Premier Guarantee introduces flexible Build to Rent coverage

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Building warranty expert, Premier Guarantee introduced a new flexible and innovative Build to Rent cover, PRS Select

Hidden Defect Insurance (LDI) is typically underwritten by Rental Construction Operators (BtR) to protect against defects in design, workmanship and materials. It also ensures that mortgage lenders’ requirements for a structural guarantee are met if operators wish to sell the asset in the open market.

Like the professional liability market for construction-related activities, the LTD market has seen many challenges over the past couple of years, but there is good news. Premier Guarantee is launching a new product that brings choice and innovation to the market: PRS selection.

Building for rent has changed over the years. Listening to feedback from backers and developers, it was clear that a new product was needed in addition to our existing PRS warranty product. PRS Select offers contractors, developers and operators options at the start and during the period of coverage.

Flexible construction coverage for rent

A traditional residential structural warranty requires the builder to be tied to a period of defect insurance, but with PRS Select this is not the case. And when a level 1 builder is involved, that makes a lot of sense.

PRS Select allows much greater flexibility in terms of the deductible applied which can result in large premium reductions. While a traditional guarantee aims to protect individual tenants and therefore applies a small deductible for common rooms, this new product will allow deductibles of up to £ 1m, depending on the size of the project.

For more flexibility, if a future purchaser has a low appetite for the risk of latent defects, the deductible can be reduced at any time during the life of the contract. This eliminates the need to pay for full insurance up front just to cover all possible scenarios that might never materialize.

How PRS Select works

The scenario graphics that follow should help explain the options available with PRS Select.

build to rent cover


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