Conversion warranty questions answered

A structural warranty, also called latent defects insurance, for a building that has been converted into homes or refurbished. It covers the cost of putting right certain defects in the structure for 10 or 12 years after completion, and it has to take account of the existing building as well as the new work.

There is usually no law that says it must have one. In practice most mortgage lenders treat a newly converted home much like a new build and expect a structural warranty from a provider they accept, so without one the homes can be hard to sell or refinance.

Typically the cost of repairing damage caused by defects in the structure - foundations, load bearing walls and frames, floors and the roof structure - and on many policies the waterproof envelope. How far the existing structure is covered depends on the provider and on the condition survey. The policy wording sets out the detail.

Most policies run for 10 years from completion, and some providers offer 12. Many split the period into a defects period at the start, when the developer is asked to put things right, followed by a structural insurance period for the rest.

Offices, barns, churches and chapels, pubs, shops, warehouses, mills, schools, period houses split into flats, HMOs and many more. Not every provider takes on every type, which is where a specialist broker helps.

Usually to some extent. The new work is inspected much as it would be on a new build, while the existing structure is assessed through a condition survey. Some elements may be excluded or need work to bring them up to standard first. See covering the existing structure.

Because nobody from the provider saw the old building go up. The survey tells the provider what condition the existing structure is in and what needs doing, and it is one of the essential documents for a conversion quote.

It does not usually rule out cover. The provider may ask for repairs, strengthening or underpinning before it includes an element, want more investigation first, or exclude that element from the cover. We set out what it proposes before you commit.

Often, yes. Some providers are experienced with listed and historic buildings. You will usually need listed building consent as well as planning permission - a question for your architect, as we do not give planning advice. See listed buildings and churches.

Not to whether you need one. In England, Class MA (commercial, business and service uses to homes) and Class Q (agricultural buildings to homes) need prior approval, and the provider will want to see it. Whether your building qualifies is a planning question for your architect or planning consultant.

Before work starts on site. Registering early lets the provider see the existing structure before it is covered up and inspect the new work as it goes in, and it is usually the simplest and cheapest route.

Sometimes. Some providers will consider a conversion already under way, or occasionally one that is finished, subject to evidence of the work done and possibly opening up. It costs more. Our sister brand Retrospective Warranties specialises in these cases.

Each lender sets its own rules on which providers it accepts. We check whether a provider is likely to be accepted by the lenders your buyers will use before you commit, because a warranty a lender will not accept is of little use - but each lender makes the final decision.

Sometimes. Some lenders accept a professional consultant's certificate from an architect, surveyor or engineer who monitored the conversion at key stages. It is not insurance - on the standard UK Finance form the consultant is liable for six years from the date of the certificate, backed by their professional indemnity insurance. Lenders vary on when they accept one, and many prefer a warranty.

Normally, yes. Every home or unit is certificated individually when it is complete. The warranty stays with the property, so later owners benefit for whatever remains of the policy period - the policy wording sets out who is covered.

As a rough guide, around 1.25% of the rebuild cost for a conversion registered before work starts, and around 1.5% for one that is already finished, compared with around 1% for a new build (plus a modest broker fee, only charged if we arrange your cover). The provider sets the final price after reviewing the scheme. See conversion warranty costs.

Developer and contractor names, the site address, the number and size of units, the total rebuild cost, planning permission, architect's plans and elevations, structural calculations, a ground investigation where relevant and a structural condition survey of the existing building. See how it works.

No. Conversion Warranties is an insurance broker - a trading style of Latent Defects, a trading name of Finance Delta Ltd, which is authorised and regulated by the Financial Conduct Authority. The warranty is provided by the provider or insurer named in your quotation.

We work on a non-advised basis. We find providers likely to cover your conversion and give you the information you need to choose. Before any cover is arranged you receive our terms of business and a statement of your demands and needs.