Are you planning to transform a commercial property into a residential space or vice versa? Then a 10-year conversion warranty is a must-have safety net for protecting your investment.
This guide from CIR explains the fundamentals of conversion warranties, their importance for residential and commercial conversions, and how to secure the right warranty for your project.
WHAT IS A CONVERSION WARRANTY?
A conversion warranty is a form of insurance that provides financial protection against latent defects and structural problems that may arise in a converted property after the completion of the project.
Conversion warranties are specifically designed to cover the unique challenges and risks that are associated with transforming existing buildings into functional new spaces.
WHY IS A CONVERSION WARRANTY ESSENTIAL FOR RESIDENTIAL OR COMMERCIAL CONVERSIONS?
Converting residential or commercial properties often involves significant structural modifications, which can introduce new risks. Therefore, a conversion warranty can protect you against:
- Structural defects: Issues such as cracks, subsidence, or instability.
- Non-compliance with building regulations: Ensuring that the converted property meets all necessary standards.
- Financial losses: Covering the costs of repairs or remediation if issues arise.
WHAT DOES A CONVERSION WARRANTY COVER?
A typical conversion warranty covers a range of areas, including:
- Structural defects: Ensuring the stability and integrity of the converted building.
- Subsidence: Protecting against sinking or uneven settling of the property.
- Water ingress: Covering the possibility of leaks or water damage.
- Building regulations compliance: Verifying the conversion meets all relevant standards.
HOW MUCH DOES A CONVERSION WARRANTY COST?
The cost of a conversion warranty can vary depending on several factors, including the following:
SIZE AND COMPLEXITY OF THE PROJECT
Larger and more complex conversions may require higher premiums. As a general rule, the larger the property (and therefore its value) and the complexity of the project, the more it will cost to insure.
LOCATION OF THE PROPERTY
A conversion warranty is likely to be more expensive in areas that are associated with higher risk factors, such as flood zones or areas prone to subsidence.
INTENDED USE OF THE CONVERTED PROPERTY
The cost of a conversion building warranty depends on the intended use of the converted property. Prices vary depending on whether it is for residential, commercial or mixed-use purposes.
MITIGATE RISKS WITH A CONVERSION WARRANTY
A conversion warranty is a valuable investment for anyone undertaking a residential or commercial conversion project. It provides essential protection against structural issues and financial losses.
“Conversions and change of use projects are often complex and present unique challenges,” says Oliver Griffiths, Divisional Director at CIR. “As such, these types of projects expose developers and builders to different types of risks compared to standard new-build construction projects.
“The financial protection that comes with a 10-year conversion warranty from CIR provides invaluable peace of mind and security for all stakeholders involved in a conversion project. Our specialists can provide a tailored quote and an affordable structural warranty solution. With our support, selling or refinancing converted properties becomes a much smoother process,” Oliver adds.
WHERE CAN I GET A CONVERSION WARRANTY?
CIR is a well-established provider of specialised conversion warranties. Trusted nationwide, our 10-year conversion warranties are underwritten by specialist insurers, delivering tailored cover for your conversion project.
We’re also directly authorised and regulated by the Financial Conduct Authority (FCA), and are a code user of the Consumer Code for New Homes and an Associate Member of UK Finance.
Plus, with a conversion warranty from CIR, you gain access to our user-friendly online portal. The upshot is less paperwork and greater control, with all your policy documents and real-time updates stored in one convenient, digital location.
So you can access all your essential paperwork anytime, anywhere. Safeguard your conversion from foundation to finish and beyond with a conversion warranty from CIR.
For more information about CIR’s structural warranties, or to discuss your needs in more detail, please contact us today on 0800 059 0150.
