builders insurance...question..

Deals_2

in france when something goes wrong after a building job has been done (and this does happen and ends up costing the builder a lot of time and money and can put them in debt) they have an insurance called "assurance quinquennale". basically this covers the builder and the insurance kicks in so that he does not go into debt without this being paid for. I wonder if there is anything equivalent in the UK. thanks in advance.

adaze

Would that be something like a professional indemnity?

McAzrael

In France the design team and the developer are jointly liable for up to ten years, so they all normally insure themselves. Liability is quite different here, usually rests with only one party for each liability (although establishing which party, if any, it lies with can be difficult) and can run from 6 years (contracts signed under hand) up to 15 years courtesy of the Latent Defects Act. Most professionals will have professional indemnity insurance (including members of RIBA and RICS who are required to have it). Most developers and building contractors and subcontractors will have public liability insurance.

Most mortage companies will not accept a newly built house as security unless it has an approved insured warranty or bond, which means that pretty much all new build is covered - usually under the NHBC scheme, or sometimes the Zurich scheme. Customers for large works (hospitals, schools, offices) may well demand some form of bond, and schemes such as PFI come at this problem from a quite different angle. I can't say that I have heard of developers insuring themselves against latent defects in small works other than new build housing, and certainly not in the case of small renovation works such as extensions. This doesn't mean that such insurance does not exist. There are, of course, insurance backed wararnties offered with very small works such as replacement windows.