CGU Insurance has announced their withdrawal from the Home Warranty Insurance market. This follows Lumley's withdrawal earlier this month. The insurers' decision indicates the volatility of the current marketplace and now only leaves three recognised insurers in this segment. Due to this market we predict some pricing volatility from the remaining insurers. BEA strongly urges all of its builders to include premiums as a PC item. 

Home warranty insurance policies issued from 19 May 2009 onwards, enable home owners to be able to make a claim under the policy where the licence of a contractor they are using is suspended because the contractor failed to comply with a money (compensation) order in favour of the home owner made by a Court or the Consumer, Trader and Tenancy Tribunal. This will reduce delays in getting homes completed or defective work rectified because insurance claims can be made more quickly.