InSite | PRS Select: innovative and flexible Build to Rent cover

PRS Select: innovative and flexible Build to Rent cover

The Build to Rent landscape has changed over the years. By listening to feedback from funders and developers, it was clear that a new product was needed in addition to our existing PRS warranty product. PRS Select offers contractors, developers and operators options at both the beginning and during the period of cover.


A flexible product


A traditional residential structural warranty requires that the builder is tied into a defect insurance period, but with PRS Select that isn’t the case. And where a Tier 1 builder is involved, this makes a lot of sense.


PRS Select also allows much greater flexibility in terms of the excess applied which can translate into large reductions in premium. Whereas a traditional warranty is aimed at protecting individual leaseholders and therefore applies a small common parts excess, our new product will allow excesses up to £1million, depending on the size of the project.


And to add greater flexibility, if a future purchaser has a lower risk appetite for latent defects, the excess can be reduced at any point during the life of the policy. This does away with the need to pay for comprehensive level insurance up front just to cover off every possible scenario which may never materialise.


How PRS Select works


The following scenarios show the three possible outcomes provided by the flexible nature of PRS Select should the original owner wish to dispose of all or some of the units (in the case of Scenario 3). Please note: these changes are possible after year two of the policy. In all scenarios, paying of additional premium allows for a reduction in relevant excesses and changes to certification.


Scenario 1 – Sell entire asset to another BTR investor


Sell entire asset to another BTR investor


Scenario 2 – Disposal of all units to open market


Scenario 2 PRS Select


Scenario 3 – Sell some units and retain others


Scenario 2


What else can PRS Select offer?


To supplement the Build to Rent structural cover we can provide additional cover for:


  • mechanical and electrical defects
  • loss of rent
  • specific risk transfer for main contractor


If you’re ready to start your Build to Rent project, find out more about PRS Select.


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