If you’re in charge of the construction of a building that’s designed for commercial purposes, you will want to obtain the right insurance policy to cover any unforeseen circumstances.
What type of coverage is that? A commercial property warranty.
You can obtain one at ABC+ Warranty, as well as plenty of other structural warranties. Continue reading to find out what a commercial property warranty is, and what it does and doesn’t cover.
What is a commercial property warranty?
You might have heard it being called commercial latent defects insurance, but either way, a commercial property warranty is a building structural warranty that offers financial protection for a wide range of commercial construction projects.
By setting up the commercial property warranty, you’re ensuring that the construction project is legally safe to sell, rent, or lease out once complete, taking away the risk of liability for the landlord if any structural damages show up later on.
With a commercial property warranty, you can also benefit by securing funding for the construction of the property, which can enhance the property’s value upon completion, as it will protect all parties who are contractually involved for 10 to 12 years.
What’s covered by a commercial property warranty?
The general specifics of the commercial property warranty will differ depending on your contract. However, there are several key features of commercial property warranties.
A commercial property warranty from ABC+ Warranty covers all contracted parties for a partial or full reconstruction if a structural element fails. The insurance policy should also be assignable, which means it can be transferred to any new landlords or tenants for the duration of the policy.
What’s not covered by a commercial property warranty?
There are several things not covered by a commercial property warranty, and they’re based around accidental damage or ‘Acts of God’.
Here’s what’s not included in a commercial property warranty:
- Wear and tear – Damage from normal wear and tear, rust, flaking paint, and stains.
- Weather damage – Damage from floods, earthquakes, lightning strikes, etc.
- Neglect – Damage caused as a result of poor maintenance.
- Vandalism or theft – Damage after parts have been vandalised or stolen.
- Poor workmanship – Damage caused by poor workmanship or defective materials.
- Acts of God – Damage from unpredictable natural events that can’t be prevented.
Why choose ABC+ Warranty for a commercial property warranty?
ABC+ Warranty can provide commercial property warranties up to a rebuild value of £10 million. They can cover pre-completion, buyers’ deposit risk during works, post-completion, and both major structural damage and contamination risk.
Additionally, medium to large developments could require a Road Bond, which developers are obliged to provide to obtain planning approval. These bonds guarantee the access roads to your construction site will be completed to an appropriate standard.
If you need them, you can also obtain road and sewer bonds alongside a commercial building warranty from ABC+ Warranty.