cover begins. Some split larger schemes into stages. Retrospective cover is usually paid in full before cover is confirmed. Our broker fee is only due once your cover has been arranged. Your quotation will say exactly what is due and when.
Example scenarios
How the price changes from one scheme to another
These are illustrations, not quotes - they show why two schemes of a similar size can be priced very differently.
A self-build home in Guernsey, registered before the start
The simplest case. One home, one set of inspections and a single certificate. The price is driven mainly by the rebuild cost and the build method - typically around 1% of the rebuild cost, though minimum fees can push a small home a little higher.
Twelve apartments in St Helier, sold off plan
More value insured, shared structure, fire safety and cladding checks, and more inspection visits. A starting point of around 1% of the rebuild cost, and adding insolvency cover to protect buyers' deposits increases it.
A barn conversion on the Isle of Man, already under way
A conversion that has already started. The provider needs evidence of the work so far, may ask for parts to be opened up and prices in the extra uncertainty, so expect around 1.25% of the rebuild cost rather than around 1% for registering a new build at the start.
A completed house that now needs a warranty to sell
Cover for a completed property, where it is available at all, depends on a survey and the build records. Expect around 1.5% of the rebuild cost - usually the most expensive route, which is why registering early matters.
Ways to keep the cost down
- Ask for quotes while your drawings are being finalised, and register before you start on site
- Have construction details, the structural engineer's design and any ground investigation ready
- Use a build method and specification the provider is comfortable with - we can tell you which
- Keep good records and dated photographs of every stage, especially anything that will be covered up
- Tell the provider about changes early, before they become problems at inspection
Request an indication
Tell us about your development and we will give you an indication of what a structural warranty is likely to cost, before you commit to anything.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Guernsey, Alderney, Sark, Jersey and the Isle of Man
- Free and no obligation
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