| Subject: Building Gurantee |
Author:
Jim
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Date Posted: 06:02:39 02/17/03 Mon
Misleading Statements
New Home Warranties
Building Regulations Division is also responsible for ODPM's policy on new home warranties.
Zurich Insurance Building Guarantees
Zurich Insurance Building Guarantees has a ten year latent defects warranty. It covers newly built homes for sale or rent by the private or social housing sector. It also covers conversions. Where elements of the home are factory built, a manufacturers warranty is available. For the first two years either the developer or manufacturer are responsible for rectifying defects that do not meet Zurich’s published technical requirements, but if they do not deal with them Zurich will act for the policy holder and arrange for remedial action themselves. The remainder of the ten years is insured by Zurich. The policy provides a range of options to widen the cover and the warranty can be extended by five years at the end of the ten year term, subject to claims experience and the payment of an additional premium. Warranty cover can also be provided for self builders and commercial buildings. Further information about Zurich building guarantees can be obtained by calling the Customer Services Department on 01252 522000.
Published 21 January 2002
The Developer’s Warranty – this begins at the effective date given on the insurance certificate or exchange of contracts, which ever is the later. The period of cover will be specified in the schedule but will usually be 2 years for new built home and 1 year for conversion. During this time the developer warrants to put right damage or defects caused by failure to meet the necessary standards of construction.
The Zurich '10' warranty policy must be read in conjunction with the policy schedule. There will be standard clauses and additions to standard cover which will be indicated on the schedule. Some outline details are given them but it is important that prior to completing the purchase, you review the schedule and policy with your client. You need to make sure that the terms of the warranty policy promised by the vendor are being provided. For ease, we have indicated in italics where to look in the policy document for a specified item of cover. In particular; we would ask that you carefully review the definitions, exclusions and conditions to ensure that your client clearly understands the policy cover provided.
The Zurich 10 warranty policy is an insurance against the developer's failure to honour some specific obligations to your client and afterwards insurance against latent defects in the construction of the new home. It provides cover for both newly built homes and conversions. If the date of exchange of contracts is later than the effective date on the insurance certificate, and providing we arc informed (see 'The Buyer's Details Form' item below), the policy term will run from the later date (clause 4.1).
Solicitors and conveyancers guide
The Developer's Warranty begins at the effective dare of the insurance certificate or exchange of contracts, whichever is the later. The period of cover will be specified in the schedule but will usually be 2 years for a newly built home and 1 year for a conversion. During this time the developer warrants to put right damage or defects caused by a failure to meet the necessary standards of construction. (see Part Two)
Insurance Cover-This provides cover for the developer's responsibilities. Should they fail to meet their obligations, Zurich will step in as your client's insurer. After the Developer's Warranty has expired, insurance cover is for damage affecting the structural stability of the new home, as specifically defined in the policy, that has been caused by a latent defect. It is important that your client understands that cover is limited to the specific details outlined in the policy document (see Part Four).
Home owners guide
The Developer's Warranty - tills begins at tilt effective date given on the Insurance certificate or exchange of contracts, whichever is the later. The period of Cover will he specified in the schedule but will usually he 2 years for a newly built honk and 1 year for a conversion. luring this time the developer warrants to put right damage or defects caused by a failure to meet the necessary standards of construction.
insurance Cover- during the Developer's Warranty period, we will step in should the developer fail to meet their obligations. After the Developer's Warranty has expired, cover is for damage affecting the structural stability of the new home - as specifically defined in the policy - caused by a latent defect. It is essential to read the policy to he sure of the cover you have and the period which applies.
This is a case where aiding and abetting takes place
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