Property Notepad -January 2010

3. ZURICH CEASES OFFERING BUILDING GUARANTEES

Zurich Insurance plc has announced that, following an internal review, Zurich Building Guarantee has withdrawn from the new home warranty and building control markets. This took effect on 30 September 2009 but was not widely publicised at the time. It will honour its existing commitments but is not taking on any new business.

Zurich was one of the main providers in the market for new home warranty products, alongside other market leaders such as NHBC and Premier Guarantee. Zurich has blamed the decline in the UK house-building market and the economic downturn for its decision, with this area no longer representing a viable market for the company.

Residential property developers will no longer be able to obtain the Zurich Building Guarantee for new sites. Buyers of a new residential property (or a property which has been converted) where a Zurich guarantee is already on offer should be able to obtain a policy and certificates in the usual way as and when buildings are started and completed. One of Zurich's competitors, Premier Guarantee, has announced that it will waive its own registration fees for any developers moving across to them from Zurich Building Guarantee.

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