The Zurich has closed its Zurich Building Guarantee business, covering new home warranties and building control.

This decision dates from 30 September 2009, but has not been widely publicised. Existing commitments will be honoured by Zurich.

If you are acting for a buyer, then the Zurich guarantee will still apply (and Zurich will still issue policies and certificates in the usual way on sites that have been registered with it – so the important point is to check that a new build has indeed been registered with Zurich). As far as buying properties that are less than ten years old (and which have the benefit of a Zurich guarantee) there should be no problems and no special enquiries or precautions are needed.

As far a seller/developer is concerned, it all depends on whether a site has been registered with Zurich. If it was registered in time, then Zurich will honour that commitment and issue a certificate in due course. If it was not registered in time, then the client will have to look elsewhere for cover (eg NHBC; BuildingLifePlans; Building and Land Guarantees; LABC New Home Warranty; or Premier Guarantee). For more information see www.zurich.co.uk/buildingguarantee.