Since the relaxation of permitted development rights in 2012, the popularity of conversion projects has understandably soared.
However, insurers have been looking to restrict their exposure to conversion projects, and as such, Building Warranties and Latent Defect underwriters have imposed steep price increases and, in many cases, ceased to offer quotes on conversion developments.
It is here that broker relationships are able to pay a dividend to clients.Learn more about conversion cover with Buildsafe by reading our case study below.
How did BuildSafe Help Ashford Homes obtain Conversion Cover?
Ashford Homes were embarking on the final refurbishment phase of a former school to five residential mews houses and approached the BuildSafe team for conversion cover to insure their latest build.
Property developers are becoming increasingly attracted to conversion projects of historic buildings (e.g. schools, churches, mills) – however, the complexity of these schemes are generally much more so than standard builds from the ground up.
In this instance, Ashford Homes was looking to obtain a range of quotes, as their longstanding insurance provider had changed their refurbishment/conversion warranty conditions.
The practice of obtaining an insurance backed structural warranty or professionally backed guarantee to satisfy the bank/lending platform involved with the project is a lot more complex of a task, particularly if it is the first conversion project being undertaken by the developer.
The insurance provider was requesting payment of the already expensive 10-year structural warranty upfront before an initial site survey whereby it is deemed whether the existing structure is physically sound.
While the existing structure was accepted as being sound, the roof was required to be replaced in it’s entirety which is now becoming an increasingly standard requirement.
If this structural assessment were not deemed to be at the correct standard for the insurance provider, it would result in a monumental cost making the project unprofitable for the developer.
In addition, they would also lose a % of the warranty cost for the site inspection & any technical fees set out by the provider, whilst also wasting precious time communicating with the provider/surveyors.
Matthew Blackhall, Specialist Conversion Warranty Broker, was able to use his experience & knowledge of the market to identify the conversion warranty providers best suited to the project. He was able to obtain a wide range of quotations from building warranty providers who were happy to offer terms on the project and not demand any structural remediation’s to do so.
Also, while liaising with the technical team/underwriters involved with producing a range of quotes for the 10-year structural warranty, he was also able to obtain a quote for a 6-year Professional Consultants Certificate. This provided the developer with increased options for the project at both differing pricing and cover.
Matthew presented the wide range of options to the client, breaking down the quotes & offering independent advice on which quote may be best suited to this specific project.
Using his experience and relationships in the market, he was able to gain quotes from two different structural warranty providers and offer an internal Professional Consultants Certificate at competitive rates, with the same amount of information that the developer originally sent to their original insurance provider.
BuildSafe – Conversion Warranty Providers
Buildsafe is one of the leading specialists when it comes to all types of building warranties and insurance policies. Our team of experts are experienced in sourcing and obtaining comprehensive and affordable conversion warranties for our clients.
Structural Warranties for conversions and refurbishments are important to protect against latent defects that may occur within the structure of a newly converted project.
If the development is to be converted for residential use, the majority of mortgage lenders who will insist that a recognised Structural Warranty is in place for each new build property.
Our experts have over 40 years’ experience in the property sector so you can be assured that we will handle your New Build Warranty with good care.
Our service manages the entire process enabling you to focus on the day to day running of your project. Obtaining a Conversion Warranty can be an arduous process with lots of form filling, additional questions from insurers and time spent chasing an actual quote. We take away that pain by managing the process for you and ensuring you receive the best price for the most appropriate cover to meet your requirements whilst having an easy to reach team of experts on hand at all time.
For more information, please call us on 020 3701 0422 or fill in our contact form