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"In 2019, the construction insurance guarantees market underwent significant change, with a number of insurers withdrawing from the sector. Early in 2020, there was a further reduction in the number of rated insurers able to provide insurance for waterproofing - and as of July 2020, we understand that only one A-rated insurer is writing new latent-defects policies."
The information provided on this page has been written as a guide to the current state of the waterproofing insurance sector, as we understand it, although this should not be considered as being professional advice.
Download The Newton Insurance BrochureThe term 'guarantee' is used in a number of ways to describe what are often very different forms of protection for the client. It is therefore important to understand the difference between a Warranty, a Guarantee and the various forms of Insurance that are available, and how these may be misunderstood, or their value overestimated.
Product-Only Warranties
A product warranty is a statutory requirement that provides for the replacement of the product if it is defective in any way. Whilst it is important to only choose products with a good product warranty from an established and reputable supplier, the product warranty specifically excludes defects that result from poor design, workmanship and/or the installation of the product.
All Newton products are supplied with product-only warranties, but be aware of the limitations. Unfortunately, in some cases these warranties are incorrectly sold as or misunderstood to be a guarantee for the waterproofing, and so it is important that the end-client is aware that the product-only warranty does not protect them from failures arising from poor design and/or installation.
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Installation Guarantees
Provided by reputable waterproofing contractors, this is the most important form of waterproofing guarantee. Supported by the contractors' insurance company, the guarantee protects the client from defects in the design and installation of the waterproofing. That these guarantees are supported by insurance is key, as the insurer will step in where the cost of the repair is beyond the financial means of the contractor. The client is therefore protected from the risk that the contractor liquidates their company to avoid the costs of the repair.
Other aspects of the repair, such as opening up and making good, will also be covered by high-quality installation guarantees, and the client should interrogate the guarantee to determine those with the best protection.
However, if the waterproofing contractor becomes insolvent then the guarantee dies with them. To protect against this risk, Insurance Backed Guarantees and Latent Defects Insurance, both explained below, provide protection for the client in case the waterproofing contractor is unable to honour the guarantee due to the company having ceased trading.
All Newton Specialist Contractors provide high quality installation guarantees that are underwritten by their insurers.
Limited Repair Guarantees
These are very common within the waterproofing industry and are often misunderstood as being meaningful installation guarantees. Careful reading of the small print shows that in most cases the 'guarantee' is limited to the value of the product purchased only; and in some cases, to the value of the product purchased to the area of the leak.
This means that the fixing of the leak is limited to an already established cost. If the repair is not successful for that limited cost, the attempt at repair is concluded, or the extra work and materials required to stop the leak become chargeable.
Insurance Backed Guarantees (IBGs)
Insurance Backed Guarantees only come into play when the waterproofing contractor is unable to honour the terms of their guarantee due to the company ceasing to trade.
Where a reputable contractor is used, such as a Newton Specialist Contractor, the repair will always be carried out under the terms of their installation guarantee (explained above). Since the NSBC scheme was started in 2002, no Newton Specialist Contractor has become insolvent.
If an insurance backed guarantee is appealing to you, it is important to note that not all policies are equal. Check the policy wording to confirm exactly what is covered and when, and check the rating of the insurer. The ability to offer an IBG is another requirement of being a Newton Specialist Contractor.
| The Newton Insurance Backed Guarantee |
 The Newton Insurance Backed Guarantee is a meaningful waterproofing insurance policy that provides protection in the event that the installing contractor ceases trading. The guarantee is underwritten by our A-rated insurer, meaning there is no better insurance-backed protection available from a UK waterproofing supplier, and making Newton the safest partner for supplying your waterproofing products. The guarantee is available on projects using Newton products installed by a Newton Specialist Contractor (NSBC). All NSBCs providing the Newton IBG will be audited by the insurance underwriter beforehand, and will incorporate the cost of the policy into their quote for the waterproofing contract. The premium is 2.5% of the contract value (the contract value should include VAT, and there is a minimum premium of £750) plus Insurance Premium Tax. Download Newton Insurance Backed Guarantee Summary |
| Specifying Newton Waterproofing WILL provide the following: | What you WON'T get from Newton or a Newton Specialist Contractor: |
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Integrally linked to Newton's insurance options is our unique specification tool, the Newton Waterproofing Index (NWI). The NWI has been designed to provide specifiers and designers with a system through which it is possible to accurately assess the level of risk and potential success involved in a waterproofing design. It does this with a simple and easy to understand score for every potential specification.
Only Newton provides this level of specification advice and assistance, all supported by our guarantees, as standard.
The Newton Waterproofing Index
All scores on the Newton Waterproofing Index are based on an assessment of both the type of structure involved and the type/s of waterproofing being used.
All scores have also been audited by an A-rated insurer, enabling us to offer clear guidance as to which designs offer the best protection, and which also qualify for our unique latent defects insurance.
Our library of Solution Sheets combine all key information for a waterproofing design into one resource, including 3D drawings, an outline specification, 2D details and NBS clauses.
Every solution also carries an NWI score, clearly indicating the level of waterproofing protection that it can provide.
Our staff are able to provide guidance for projects of all sizes, whether you require some general advice about damp or waterproofing, or support with technical drawings and specifications.
