If you’re involved with new-build property and houses, you may have questions about arranging appropriate warranties and guarantees. In this article, Guild partner One Guarantee helps to answer some of those questions by explaining what a structural warranty is and how it differs from a Professional Consultants Certificate.
A structural warranty is an insurance policy. It protects future homeowners from any latent defects that may come to light after a property is completed.
A structural warranty insurance policy provides cover for 10 to 12 years after completion. This allows the homeowner to rectify problems at the property, regardless of fault.
Given the length of the policy, structural warranties are accepted by most UK mortgage lenders as a means of protecting their property loans.
A Professional Consultants Certificate (PCC) confirms that a property has been built in accordance with drawings and instructions approved under Building Control or the building contract. A PCC is usually valid for 6 years.
If a property develops a structural defect, architect negligence must be proven to make a claim under a PCC. In order to pursue a claim, the architect must be trading and solvent.
In addition, the architect must maintain adequate levels of professional indemnity insurance throughout the lifetime of the PCC (at least 6 years) to cover any costs that arise as a result of a defect.
One Guarantee is a provider of structural warranties, which are underwritten by UK based, AA-rated insurers (Standard & Poor’s). This ensures that the insurer has the financial stability to cover claims 10-12 years in the future.