This policy covers defects caused by failures in design, workmanship and materials for up to 12 years from issue of certificates to practical completion.

Reflecting a traditional structural warranty the policy is split into a Defects Insurance Period (DIP) in the first year and a Structural Insurance Period (SIP) for the reminder of the policy length.

Defects (as defined in the policy) are the responsibility of the builder during the DIP period, however if the builder fails to rectify defects in the first year we will cover this for you meaning your investment is secured from day one.

Why choose PRS cover?

Cover during the DIP period covers a range of items, including many elements of M&E and tolerances. This can also be extended up to two years.

This policy also covers against issues in design, workmanship and materials, but differs in that it is a full risk transfer policy from day one with no defects insurance period tied to the builder.

The greatest benefit of this policy however is its long-term flexibility which includes:

1. Significant reduction in upfront premium - due to variable excesses
2. Reduce excess - If the asset is sold to another BTR operator you can reduce the variable excess based on the purchasers appetite
3. Flexibility for the cover to be transferred from one overall certificate into individual residential certificates should you decide to sell to the open market during the insurance period of 10 or 12 years.

Why choose PRS Select cover?

This policy is well suited to a developer or investor comfortable with the initial defects liability provided directly by the builder but still wants the flexibility in later years to change the policy cover should they wish to exit.