Zurich Building Guarantees is launching a warranty for factory-built homes that splits insurance liability between the developer and manufacturer responsible for a home's structure.
Under the new warranty, if a significant structural element of a building is manufactured the supplier will take a proportion of the insurance liability, rather than the developer having to take the whole liability. The supplier's liability will be around 60-80%. Factory-build technology covered by the warranty could range from steel or timber frame to fully modular homes.
According to Zurich there will be no cost increase in the warranty. "We are not seeking to increase our income with this approach - we will assess the risk and allocate the premium for each individual case," said business development manager Helena Sokolowski.
Source
Building Homes
