The two are often mixed up — which can lead to awkward conversations mid-quote.
What an Insurance Backed Guarantee does
An Insurance Backed Guarantee sits behind the company written guarantee you give the homeowner. It’s a backup: if your company ceases to trade during the guarantee term, a valid claim still gets honoured — subject to the terms and conditions of the policy. It’s quick to arrange and doesn’t need the heavy inspection process a structural warranty does, because it’s insuring your guarantee rather than certifying the build itself.
What a structural warranty does
A structural warranty protects the building’s structural integrity. The foundations, load-bearing walls and roof structure. It typically runs 10 to 12 years and pays out for serious structural defects regardless of whether your company is still trading. For new dwellings and major structural work it’s often expected, and a mortgage lender may require one.
The difference at a glance
| Insurance Backed Guarantee | Structural warranty | |
|---|---|---|
| What it protects | Your written company guarantee | The building’s structure |
| What triggers a claim | Your company ceasing to trade during the term | A structural defect, whatever your trading status |
| Typical length | Mirrors your guarantee, up to the policy maximum | Around 10–12 years |
| Inspection process | Light — it insures an existing guarantee | Heavier — the build is certified |
| Often needed for | Reassuring homeowners; scheme membership | New dwellings, major work, mortgage lenders |
Which one does your job need?
It depends on the work. A single-storey extension or a refurbishment usually calls for a solid workmanship guarantee backed by an Insurance Backed Guarantee — that covers the homeowner’s main worry, that you might cease trading. A new self-contained dwelling, a large structural build, or anything a lender is involved in more often needs a structural warranty as well.
The honest advice to give a homeowner: the two aren’t either/or. On a significant build, an Insurance Backed Guarantee protects your promise and a structural warranty protects the structure. Together they cover both fears.
How to explain an Insurance Backed Guarantee to your customers
You can explain your company guarantee — what you’ll come back and put right, and for how long. You can tell them your quote comes with an Insurance Backed Guarantee. And you can hand them the material we give you, which explains the rest.
What you shouldn’t do is explain the insurance backed guarantee itself — what it covers, what it doesn’t, how a claim works etc.
And that’s to protect you.
You’re not an insurance intermediary, so you’re not authorised to advise on insurance, or to be seen to be advising on it.
That’s exactly why we give you the material.
Frequently asked questions
Is an Insurance Backed Guarantee the same as a structural warranty?
No. An Insurance Backed Guarantee backs your workmanship guarantee and pays if your company ceases to trade. A structural warranty covers the building’s structure for around 10–12 years regardless of your status.
Do I need both on an extension?
Often on a bigger or structural job, yes. A workmanship guarantee backed by an Insurance Backed Guarantee covers your promise. A structural warranty covers the structure. They solve different problems.
Which is cheaper?
An Insurance Backed Guarantee is generally quicker and more cost-effective because it insures an existing guarantee rather than certifying the whole build. Speak to a provider for figures on your work.
Does a mortgage lender need a structural warranty?
For new dwellings and major structural work, often yes. An Insurance Backed Guarantee doesn’t replace that requirement.
Join UK installers who provide FCA-regulated Insurance Backed Guarantees with every job through HomePro. Call 0800 131 0500 or join the HomePro network today.
Disclaimer: This post is for general information only. It is not financial, legal or insurance advice. While we take care to make sure the information is accurate, scheme rules, legal requirements and third-party details can change without notice — always check the latest position with the relevant scheme or official body before acting on anything here. HomePro accepts no liability for any loss arising from errors or omissions in, or reliance on, the information in this article. Insurance Backed Guarantees are subject to the terms, conditions and limitations of the individual policy.
