LABC vs NHBC Warrenty

balooney2000

I am familiar with the NHBC warranty but a new house built by a local builder is covered by the LABC Warranty.

Can anyone state clearly what the difference between these two types are?

Many thanks

Doozergirl

Different companies. No discernable difference in the product and LABC is widespread and reputable also.

LABC stands for Local Authority Building Control.

Warrantyexperts

You need to approach a specialist warranty broker who will contrast and compare not only LABC (which is actually Premier Guarantee with a different badge) but also other warranty providers for you. Of course you may need to pay a fee for them to do this but there are differences and they can be significant depending on the property, stage of build, developer involved, size and complexity.

Doozergirl

Warrantyexperts wrote: »

You need to approach a specialist warranty broker who will contrast and compare not only LABC (which is actually Premier Guarantee with a different badge) but also other warranty providers for you. Of course you may need to pay a fee for them to do this but there are differences and they can be significant depending on the property, stage of build, developer involved, size and complexity.

No they don't. They're buying a house with a warranty, not a warranty for a house.

Not many developers on here, but even those of us who might need to buy warranties know that they're as good as useless and you might as well buy the cheapest one with a good coverage of approvals from mortgage lenders. Paying someone to compare them seems utterly pointless.

Warrantyexperts

Doozergirl wrote: »

No they don't. They're buying a house with a warranty, not a warranty for a house.

Not many developers on here, but even those of us who might need to buy warranties know that they're as good as useless and you might as well buy the cheapest one with a good coverage of approvals from mortgage lenders. Paying someone to compare them seems utterly pointless.

Forgive me if I disagree. There used to be NHBC and Zurich who between them dominated the market until the turn of the century. Then one by one a few more providers joined and now there are 16/17 providers, all with different policies, service levels and views on risk.


The problem with the market is that those buying the warranties (developers and contractors) are not those who ultimately need to claim when something goes wrong. Therefore the developers and contractors that don't care what after service is given will go for the cheapest. The poor homeowner who is left with the problem is left with the cheapest warranty that is cheap for a reason.


Alpha Insurance (CRL) were accepted by most lenders and yet went bust in May this year. Most insurance brokers don't deal with unrated insurers (which Alpha were) due to their compliance regime but clearly developers and contractors don't operate under the same regulation. As a result thousands of homeowners now don't have a warranty but had the developer/contractor used a broker they wouldn't have that problem. Maybe sometimes professional advice is worth paying for.

Doozergirl

What does this have to do with the OP? They are buying a house with an LABC warranty.

You're right, the buyer never gets a choice. So the OP can't shop around.

If you're self building, you've built the thing for yourself, hopefully to a better degree of quality than the averaged developer house. The money would be better off spent on a structural engineer to design the foundations properly than the warranty on it going wrong.

Warrantyexperts

Doozergirl wrote: »

What does this have to do with the OP? They are buying a house with an LABC warranty.

You're right, the buyer never gets a choice. So the OP can't shop around.

If you're self building, you've built the thing for yourself, hopefully to a better degree of quality than the averaged developer house. The money would be better off spent on a structural engineer to design the foundations properly than the warranty on it going wrong.

The OP asked for a comparison and my suggestion was that this should be done by a professional. Warranties are complex and I suggested they should seek a professional opinion.


On the wider points you raised:


Agreed that self builders tend to be better risks, and their costs for warranty reflect this.


The warranty protects against defects in materials, workmanship and design for the whole structure so goes much further than just foundation design. It's also there for 10 years and can even be renewed annually after that period with some insurers. Whilst it may not be a perfect system there is a reason lenders insist on a warranty.


If building standards were so good there would be no need for a warranty, alas mistakes happen and things get missed, even by the best people. I'm merely disagreeing with your assertion that warranties are useless. In 16/17 NHBC paid out £84.8m in claims so somebody is succeeding with claims somewhere.

Doozergirl

What is the point in the OP employing someone to compare something when they're only being given one option?

You've raised a weeks old thread to push your own agenda. I'd have reported it, like the other one where you could 'recommend' someone, but I think you're just inside the forum rules here.

Warrantyexperts

Doozergirl wrote: »

What is the point in the OP employing someone to compare something when they're only being given one option?

You've raised a weeks old thread to push your own agenda. I'd have reported it, like the other one where you could 'recommend' someone, but I think you're just inside the forum rules here.

With the greatest respect the OP requested a comparison and all I said was to seek professional advice. Not really seeing what the issue is here. As for my other posts which recommend seeking professional advice then I'm pleased you consider these to be within the forum rules :-)

Doozergirl

I think you're applying more weight to warranties than most people do. It's the house that is primarily important to people, then they want to know that it provides adequate security.

The OP wanted to know if it's okay to buy the house with an LABC warranty. The answer is yes. It is perfectly respectable.

They could seek professional advice, but having spoken to warranty salespeople myself, the answer will be the same. You have no choice anyway but LABC is sufficient. TheyMre not going tostart running through policy documents with a fine tooth comb. The OP could do it for free anyway.

Resurrecting month old threads that relate to your user name is something that spammers do, so I'd be mindful of that.

Warrantyexperts

Doozergirl wrote: »

I think you're applying more weight to warranties than most people do. It's the house that is primarily important to people, then they want to know that it provides adequate security.

The OP wanted to know if it's okay to buy the house with an LABC warranty. The answer is yes. It is perfectly respectable.

They could seek professional advice, but having spoken to warranty salespeople myself, the answer will be the same. You have no choice anyway but LABC is sufficient. TheyMre not going tostart running through policy documents with a fine tooth comb. The OP could do it for free anyway.

Resurrecting month old threads that relate to your user name is something that spammers do, so I'd be mindful of that.

Thanks for the advice....I didn't realise there was a time limit on trying to help people...I don't really see why you feel the need to attack me but each to his own.