WHAT DOES AN INSURANCE BACKED GUARANTEE DO?
No contractor –no matter how reputable- can give assurances that they will always be around to honour the terms of their own written guarantee. An Insurance Backed Guarantee is a low-cost insurance product which is designed to protect property owners against defects which would normally be covered by the contractor’s own written guarantee in instances where the contractor cannot rectify those defects as a result of having ceased to trade.
The premium is payable in a single one-off payment and the period of the insurance runs for 10 years, or the period of the contractor’s own written guarantee, whichever is the lesser period.
In the event that a defect becomes evident in the insured works, you should contact the contractor responsible at the soonest opportunity so that they may rectify the defect under the terms of their own written guarantee.
In the event that you have found that the contractor has ceased trading, you should then contact the insurance company. The full claims procedure is set out on the policy documents provided to you by your insurance company.
In the event of a claim, you will be required to complete a claim form and submit copies of associated documentation in relation to the insured works. Once this is received a re-inspection of the works would be organised and this would be carried out by an alternative approved contractor. There is a re-inspection fee payable (of approximately £150) in respect of each and every claim. The fee would be returned to you, should the claim be valid, once the relevant excess amount has been deducted.
Where the re-inspection report confirms defective works that would have been covered by the original contractor’s written guarantee, the insurer -subject to the terms of the contractor’s guarantee and the insurance policy wording- will meet the costs of remedial works that are required.
Actual period of cover up to 10 years
Insurance policy for each property
Protects against contractor ceasing to trade
Underwritten by a UK based, authorised and regulated insurance company