Comparison
Our Property Protection Pack comes with a valuation report, Property Healthcare Report and Hidden Defects Insurance Policy as standard. The Property Healthcare Report is an insurance assessment of the structural elements of the property while the Hidden Defects Insurance Policy is a perfect complement to your buildings insurance by providing cover for defects in the structure of the property that were hidden at the time of the assessment.
What about the lenders’ survey? Will a lender accept a Homebuyer Survey and Valuation? What is the difference between a building survey and a structural survey?
It is easy to get confused by the various surveys on the market and even easier to make assumptions about what these surveys do and don’t provide. Below are some classic assumptions and samples of the reports concerned.
Assumption:
Mortgage Lender Survey
(click for sample Lender Valuation report)
I am getting a mortgage valuation survey through my lender so this guarantees that the condition of my home will be okay.
No.
The lender valuation survey is for the lender to confirm that the property constitutes a reasonable security for the loan that they are advancing you to buy it. The focus is on value with only a minimal consideration of the property’s condition. Only the lender can rely upon the report in court. The lender will also want to know that you have buildings insurance although this will generally only cover you for damage to the property that has occurred after the policy was put in place. If a structural problem exists before the policy is put in place, be it obvious or hidden to a surveyor, you will not be covered.
Assumption:
Homebuyer Survey & Valuation and Building Surveys (See Sample HSV)
If I get a Homebuyer Survey and Valuation or a building survey and a problem is later found that the surveyor missed then I can always sue the surveyor to reclaim the cost of any necessary repairs and the loss in value of the property.
Unlikely.
A surveyor makes an inspection of the visible parts of a property only. If the surveyor does this diligently and misses the beetle infestation under the floor because the fitted carpets covered up any evidence of infestation, then they are not necessarily liable. Professional liability stems from negligence where the surveyor did something they should not have done or didn’t do something they should have. If you have the funds, time, energy and confidence to make a case for professional negligence, you may possibly get some of the repairs to the property paid for. But proving professional negligence is neither easy nor, frankly, very likely. Any diminution in value of the property will only be calculated based on the date you bought the property and not the current market value.
Assumption:
Buildings Insurance
(See example summaries of buildings insurance terms and conditions)
If I get buildings insurance I will be covered for all structural problems that may come up.
No.
You are covered for damage to the property that occurs after you have started the buildings insurance policy. If ‘latent defects’ can be shown to have been lurking in the structure at the time that the buildings insurance policy was put in place, these will not be covered. The Hidden Defects Insurance is therefore a perfect complement to you usual buildings insurance.
Questions: The Property Protection Pack
1 Once I get my buildings insurance will I need to renew my HDI Policy?
Yes.
The PPP HDI Policy provides on-going cover against hidden defects and damage that have occurred prior to the Hidden Defects Insurance audit. It is necessary to continue this cover until you are confident that no latent defects pre-dating your buildings insurance still exist.
2 The PPP includes 1 year’s HDI Policy cover. Can I renew this HDI Policy without another audit of the property?
Yes.
The HDI Policy can be renewed annually for up to 4 years without another audit.
