Understanding an Insurance-Backed Guarantee: A UK Homeowner's Guide

A standard warranty is only a promise from the company that did the work. An insurance-backed guarantee adds a separate insurance policy behind that promise, underwritten by an insurer rather than the contractor itself.

If the original company stops trading, the insurance policy still covers a valid claim, up to its own terms and limits. This is why it is considered stronger protection than a warranty alone.

Insurance-backed guarantees are most commonly offered for damp-proofing, timber and woodworm treatment, and double glazing, though they can apply to other work too. They are often arranged through a trade association or an insurance scheme the contractor is a member of.

When you sell a property, a buyer's solicitor may ask specifically for the insurance-backed guarantee document, not just the contractor's own warranty, for certain past work. This is because it remains valid regardless of whether the original company is still trading.

The insurance certificate is usually a separate document from the guarantee itself. Check you have both, and note the insurer's name and the policy or certificate number.

An insurance-backed guarantee can remain valid for many years after the work is done. Keeping both documents with the rest of your property's record means they are easy to produce, whether for a claim or for a buyer's solicitor.