Structural warranty questions answered

In most cases there is no law in Guernsey, Jersey or the Isle of Man that says a new home must have one. In practice most mortgage lenders expect a new or converted home to come with a structural warranty from a provider they accept, so a home without one can be hard to sell or refinance. See do I need a structural warranty.

The cost of repairing damage caused by defects in the structure - typically foundations, load-bearing walls and frames, floors and the roof structure - and, on many policies, the waterproof envelope such as roof coverings, render, cladding, windows and doors. Wear and tear, maintenance and finishes are usually excluded. The policy wording sets out the detail. See what is a structural warranty.

Most policies run for 10 years from completion, and some providers offer 12. Many split the period into a developer's defects period, usually the first two years, and a structural insurance period for the rest.

Before work starts on site. Registering early lets the provider inspect the foundations and structure as they go in, and it is usually the simplest and cheapest route.

Some do and some do not, and those that do may only take on certain kinds of scheme. We know which providers cover Guernsey, Alderney, Sark, Jersey and the Isle of Man.

Often, yes. Some providers offer retrospective cover once work is under way, subject to evidence of the work already done. It usually costs more than registering before the start. See retrospective structural warranties.

Sometimes. A few providers will cover a completed property after a survey and a review of the build records, usually only if it was finished recently. It depends heavily on the evidence available.

Each lender keeps its own list of acceptable providers. We check whether a provider is likely to be accepted by the lenders your buyers will use before you commit, because a warranty a lender will not accept is of little use.

Yes. The warranty stays with the property, so later owners benefit for whatever remains of the policy period without having to do anything.

The owner of the property at the time makes the claim, to the warranty provider or insurer named on the certificate. In the early defects period the developer is usually asked to put things right first.

As a rough guide, around 1% of the rebuild cost for a new build registered before work starts, around 1.25% for a conversion or a build already under way, and around 1.5% for retrospective cover on a finished home (plus a modest broker fee, only charged if we arrange your cover). The final price depends on the number of homes, how they are built, the ground and the provider, and every quotation shows the premium, inspection fees and our fee separately. See structural warranty cost.

Fast. Every enquiry gets an instant reply with your reference, and we usually call you the same working day. Once we have your completed proposal and drawings, insurer quotes usually come back within one working day. Retrospective cover and unusual sites can take longer while the provider reviews them, so the earlier you ask the better.

No. Island Warranties is an insurance broker - a trading style of Latent Defects, a trading name of Finance Delta Ltd, which is authorised and regulated by the Financial Conduct Authority. We arrange cover on a non-advised basis, and the warranty is provided by the provider or insurer named in your quotation.