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Insurance backed guarantee & deposit protection
What is an insurance backed guarantee?
An Insurance Backed Guarantee underwrites your contractors statutory guarantee, it covers defective workmanship and/or faulty materials in the event that the contractor ceases to trade or files for liquidation/bankruptcy.
The guarantee also covers deposits paid upfront to contractor before work commences, Let’s say you paid a deposit to secure home improvement work. Then the worst happened – for whatever reason the trader ceases trading before starting the work.
The good news is that the deposit is protected and arrangements will be made by the insurer for the completion of the contract or refund of the deposit.
All of this means that you can enjoy additional peace of mind for your project.
HIP has covered over
1,188,403 policies
worth £4.313 billion
What’s covered under the HIP Guarantee?
Deposit coverage
Protection against hidden defects and construction defects
Work completion in case of general contractor default
Transference of warranty
Mediation in case of dispute
Coverage for all types of renovation projects above £20,000
How it works
Appoint a contractor through Loomin
Once your project has been scoped, request quotes and select a contractor on the platform
Pay your deposit through the Loomin platform
To move your project forward, you need to pay a deposit to the general contractor
Receive a certificate of deposit
Once paid you will receive a receipt from the contractor and also a certificate from the insurer.
Activate your 10 year guarantee
Activate your guarantee with the insurer and enjoy peace of mind against defects for the next 10 years
Receive a work-completion certificate
Once the work is completed receive a completion certificate from building control
Begin construction
Sign contracts, arrange a start date and get your project underway with your chosen contractor
Statutory Warranty vs Insurance Backed Guarantee
You are automatically covered under the Consumer Rights Act (2015) which provides basic consumer protection against all transactions in England & Wales. Consumers can get a refund or replacement if the goods or services not received or received and are not good quality, durable, safe, or in line with expectations.
However, as LTD companies have limited liability, if the company files for liquidation or bankruptcy there is usually no legal recourse, which is where many homeowners become stuck.
An Insurance Backed Guarantee warranty provides you with added protection should this happen and it also ensures that replacement of defects, repairs, maintenance work, and corrections are done within a set timeline.
Statutory Warranty
Insurance Backed Guarantee
(Up to £200,000)
*Court action required*
*Court action required*
In the event of a dispute
Before
(Some conditions apply
- up to 25% / £300,000)
During
After
Fast deadlines
No lawyer fees
Peace of mind
Up to 25% / £300,000
Other Services
Book your free consultation
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