Some recently built properties have a Lack of NHBC or Architect’s Certificate. Some newly built properties (and major conversions) are usually covered by a 10-year structural guarantee or an architect’s certificate confirming that the property is structurally sound. A lender will normally expect such a cover to be in place in respect of any property which is less than 10 years old and will be reluctant to provide a mortgage on the property. An insurance policy can be provided that protects the lender in the event that they incur losses because of the absence of the structural guarantee.
In what circumstances is cover required?
Where a valid NHBC Guarantee or Architect’s Certificate cannot be produced for an existing residential property.
Note. Cover is usually provided to a mortgagee only. For details of full structural defects cover please follow the link to Latent Defects insurance.
Risks covered: Losses arising following repossession or forced sale of the property where there is a reduction in market value as the result of the absence of the NHBC certificate.
Costs and expenses incurred are covered with the consent of the insurer. Properties that are vacant for 30 days or more may require unoccupied property insurance.