CRL warranty invalid - home insurance question

Seller175

I bought a new build 3 years ago. It had CRL warranty on it which is now invalid due to the insurer going bust. A replacement latents defect policy for the remaining 7 years from ABC has been quoted at 3.5k.

My question is that if I didn’t take this ABC policy out and there was a structural problem later down the line, will be insurance cover this? I am trying to work out whether it’s worth paying this 3.5k for peace of mind, but if my insurance will cover any major structural issues then it seems pointless. I have had no issues with the property so far. Any minor things were sorted by the builder in the first 2 years.

Seller175

*buildings insurance that is

davidmcn

Your buildings insurance only covers the risks specified in your policy. So I suggest you read that if you want to understand what it covers, but it's almost certainly not going to help you with latent defects in the build (after all, if standard buildings insurance did cover it, what would be the point of these warranties?).

phill99

As above. Your policy wording will define the limits of risk. You need to read it. We aren't soothsayers.

G_M

Almost certainly not, though it will depend on the precise defect, and the specific policy you have.

Bear in mind the ABC policy won't just help pay for defects (subject to the small print....), but will help if you sell. There have been threads here from owners affected by the CRL bankrupcy who have had trouble selling as their buyers naturally want the 5 year old property to come with a warranty and back out when they find it's not valid.

[Deleted User]

Home insurance rarely covers faults stemming from poor building work, the warranty pretty much exclusively covers faults as a result of poor build quality. You need both

Seller175

I am not asking whether a buildings insurance is going to provide like for like latents defect policy because that would be nonsensical. What I’m asking is whether if there was some serious structural damage would that be covered? Now, there is no shoddy workmanship as all building regs were signed off etc.

In terms of sales risk, that doesn’t apply here as this is a forever home. To overcome a sales risk u just get a PCC which costs 1.8k and whilst this doesn’t provide us with any cover, what it does do is provide a certification that the property is sound and mortgageable.

G_M

Seller175 wrote: »

I am not asking whether a buildings insurance is going to provide like for like latents defect policy because that would be nonsensical. What I’m asking is whether if there was some serious structural damage would that be covered? Now, there is no shoddy workmanship as all building regs were signed off etc.

In terms of sales risk, that doesn’t apply here as this is a forever home. To overcome a sales risk u just get a PCC which costs 1.8k and whilst this doesn’t provide us with any cover, what it does do is provide a certification that the property is sound and mortgageable.

If the 'structural damage' is caused by an insured risk (eg subsidence) then yes, your buildings insurance should cover it.


If it is caused by a defect in the build (eg foundations were of insuficient depth), then no.


But your question makes no sense. You are concerned about lack of CRL warranty, and clearly standard buildings insurance will not plug that insurance gap.


Just as the CRL policy (if still valid) would not have covered risks like subsidence or fire covered by buildings insurance.


Can't comment on PCC. No idea what it is. But at 1.8K it sounds an expensive way just to facilitate a sale. Why not spend £3.5 and get a proper warranty?

davidmcn

Seller175 wrote: »

What I’m asking is whether if there was some serious structural damage would that be covered?

If the damage is caused by one of the insured risks (e.g. subsidence, fire, flood), yes it would. But like I said above, you'll need to read your policy to see what risks are covered.

eddddy

In simple terms...

• A latent defects policy covers building defects - i.e. the result of poor workmanship or poor materials by the company that built your property.

• A buildings insurance policy almost certainly excludes anything that results from poor workmanship or poor materials

So there is no overlap between the two policies at all.

(As others say, this will become clear if you read the policy documents, to see what risks are covered by each policy.)

Seller175

What u mean it makes no sense? If u had a property that was 11 years old, then would any defect not be insured by your buildings insurance?