Why Are Insurance Backed Guarantees Important?

As a consumer it is important to know that you are fully covered should anything go wrong when you are having home improvement works carried out by any trade. Unfortunately the reality is that in most cases you are not, either because the deposit has not been properly protected, or if, you have been offered an Insurance Backed Guarantee policy it could be at the wrong time....usually months after the job has been completed. A guarantee, should be offered up front to you the consumer, this way you should not be open to financial loss should anything go wrong over the course of the project, because you will be protected and therefore eligible to make a claim should you need it.

Most companies wouldn't risk their reputation by not offering a IBG (Insurance Backed Guarantee), they will choose to carry the right credentials and accreditation's and therefore offer what so many others do not - a service that is creditable and guaranteed. In the highly unlikely event that they were to cease treading over the next 10 years, your project would still be covered, as long as you have completed your IBG.

What is covered? A deposit protection is insurance for the deposit that you the consumer pays to secure the work to be carried out on your home. This insurance should minimally cover a deposit of up to 25% of the agreed price with the installation company or ￡7,500 which ever is the lesser. The policy covers the consumer for a period of up to 90 days from the date you pay the deposit.

For example: If you have paid a deposit to an installation company and they then ceases to trade due to liquidation, receivership, administration or winding up the business due to bankruptcy, state retirement or death of the principal(s), the deposit is either refunded to you the consumer in full, or the work is completed by another company at the balance agreed price.

In the unlikely event that the installation company should cease trading, the IBG would cover the following:

"If a fault is discovered in the original works after the contractor has ceased trading i.e. due to Liquidation, Receivership, administration or the winding up of the company due to bankruptcy, state retirement or death of the principal(s) and is therefore unable to honor their guarantee, you would lodge a claim. A report would be prepared by another contractor to determine the cause of the problem and if the fault(s) would have been covered by the terms of the contractors written guarantee then the insurance will meet the reasonable costs of rectifying the defects up to the limited of the original contract price."

What is the Policy Term? Usually the policy term is linked to the number of years guaranteed by the contractor, in most cases this is 10 years and the cover commences from the date the contract is satisfactorily completed. Upon receipt of your signed agreement the Certificate of Insurance is issued.

This guarantee given should be valid the whole time the company is trading and so any valid defects occurring would be corrected by that company, within the 10 year guarantee period.

Important Information: In general, the company used for Insurance Backed Guarantees will not provide customers with a personal recommendation as to whether a deposit protection policy is suitable for their needs.

The Insurance Backed Guarantee company should be authorised and regulated by the Financial Services Authority.

JeaP GB Home Improvements Limited is a London based Double Glazing & Composite Door Specialist Installation Company. Our customers rate our service & products very highly and we have a good number who recommend out work regularly. We offer a range of uPVC products and services, including Double Glazing Installations [http://www.jeapgb.co.uk/], Composite Doors, uPVC Doors, Sliding Slash Windows and Repairs and Refurbishments.

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