What is a Build-to-Rent Warranty?
Unlike traditional Structural Warranties, which protect a homebuyer who may be self-funded or purchase the property via a mortgage loan, a Build-to-Rent Warranty protects the developers and investors directly against potential structural defects in a build-to-rent property.
When the developer and/or investor will be holding onto the asset rather than selling it off upon completion, it’s important to have a suitable Structural Warranty in place. A multi-residence property that’s purposefully built for renting will have different costs and conditions to consider.
If you’re developing or investing in a build-to-rent construction, not just purchasing a new build or buy-to-let property, then our Build-to-Rent Structural Warranties can offer you valuable financial security should you need to claim on Build-to-Rent Latent Defects Insurance.
Are you building multiple homes for rent?
Whether your build-to-rent project is a horizontal or vertical development, solely residential or incorporating mixed-use units, it’s crucial to ensure that the proper legal cover is in place from the very start. The last thing you want is to jeopardise the significant financial investments involved, which can be worth hundreds of thousands to millions of pounds.
You shouldn’t just rely on standard building insurance to cover potential losses, as these policies often don’t cover ongoing developments anyway. A tailored Build-to-Rent Structural Warranty can provide a guarantee of protection against structural defects from the beginning of construction up to 10-12 years after the completion certificate has been issued.
For five to six-figure projects, it’s not worth compromising on structural protection. This type of policy is as fundamental to the property as the foundations themselves. The majority of purpose-built construction projects might reach completion and endure for many years without a hitch, but you never know when something might go wrong at any stage.
What does a Build-to-Rent Structural Warranty cover?
Similar to other Structural Warranties, a Build-to-Rent Warranty covers latent structural defects for a period of 10-12 years after registered completion of the construction project. The first 2 years are the defects insurance period, where the builder must fix any structural issues that occur.
From this time onwards to the end of the 10-12 years, known as the structural insurance period, the warranty provider will cover the costs of repairing structural damage following a successful claim, rather than the builder being directly liable for carrying out the repairs.
Standard structural defects insurance may also include contaminated land under its cover terms. Depending on your requirements and eligibility, and the specific warranty contract you’re offered, it may be possible to add further extensions to cover additional elements such as builder insolvency, mechanical and electrical inherent defects, and loss of rent.
Why choose us for your Build-to-Rent Warranty?
If you’re looking for a Build-to-Rent Structural Warranty provider with the technical expertise to support your project, then ABC+ Warranty could be the answer. We can offer long-term Structural Warranties for a variety of property types and uses, helping to mitigate risks and provide asset protection from land acquisition to completion and beyond.
We also offer a range of other services that you might find helpful for your build-to-rent project, including Road and Sewer Bonds, Building Control advice, Technical Auditing, and Branded Hoarding. Our Chartered Surveyors can conduct thorough inspections and provide detailed reports throughout the construction of your build-to-rent property, ensuring that all works comply with Building Regulations, therefore safeguarding your investments in the property.
Our Structural Warranties are accepted by a range of CML-approved lenders (Council of Mortgage Lenders), so why not contact us to see what we can do for you? You can either apply online for a quick quote or get in touch with us by phone or email to secure a competitive offer.