Issues with new build warranty - how long would you wait?

Warrantyexperts

SallyDucati wrote: »

The developers are already supposed to be looking at other providers , just not sure how proactive they are being, I didn't think about trying to organise it myself for just the one house rather than the developer doing it for all the houses on the development that are not yet sold - thanks for that idea I will look into it.

When a property is going through a sale it often becomes a negotiation point as to who pays for the warranty. The truth is that nobody wants to and that the only reason for purchasing the warranty is to tick the box for the lender. The insurance cover is largely secondary. When the costs run into the thousands you can understand why nobody wants to pay. You can get a rough cost over the phone and then point whoever in the right direction. Might help you get the house if you like it.....

ProDave

Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.

SallyDucati

ProDave wrote: »

Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.

It is a mortgage condition, and also a buildings insurance I think.

SallyDucati

I!!!8217;ve been to see the other house and unfortunately it!!!8217;s a no go. Tiny kitchen and has had a leak in the roof that hasn!!!8217;t been fixed.

Apparently the vendors are now waiting for quotes from new providers to come through so at least some progress, back to the waiting game! My buyer is OK to wait but making noises about reducing his offer to compensate for additional rent if it takes much longer (cash buyer so longer it takes the more it costs him in rent).

Warrantyexperts

ProDave wrote: »

Unless it is a mortgage condition, I would not bother. From many reports I have seen, these 10 year warranties are worthless and it is nigh on impossible to get them to pay out or fix any issues that occur.

If the old one has gone bankrupt, it is probably hard to get anyone else to take it on, as the new provider has not done the stage inspections during the build so are even more likely to wriggle out of a claim and deny responsibility.

I'd agree on the first point, although most people wouldn't benefit from a warranty if it hadn't already been purchased by the developer. The problem there is that the developer has no interest in how good and responsive the warranty is because they never claim on it and therefore it almost always comes down to price.


The second point is completely and utterly wrong I'm afraid. There are many warranty providers in the market and most will take on a completed unit. They price the increased risk that arises from not having completed inspections into their premium costs. In most cases they double the cost that would have originally applied. In some cases, where the CRL/Alpha issues have arisen they may accept the inspections already completed if the customer can produce the records.


Different warranty providers take different approaches to the warranty risk and there are around 15 providers nowadays, all with different criteria and different levels of acceptance by lenders.