How much does a conversion warranty cost?
As a rough guide, around 1.25% of the rebuild cost for a conversion registered before work starts (plus a modest broker fee, only charged if we arrange your cover). Here is what drives the price on a conversion and what you pay when.
- Instant response
- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- Change of use specialists
- A certificate for each home
The rule of thumb
Conversion warranty cost as a percentage of the rebuild cost
Most schemes come out at a percentage of the rebuild cost - what it would cost to build the finished homes again, not what they will sell for and not the gross development value. That figure covers the insurance premium and the provider's technical inspection and administration fees (plus a modest broker fee, only charged if we arrange your cover).
For example, a barn conversion with a rebuild cost of £400,000, registered before work starts, would typically come to around £5,000. The same barn converted without a warranty and needing cover once finished would be nearer £6,000, and a new build home with the same rebuild cost around £4,000 (plus a modest broker fee, only charged if we arrange your cover).
These are indications only, not quotes. The final price is set by the warranty provider once it has reviewed your scheme and the condition survey. Minimum premiums and fixed inspection fees can make a small conversion work out at a higher percentage, and extras such as 12 year cover or deposit protection add to it. A conversion already under way is priced case by case and usually costs more than one registered before the start. Your quotation shows every part of the cost separately.
What affects the premium
What providers price on for a conversion
- Rebuild cost of the finished homes - the starting point, as the percentages above show
- Condition of the existing structure, and what the survey recommends
- How much new structural work there is - underpinning, new floors, extensions and extra storeys
- The type and age of the building - listed buildings, timber frames and traditional materials all need more thought
- Number of units, and whether the scheme is phased
- Stage of the work - registering before the start is usually cheapest, a finished conversion costs most
- Your track record and your contractor's, especially on conversions
- Policy length and extras, such as 12 years instead of 10, or insolvency cover for deposits
What you pay
What a conversion warranty quote is made up of
Every quotation we give sets out each part of the cost separately, so you can see exactly where the money goes.
Insurance premium
The cost of the cover itself, set by the provider or insurer, plus any tax that applies to it.
Technical inspection fees
The provider's charge for reviewing the design and the condition survey, and for inspecting the old structure and the new work.
Administration and broker fees
The provider's administration fee, where it charges one, and our broker fee for arranging and managing the cover. Our modest broker fee is only charged on success - if we do not arrange your cover, you pay us nothing.
When fees are payable
Most providers ask for payment when the scheme is registered, before work starts or before cover begins. Some split larger schemes into stages. Cover for a finished conversion is usually paid in full before cover is confirmed. Your quotation will say exactly what is due and when.
Example scenarios
How the price changes from one conversion to another
These are illustrations, not quotes - they show why two conversions of a similar size can be priced very differently.
A single barn conversion, registered before the start
One home, one set of inspections and one certificate. The price is driven by the rebuild cost, the condition of the barn and how much new structural work there is - typically around 1.25% of the rebuild cost (plus a modest broker fee, only charged if we arrange your cover), though minimum fees can push a single home a little higher.
An office block converted into twenty flats
More value insured, a large existing frame to assess, fire safety to review and more inspection visits. Expect a starting point of around 1.25% of the rebuild cost (plus a modest broker fee, only charged if we arrange your cover). Extra storeys on the roof or deposit protection for buyers add to it.
A house split into three flats
A small scheme, so minimum premiums and fixed inspection fees count for more. It may come out above 1.25% of the rebuild cost (plus a modest broker fee, only charged if we arrange your cover), especially where there is a new basement or loft flat.
A finished pub conversion that now needs a warranty to sell
Cover for a finished conversion, where it is available at all, depends on a survey and the build records. Expect around 1.5% of the rebuild cost (plus a modest broker fee, only charged if we arrange your cover) - usually the most expensive route, which is why registering early matters. See Retrospective Warranties.
Ways to keep the cost down
- Ask for quotes while the design is being finalised, and register before work starts on site
- Commission the structural condition survey early, and act on its recommendations
- Have the architect's plans, structural calculations and any ground investigation ready
- Use a contractor with a track record on conversions of your type of building
- Keep dated photographs of every stage, especially underpinning and anything that will be covered up
- Tell the provider early about anything the strip-out reveals, before it becomes a problem at inspection
Request an indication
Tell us about the building and what it will become, and we will give you an indication of what a conversion warranty is likely to cost, before you commit to anything.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Conversions anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
