Insurance Backed Guarantee

[DIYWell]

I'm going to have an extension built later this year by a builder I trust but he can't provide an insurance backed guarantee if the worst were to happen.

Does anyone know of an insurance backed guarantee scheme from a third party to cover this sort of thing? Plenty of schemes for new builds, but they're not applicable really.

 

[freddiemercurystwin]

Local Authorities do them for extensions, well in conjunction with Masterbond eg http://www.plymouth.gov.uk/masterbond.pdf Contact your local Building Control. Remember though that all warranty policies for buildings are pretty useless unless something major goes wrong such as subsidence. The excesses are pretty high for anything less major. Still, if it helps you sleep better at night then go for it.

 

[^woody^]

The masterbond scheme looks good and cheap, but what does"providing your builder meets the scheme’s standards" entail?

Another option may be to include a retention to cover any issues in the first year, and then after that the home insurance will take over. This wont cover the builder going bump during the work, but I can't see how any insurance will help in that situation either. Just never be in a position where you have paid out more than the value of work done or material on site.

Or engage someone to monitor inspect the work and issue valuations or certify that work is OK and then a stage payment can be made

 

[hotrod]

As per Woody. Your retention is your insurance and will be far more effective should anything go awry. Any heavily caveated insurance policy - will wriggle and squirm to the nth degree until, pulling your hair out in frustration and with your half finished extension degrading in the depths of winter, you put your hand in your own pocket to fund the completion. At least with a retention you have guaranteed solace

 

[DIYWell]

Good points, and to be honest, I'm not too concerned if the builder does a runner mid project; he's getting paid for what he's done, not for turning up and looking pretty between invoices.

I was thinking more of what happens after completion especially when the original contractor has decided life in Cyprus is far better than sunny Scotland. Fair enough holding a retention to cover snagging which I'll be doing any way.

What I had noticed was that some builders offer an insurance backed guarantee post completion e.g. MasterBond 6 from FMB and the 5 year guarantee backed by the Guild of Master Craftsmen.

I have no idea if there are just exercises in peace of mind or really are worth the premium. If they are, where can they be bought from a third party?

 

[freddiemercurystwin]

As mentioned contact Building Control.