IBG Questions & Answers
- Why is insurance required?
- What is covered?
- Is the cover transferable?
- What is the policy term?
- Who protects me?
- How can I protect myself against the cowboy operators?
- How can I claim?
Why is insurance required?
A contractor will show confidence in his workmanship by giving written guarantees ranging between 12 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 be 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 works 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 contractor's guarantee then the Insurance will meet the reasonable costs of rectifying the defects up to the limit of the original contract price.
Is the cover transferable?
If the contractor's 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 years guaranteed by the contractor, which for many trades is up to 10 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 (Department of Trade and Industry) authorised, a member of the Financial Ombudsman Service and registered with the General Insurance Standards Council and the Financial Services Authority.
How can I protect myself against the cowboy operators?
Many contractors set high standards of workmanship and materials and often a recommendation from a friend or colleague can be the best advice. It is good to look at the contractor's membership of trade organisations, as often they will have been set stringent levels of criteria to gain the title of Registered Installer. Many companies are now displaying the Quality Mark logo to show that they meet the required standards as set by the DTI scheme which has a mandatory insurance cover.
FENSA registered contractors
Following changes to Part L of Building Regulations which took effect from 1st April 2002, double glazing contractors who are registered with FENSA can self certify their double glazing work without the need to go through local Building Control. A condition of registration is that insurance is offered on every contract carried out by the contractor.
How can I claim?
If the fault is discovered in the original works after the contractor has ceased trading i.e. due to Liquidation, Receivership, administration or the winding up of the company due to bankruptcy, state retirement or death of the principal(s) and is therefore unable to honour their guarantee, 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 written guarantee then the insurance will meet the reasonable costs of rectifying the defects up to the limited of the original contract price.