For your protection this insurance underwrites the installing Contractor’s guarantee which is usually for defective workmanship and faulty materials. If the Contractor ceases to trade the insurance will take the place of the guarantee for the remaining term of cover.
Why is Insurance required?
A Contractor will show confidence in his workmanship by giving written guarantees ranging between 2 months and 10 years for the majority of home improvement contracts. If a fault arises during the guarantee period the Contractor would normally call to fix the problem at no charge. However, a contractor cannot give an absolute assurance as to the length of time he will be in business and therefore able to honour his guarantee. For this reason a professional Contractor should always provide an insurance cover, which will honour his guarantee in the unlikely event of him ceasing to trade.
What is covered?
If a fault is discovered in the original work and you cannot have this fixed because you find the Contractor has ceased trading you would lodge a claim. A report would be prepared by another Contractor to determine the cause of the problem and if the fault (s) would have been covered by the terms of the Contractors guarantee then the Insurance will meet the reasonable costs of rectifying the defects up to the limit of the original contract prices.
Is the cover transferable?
If the Contractors guarantee is transferable to subsequent owners of the property the insurance cover will also automatically transfer to the new owner.
What is the Policy term?
Usually the policy term is linked to the number of the years guaranteed buy the Contractor which for may trades is up to tem years and the cover commences from the date the contract is satisfactorily completed. Upon receipt of premium the Certificate of Insurance is issued.
Who protects me?
The insurance is underwritten by a major leading British Insurer of long standing who is DTI authorised, a member of the Financial Ombudsman Service and registered with the General Insurance Standards Council and the Financial Services Authority.
What happens if I do not have Insurance backing?
Hopefully the Contractor will always be there to respond to any problems that may arise over the next ten years and he would meet any remedial costs. However, experience shows that many Contractors fail for several reasons, the main being financial failure and retirement.
FENSA registered Contractors
Following changes to Part L of Building Regulation which took effect from 1st April 2002, Double Glazing Contractors who are register with FENSA can self-certify their double glazing work without the need to go through local Building Control. A condition is that insurance is offered on every contract carried out by the Contractor.