Reasons You Need a Retrospective Cover
A Retrospective Warranty for a building is pertinent if you are either looking to sell or refinance a property that has a build date within the past 10 years that doesn’t have a recognized 10-year structural warranty attached to it.
No lender is going to agree to offer funds without this type of warranty in place. They need a warranty that covers everything from the structure of the property or something that excludes the owner and/or lender from any future liability resulting from structural issues. It’s not possible to obtain a mortgage as a buyer without this type of warranty in place.
How Long Is The Policy Good For?
The coverage will last for the remainder of the 10 years from the exact date of the Building Regulation Sign-Off.
Is It Transferable?
Any retrospective warranty can be transferred to a buyer. They can be transferred within 10 years. The certification for the home ends up getting attached to the property itself and not to the person that buys the insurance.
What Does It Cover?
This warranty effectively covers the property if any structural defects result in issues down the road. It includes defects resulting from workmanship, design, and construction.
Process and Timing:
Before it gets issued, a nonintrusive survey will be done by the company giving the insurance.
They will look at everything from the physical condition to the design of the property. They will do this to ensure that it’s compliant with the requirements of the warranty. They will also be responsible for collecting copies of all of the relevant certificates. These can include but aren’t limited to Building Regulation Sign Off, Gas and Electric certificates, and more. If there are any issues spotted during the survey, minor work might need to be done before it’s offered. Otherwise, any noted existing issues can be excluded from the policy.
Once the certificate of insurance is issued, it will cover the balance of the 10 years after the build is complete.
It can take around 5 to 15 days for it to process.
Can I Replace An Invalid Warranty?
Yes, it can be used to replace a warranty that is currently invalid. For instance, if it becomes invalid due because of the financial failure of the originating issuer, it’s likely going to need to be replaced. Your mortgage lender will likely require that it is replaced with another valid warranty for the remaining period of the term. You will need to check with your specific mortgage lender for the details.