Contractor Insolvency: Housing Association Requirements
February 18 2021 By Mitch Cookney
Often a requirement from Housing Associations, Contractor Insolvency offers the Housing Association financial security, as it protects their investment during construction against the insolvency of their partnered contractor.
The Construction sector in recent years is seeing an ever-increasing number of contractors becoming insolvent due to a variety of concerns in the economy. This is why Contractor Insolvency is becoming such a key line of cover for Housing Associations.
A Contractor Insolvency extension to a structural warranty offers clients protection where, due to bankruptcy, insolvency or fraud, the contractor fails to complete the new home in accordance with the requirements set out and the client suffers costs due to additional costs over and above the contract sum. Policies generally cover 10% of the contract sum or the cost to have the new home completed, whichever is the lesser.
However, given the exposures, underwriting criteria has drastically changed and the traditional and more experienced providers of structural warranties are becoming less inclined to offer such cover.
We have access to the whole market when it comes to Latent Defects and can work with you and your Housing Association requirements to find a solution.
Contact us today for a “whole of market” review to see what options are available to you.