"Quality is never an accident. It is always the result of high intention, sincere effort, intelligent direction and skillful execution"
John Ruskin. 1819-1900 (Victorian Art Critic, Draughtsman, Social Thinker & Philanthropist)
Q undertakes a minimum of 8 inspections per property while they are under construction. This is for our insurance purposes to manage the risk to the underwriter. However, since this is about double the industry standard for number of inspections, your clients can take some comfort from a higher level of risk management compared with other industry providers.
Nothing contained within The Q Policy affects a policyholder’s existing legal rights and does not replace any existing legislation.
The Q Policy can be assigned to any party acquiring an insurable interest in a particular property. Contact Q to find out how to arrange this.
Policyholder options: the policyholder can include alterations & extensions in cover if they want, and they can also choose to extend the policy after the initial ten year period
Adequate cover: for residential properties sold by a developer, the maximum insured value of the policy, which will be shown on the insurance certificate, is the original purchase price of the property. Note - this is not limited to £1,000,000 for new build or £500,000 for conversions
Included in cover: the policy automatically includes for costs incurred in connection with a claim including loss of rent or alternative accommodation
Minimum Claim Value: we operate a minimum claim value of £1,000 for residential properties, which means your client will have nothing to pay towards a claim before it would be accepted, provided the value of the required works is over £1,000
Consumer protection: for residential properties sold by a developer, the buyer is covered by the Consumer Code for New Homes
FSCS: the underwriter is covered by the Financial Services Compensation Scheme - refer to policy document for further details
As a legal or lending professional, there are key things you will need to know about The Q Policy in order to advise your client adequately.
Underwriter: policies underwritten by A-rated insurers, including Lloyd’s of London (the world's specialist insurance market of over 300 years standing)
Mortgage Lenders: approved by all major UK lenders
Summary of cover: The Q Policy provides cover for a minimum of 10 years from completion of sale - this is split into:
If you have any questions about The Q Policy, please don't hesitate to call our customer services team on 0333 577 2800 or email [email protected].
2-year Customer Services Guarantee Period – where the developer is responsible for rectifying defects within the property
8-year Structural Insurance Cover – where structural damage arising from the design or construction of the property is covered by the underwriter
Under the Consumer Code for New Homes, deposits and pre-payments made by your client to a developer must be protected by the developer. This will be done through one of two routes: the developer holding the monies in a Client Account (this might be held by the developer’s solicitor); or, the developer will insure the deposit through The Q Policy.
Deposit protection is available under The Q Policy for residential properties – if your client’s developer indicates that this is the route they have chosen to protect the client’s deposit, you should check that the client has been provided with a Deposit Protection Insurance Certificate. Please contact us for further information if you are unsure.
Q will issue a Cover Note direct to the developer upon completion of our final inspection of a property which means we are satisfied with the standard of construction and that the property represents an acceptable risk for the underwriter. For residential properties, this will enable mortgage providers to release funds for the purchase of new homes. A property should not be conveyed unless a fully executed Cover Note has been provided by Q, specific to the unit in question – please contact us for further information if you are unsure.
Upon completion of the sale of the property, the Insurance Certificate will then be issued direct to the buyer and the conveyancer.