What is covered under a construction warranty?

The level of cover will vary depending on the individual warranty. Generally protection covers the cost of repairs resulting from the developer not building in accordance with specified requirements. Some warranties also cover the cost of repairs due to non-compliance with building regulations and some also cover the cost of cleaning up the land in the event that the local authority takes enforcement action in respect of contamination. 

The duration of the warranty should be checked for example, all defects may be covered for the initial 2 year period and only major structural damage for the following 8 years. Second and subsequent owners will also benefit if defects are discovered during the warranty period. 

It is also advisable to check that the warranty protects the amount of the deposit in the event that the developer goes into liquidation.

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