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8. INSURANCE
8.1 New Home Warranty Schemes
If the property has been constructed or converted in the last 10 years a new build warranty will need to be provided.
The following schemes are acceptable to the Bank:
a) NHBC;
b) Premier Guarantee (Including LABC);
c) Building Life Plans (BLP);
d) Checkmate;
e) Global Home Warranties (GHW);
f) International Construction Warranties (ICW);
g) Protek;
h) Buildzone;
i) The Q Policy (Q assure); and
j) Advantage HCI.
k) FMB Insurance /Build Assure
l) One Guarantee
m) Ark Residential New Build Latent Defects Insurance
n) ABC+ Warranty (10 year structural warranty)
o) CGICE (Casualty & General Insurance Company (Europe) Limited ((if the final certificate is dated 04/09/2019 or earlier
The limit of indemnity must be for an amount that is not less than 30% of the reinstatement value shown on the Offer Letter.
Any other new homes warranty schemes not mentioned in the approved list above will need to be submitted to the Bank's solicitors for approval.
A copy of the new build warranty and cover note should be sent to the Bank’s solicitor following completion.
8.2 Indemnity Insurance
For any indemnity insurance provided, the limit of indemnity (sum insured) must be the full market value of the property or the purchase price (whichever is higher). Please ensure that copies of all indemnity policies are sent to the Bank’s solicitor following completion.
8.3 Absent or Insolvent Landlords
The Bank will accept absent or insolvent landlords subject to Absent landlord insurance and Contingent building insurance are in place.
The above is only acceptable if all the following conditions are satisfied:
i. the level of cover afforded is for the full market value of the property;
ii. the bank’s interest is noted or a general finance providers interest clause is included;
iii. the policy contains a non-invalidation provision; and
iv. that the solicitor providing the COT considers that the bank’s interest is sufficiently protected by the policy and that the property will continue to have good and marketable title
8.4 Buildings Insurance
For freehold and leasehold properties, you must ensure that a valid buildings insurance policy is in place to cover against the Insured Risks and the interest of successors in title/leaseholders noted on the policy schedule for an amount that is not less than the reinstatement value shown on the Offer Letter.
The Bank does not require its interest to be noted on the policy.
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