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What you should know but rarely get told…

Why Build-Zone?

Build-Zone has become a major force in the provision of Structural Warranties having started in 2003. Build-Zone were one of the first providers to achieve Designated Warranty Providers by the Department of Communities and Local Government.

Build-Zone customers benefit from them being:
• Coverholders for Lloyd’s and ‘A’ rated Insurance Companies based in the UK and Eire.
• Decision Makers – we are not a Post-box.
• No Membership or Registration Fees.
• Operate in both the UK and Eire where we have a Branch Office.
Build-Zone uses an in-house Technical Services Company; Build-Zone Survey Services Ltd (BZSS), which operates separately under different management and can provide or arrange Building Control and other Technical Inspections using rigorously checked and audited construction Professionals and “Approved Inspectors”, all of whom have to agree to specific Consultancy Agreements

So what about Brexit.. Are there other things that we need to consider?

So far as Passported Insurers operating and accepting risks in the UK are concerned – Brexit will not make much difference, certainly initially, for those Insurers based in places such as Gibraltar wanting to do business in the UK. However with regards to covering risks based within the EU then they will have to qualify and be compliant with Solvency Two.

What is ‘Solvency II’ and what does it mean for policy holders?

New rules which came into force in 2016 hopefully ensure a uniform and enhanced level of policyholder protection across the EU. The new framework – like the current rules – applies to almost all EU insurers and reinsurers. Going forward having already gone through Solvency Two – it is extremely unlikely that UK will abandon the principles. Also of course if any UK Insurer wishes to trade with an EU Member state it is going to have to comply with Solvency Two requirements.

So UK Insurers or those passported under the UK and who want to insure risks in Eire then they are going to have to make new arrangements including possibly moving their operations to EU countries – causing more financial stress.

As far as Solvency Two there will be extra financial cost and as a Consumer you should be aware of what sort of other business is underwritten by the Insurer to satisfy yourself of the risk…is there any long tail or open ended business being underwritten such as Motor or Professional indemnity.

Your choice of Insurer is more crucial particularly dealing with 10-year Structural Warranties.

Why?

Structural Warranty Insurance runs for 10 years whereas most insurance is for 12 months.

What happens if your Insurer goes bust…

Rated vs Unrated Insurers
The following Insurers were Unrated – and went bust! Quinns, Setanta Insurance, ERIC, Balvar, Lemma Europe, Millburn, Enterprise and more recently Gable – who actually specialised in Construction Sector. As a matter of interest the CEO of Gable has since stated that he blamed Brexit and Solvency Two…!

Should we be concerned about Unrated Insurers?

Definitely – Security Rating is one of the basic indicators of the Insurers ability to pay Claims. 10 years is a long period. Invariably you are told not to worry as they are covered under the Financial Services Compensation Service (FSCS) – which is controlled by the Financial Conduct Authority (FCA) BUT the FSCS only pays up to 90% of any claim and do not provide cover any Companies with a turnover over £1M.

Build-Zone has been providing structural warranties since 2003 and is a major force in the provision of structural warranty products in the United Kingdom and Ireland, catering for New Home Warranty, Social housing and commercial development as well as completed and self-build properties.