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1 About BLP BLP is an authorised insurance intermediary based in the City of London and acts as an underwriting agent of Allianz Global Corporate & Specialty AG, UK Branch, to provide New Home Warranties and Commercial Property Insurance products. BLP is owned by Thomas Miller, a world class insurance services business at the forefront of the insurance industry for over 120 years. BLP is authorised and regulated by the Financial Services Authority. Latent Defects Insurance BLP has been providing latent defects insurance to the Commercial and Residential markets since Our products have evolved in line with development trends and we are therefore arranging cover for an increasing number of large, mixed-use developments. Our products lend themselves especially well to commercial developments, but also to commercial developers who are crossing over into the residential market. They also offer clear benefits to funders, including: Creating a more secure investment Protecting and enhancing asset value Increasing certainty of outcome where latent defects occur Protecting yield and income stream in the event of temporary loss of rental income. BLPSECURE (New Home Warranty*) offers the following benefits: Competitive, fair and transparent pricing structure Flexibility and widest choice of cover available Approved by the majority of mortgage lenders Free and simple scheme registration: no bonds or deposits required A flexible approach to technical appraisal No defect liability period (with the exception of water ingress in year 1) A flexible approach to construction type with particular expertise in innovation Additional Component Cover available for non-structural items Residential and mixed use developments Free access to the BLP Life Cycle Costing online tool Excess applies per event, not per unit. 1 of 2 Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST ABOUT071009

2 We are approved by the DCLG as a designated warranty provider under their Warranty Link Rule (where Building Control is undertaken by an Approved Inspector). BLP is also accredited by the Housing Corporation and is named in their Scheme Development Standards as an approved assessor of Modern Methods of Construction. BLPASSET (Commercial Property Insurance) offers the following benefits: A first-party, bespoke insurance policy for up to 12 years Cover for non-structural components as well as structural elements M&E cover for premature failure of components such as lifts, heating and ventilation systems and internal fittings Long term security provided by Allianz Global & Corporate Specialty AG, UK Branch No requirements to prove fault Full value cover Increased marketability of the property Business interruption covers available Cover can be extended to include the whole design and construction team. * When we use the term Warranty we are referring to an insurance policy that covers certain risks of defects occurring in a property. The word Warranty is used only because that is the term with which clients may be more familiar when buying building defects protection. 2 of 2 ABOUT071009

3 Why choose BLP? All BLP products are underwritten by Allianz Global Corporate & Specialty AG, UK Branch, which carries an AA (Very Strong) financial security rating. BLP provides building defects insurance right across the construction sector, including: Residential developments Commercial property developments Housing Association projects PFI and LIFT projects Mixed developments (i.e. any combination of all of the above) BLP provides a wide range of insurance products, including: Residential warranties with standard structural cover and non-structural extensions Contaminated Land Extension Cover (irrespective of who carries out building control) Commercial property defects insurance with non-structural/m&e cover Business interruption risks Subrogation waivers, giving all party protection against defect liability in furtherance of team-working Tenants of commercial properties named as beneficiaries, enabling smoother agreement on commercial leases and protection of retention funds BLP offers in-house technical expertise, including: Added value risk management during design and construction, enhancing the quality of the final build In-house type-approval and accreditation, enabling insurance on modern methods and innovative construction Whole-life cost and maintenance plans that dovetail with the non-structural insurance cover The construction industry s only database on component and systems durability, available online the CDD Free access to the online Life Cycle Costing tool This summary note does not form part of the cover and does not constitute an offer of insurance or other service from BLP or Allianz Global Corporate & Specialty AG, UK Branch; it has been written to explain the cover. All quotations and insurances are subject to terms and conditions. 1 of 2 Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. WHY071009

4 BLP is easy to work with, because: We do not require builder registration We do not require bonds or indemnities The defects insurance cover starts from completion or legal exchange The insurance is priced according to choice of cover, not the builder s record or history Proposal forms for residential schemes can be submitted online There is no builder s defects period (except for water ingress in year 1) On technical sign-off risks are transferred to insurance, so there is no recourse against the builder We wish to build a strong relationship with our clients BLP is flexible, we offer choice and we aim to enhance quality. We look forward to working with you. 2 of 2 WHY071009

5 BLPSECURE: A Summary of Cover The insurer is Allianz Global Corporate & Specialty AG, UK Branch. Summary of cover BLPSECURE is a 10 or 12 year policy, running from first exchange of contracts on a completed property. The cover meets the cost of putting right the Premises in the event of a Defect occurring in the Structural Parts. A Defect is one that may damage or destroy the property whilst it is insured, and has to manifest during the cover period. The Structural Parts includes the parts of the Premises which are essential to the structural stability and weatherproofing, such as walls, foundations and roof. In the event of a structural claim, additional areas of cover include: The costs of demolition to allow rebuilding; Design and other fees in connection with putting right the building; Additional costs that arise from the need to change design or construction to comply with new regulations, or with changes to regulations since the property was originally built; Costs of removing, storing and re-installing the contents of the property; Cost of providing alternative accommodation during the period of the (re-)construction or repair. BLPSECURE: limits and excesses The Sum Insured will be the re-build costs of the property, expressed as a monetary value in the schedule to the policy; The limit for the additional areas of cover is 10% of the Sum Insured, up to a maximum of 250,000; The standard excess for any claim is 1,000 per any one loss. This summary note does not form part of the cover and does not constitute an offer of insurance or other service from BLP or Allianz Global Corporate & Specialty AG, UK Branch; it has been written to explain the cover. All quotations and insurances are subject to terms and conditions. Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. SEC040808

6 BLPSECUREPLUS: A Summary of Cover The insurer is Allianz Global Corporate & Specialty AG, UK Branch. Summary of cover This product offers cover which is wider than a standard structural warranty, and includes: A BLPSECURE policy covering Structural Defects in the Premises. The BLP Component Failure Extension, designed to meet the costs of premature failure of non-structural component parts within their predicted lifetime. Some examples of components include kitchen units, boilers, electrical wiring and pipe work for gas, water, heating and ventilation. The predicted lifetimes of component parts are listed in the Component Life Schedule that comes with the policy. The Structural Parts includes the parts of the Premises which are essential to the structural stability and weatherproofing, such as walls, foundations and roof. BLPSECUREPLUS: excess applicable to the BLP Component Failure extension The amount you can claim for Component Failure reduces over the lifetime of the part - the older the part, the less you can claim toward its replacement. This summary note does not form part of the cover and does not constitute an offer of insurance or other service from BLP or Allianz Global Corporate & Specialty AG, UK Branch; it has been written to explain the cover. All quotations and insurances are subject to terms and conditions. Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. SECPLUS040808

7 BLPASSET: A Summary of Cover The insurer is Allianz Global Corporate & Specialty AG, UK Branch. Summary of cover BLPASSET is a 1 st Party Inherent Defects Insurance that responds to a defect in design or construction on the part of any contractor or consultant in the build team on a commercial development. The insurance covers both the structure and the M&E Components for premature failure. BLPASSET is a hassle free solution to repairs which doesn t rely on proof of negligence or collateral warranties, providing an opportunity for the design or build team to protect their own PI insurance record. The cover terms are bespoke to each product, and the policy can run for up to 12 years from completion of the build. An optional Waiver of Subrogation is available, so that the negligence of any member of the design and build team that manifests in a latent defect will be covered. High limits and variable excess options are available, to enable a fit with the clients risk management portfolio. BLPASSET can be purchased in conjunction with the BLPSECURE range of residential warranties, enabling a one-stop shop for mixed developments. Extensions are available to respond to business interruption risks. This summary note does not form part of the cover and does not constitute an offer of insurance or other service from BLP or Allianz Global Corporate & Specialty AG, UK Branch; it has been written to explain the cover. All quotations and insurances are subject to terms and conditions. Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. ASSET010309

8 Contaminated Land Extension: A Summary of Cover The insurer is Allianz Global Corporate & Specialty AG, UK Branch. Summary of cover This extension will cover the costs of carrying out agreed remediation work following the service on the Insured of a Statutory Notice by an Enforcing Authority in relation to the Premises. This extension also covers the costs of work necessary to prevent a Statutory Notice being served on the Insured. The cover also includes costs necessary to restore the Premises following work carried out to comply with a Statutory Notice, or to prevent a Statutory Notice. The period of cover is the same as that which applies to the relevant BLPSECURE or BLPSECUREPLUS policy. Additional limits and excesses The limit of liability is 250,000 per dwelling each and every claim, and in the aggregate, and is further limited to 20 million any one development or site. All other limits and excesses under this extension are those that apply to the relevant BLPSECURE or BLPSECUREPLUS policy. Additional exclusions The Insured cannot claim for any loss, liability, cost or expense arising from: Building or similar work carried out during the period of insurance that brings about Contamination Naturally occurring substances in the ground, such as radon Anything present in the building Fines or penalties Blight This summary note does not form part of the cover and does not constitute an offer of insurance or other service from BLP or Allianz Global Corporate & Specialty AG, UK Branch; it has been written to explain the cover. All quotations and insurances are subject to terms and conditions. Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. CLAND040808

9 Mortgage Lender Approval The following lenders include BLP as an acceptable warranty provider: Abbey Accord Mortgages Alliance & Leicester plc Allied Irish Bank (UK) Bank of Ireland Home Mortgages Ltd Bank of Scotland Barclays Birmingham Midshires Black Horse Specialist Mortgages Bradford & Bingley plc Bristol and West plc Britannia BS Catholic Building Society Chelsea Building Society Cheltenham & Gloucester plc Chesham Building Society CHL Mortgages Church House Trust plc CIS Mortgage Maker Ltd CIS Ltd Clydesdale Bank plc Coventry Building Society Dudley Building Society Ecology Building Society First Trust Bank Godiva Mortgages Ltd Halifax plc Halifax Loans Ltd Heritable Bank Ltd HSBC* Ipswich Building Society Intelligent Finance Kensington Mortgages Leeds Building Society Leek United Building Society Lloyds TSB Scotland plc Lloyds TSB Bank plc Manchester Building Society Mansfield Building Society Market Harborough Building Society Marsden Building Society MBS Lending Ltd Melton Mowbray Building Society Monmouthshire Building Society Mortgage Express Ltd Mortgage Express (No 2) National Counties Building Society National Westminster Home Loans Nationwide Building Society Northern Rock plc Norwich & Peterborough Building Society Nottingham Building Society Paragon Mortgages Ltd Platform Preferred Mortgages Ltd Principality Building Society Scotlife Homeloans (No 2) Ltd Scottish Widows Bank plc Skipton Building Society Standard Life Bank plc St James Place Bank The Co-operative Bank plc The Mortgage Business plc The Royal Bank of Scotland plc Direct Line Mortgages The Royal Bank of Scotland plc First Active The Woolwich Tipton Cosley Building Society UCB Home Loans Corporation Ltd Ulster Bank Ltd Verso West Bromwich Building Society West Bromwich Mortgage Company Ltd Yorkshire Bank Yorkshire Building Society * HSBC will consider approval of the BLP product on a case for case basis only. MLA Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST

10 BLP Technical Review Process A guide for clients of Zurich Building Guarantee General BLP has been providing lender-approved new home warranty cover for a number of years. We refer to these products as the BLPSecure and BLPSecurePlus policies. The Plus refers to the product with wider cover it responds additionally to the risk of premature failure of non-structural components. The BLPSecure product is the one which is closest to the Zurich Standard 10 warranty. It is suitable for speculative build developments as well as schemes for RSLs. It is also the product relevant for refurbishment or conversion schemes, as well as for self-build schemes. BLP accepts schemes up to 1 year post completion, and we also accept registrations for schemes which have already started construction. Providing cover on part completed blocks is also relatively straightforward for us, except where another warranty provider already has issued policies on some of the units within that block. This guide describes the technical review process relevant to the BLPSecure and BLPSecurePlus products. BLP also issues policies on non-residential schemes, but the process for those projects is different and is not covered by this guide. We believe that the senior technical managers at Zurich Building Guarantee have sufficient knowledge of BLP s processes to offer an informal opinion, should that be appropriate, of whether you would be well-served by working with us. For our part, we are happy that they offer an opinion since we are confident that we share the objectives of providing a flexible, responsive service that enables you to deliver high quality construction, whoever you are and whatever your chosen method of construction. Technical Requirements BLP does not publish its own standards or requirements there is no BLP Technical Manual. Our Technical Review checks for compliance with industry standards and good building practice as relevant to the specific form of construction. If you wish to continue referring to the Zurich Technical Manual, then we are happy for you to do that. 1 of 3 Registered in England No Registered office: 90 Fenchurch Street, London EC3M 4ST. TECH051009

11 Where we differ from the process at Zurich Building Guarantee We do not require a Developer s Warranty Period, except in respect of water ingress in year 1. This means that the BLPSecure product responds to all other defects in the first two years, as well as through the remainder of the policy period. The practical effect of this cover difference is that we, perhaps, spend more time doing a design check than might be the case with Zurich; this is work that we do, not you, but you do have a part to play in helping us understand design issues. It is important that you understand that we will, generally, not ask for any information beyond that reasonably required to indicate design intentions and to ensure these can be achieved by contractors. We will carry out Site Workmanship Checks at the following stages: Ground floor preparation and brickwork to dpc; Frame erected and external masonry or cladding up to first floor level (dependent on form of construction adopted); Roof framing complete; First fix complete (but only if the product selected is the Plus policy); Completion inspection. We will generally not carry out a visit to check adequacy of foundation bearing and depth, since we will always seek necessary assurance from the Building Control inspector for this aspect of the project. The Process itself On registration, BLP will assign a Technical Consultant dedicated to deal with the scheme from inception through to completion. It would improve communication between us if you could also identify a single point of contact to be responsible for dealing with our consultant. The consultant will review all relevant information as soon as it becomes available, to allow any potential concerns to be brought to your attention in advance of work commencing on site. Depending on the size and complexity of the scheme, and also on the point at which it is registered, we will determine the number of site visits and agree dates in advance with you. We will issue a Summary Report at each stage, highlighting any concerns and detailing information still required for consideration; the summary report can be delivered both electronically and in hard copy. Your designated contact should ensure that any queries are answered and advise when outstanding information might be available. Additionally, a copy of the full background report can be made available if required. 2 of 3 TECH051009

12 We are keen to present a process whereby we and you are jointly responsible for ensuring that the process moves smoothly and keeps pace with the contract programme, and that queries are resolved to both parties satisfaction. Please note that it is our obligation to our underwriters, and to the lenders who approve our product, that items where there are outstanding queries or identified defects are excluded from cover (by specific reference on the Certificate of Insurance). This is something that could, clearly, affect the sale of a property. It is in everyone s interest to ensure that design concerns are resolved before the specified works are constructed on site and that workmanship problems are corrected. You can be assured that we will do as much as we can to prevent any policy exclusions. Information Requirements New Build Conversions/ Refurbs Programme detailing anticipated start and completion dates and key stages of the construction process, (external walls to dpc level, roof truss erection, etc. Condition survey of the building as used to inform scope of works. Specification detailed description of the construction methodology, materials to be used in the project, etc (unless fully detailed on the drawings) Scope of works detailed description of works proposed to retained parts of the building, for example repointing of brickwork, repairs to windows and overhaul/replacement of roof coverings. Plans, sections, elevations and detail drawings as submitted for Building Control approval. Soils report to justify the adequacy of the foundation design. Structural engineer s designs and calculations for foundations, beams, retaining walls, etc., as submitted for Building Control approval. Specialist sub-contractor s designs and calculations as appropriate for example timber frame kit, roof trusses, pre-cast flooring, etc. Mechanical and electrical details heating and plumbing layouts and materials specifications (only required for SecurePlus Product). Plus option Plus option 3 of 3 TECH051009