A social housing warranty is an important type of cover for developers when constructing social housing. Whether it’s a new-build project or a regeneration of an existing building, a social housing warranty is extremely beneficial to all stakeholders involved throughout the process.
Ensure you have essential coverage for your social housing project to meet legal requirements and to protect against any damage or repairs in the future.
Social housing warranty explained
A social housing warranty, which can also be called a social housing latent defects insurance, is a type of cover that provides financial security for a variety of social housing construction projects.
A social housing warranty guarantees that your properties are safe for occupancy and eliminates the liability risks that are associated with structural issues that could emerge later.
If you can obtain a social housing warranty, you can secure the necessary funding for the project and increase the value of completed properties. This type of warranty also safeguards all parties involved in the development (which can be a lot for social housing projects), it extends protection and provides additional cover for up to 12 years.
The key benefits of a social housing warranty
There are an incredible number of advantages to obtaining a social housing warranty for your project. They cover a wide range of aspects throughout the entire process, from the initial stages, through construction and then years after completion.
Going through a company like ABC+ Warranty provides the following benefits:
- 10 or 12-year cover (with additional cover)
- No broker fees for registration, renewal or holding bonds
- Part and completed projects are considered, though it is more cost-effective to obtain coverage before construction work starts.
- Full risk transfer from years 3 to 12
Social housing developments tend to involve many different stakeholders, making it much more complex than standard housing construction. Social housing warranties provide financial protection for everybody involved in the process, which is important for projects that demand an extensive financial investment. By demonstrating your ability to protect investor funds, you can attract even more financing for the project.
Another key benefit of a social housing warranty is the protection it offers against potential structural defects long after completion. If any defects are found within the 10 or 12-year coverage period, the warranty contributes to repair and reconstruction costs, giving everybody peace of mind that major issues can be resolved.
Coverage of a social housing warranty includes pre-completion, post-completion, major structural damage, contamination risk, and buyers’ deposit risk. This offers you, the developer, a major safety net and peace of mind – that you can also offer stakeholders and investors – that any financial issues are covered.
Obtain a social housing warranty for your project
If you’re a developer or housing association and have a social housing project planned and ready to go, but you need financial and structural security, get yourself a warranty.
Offer potential investors and stakeholders security for their funds and the project’s completion with a social housing warranty, and save yourself some money by obtaining the coverage before building work commences.