One of the many great things about buying a new build home is that they come with a 10-year warranty. This means buyers can have peace of mind, knowing that any structural issues or defects that arise will be covered, sparing them from unexpected repair costs.
But what does the new build warranty cover? And how do you claim it?
- What are new build warranties?
- How long is the warranty on a new build?
- What do new build warranties cover?
- What isn’t covered by new build warranties?
- Do new build warranties vary depending on the developer?
- Do I still need buildings insurance if I have a new build warranty?
- How do I make a claim on my new build warranty?
What are new build warranties?
A new build warranty is a type of insurance policy or guarantee provided to buyers of newly-built properties. It offers protection against structural defects caused by poor workmanship or faulty materials used in construction.
These warranties are designed to provide new homeowners with complete confidence, ensuring that any significant issues with the property will be addressed by the developer or warranty provider. This means that the buyer doesn’t have any premature repair costs to pay down the line.
How long is the warranty on a new build?
The standard warranty on a new build property is 10 years from the date of completion. This period can be broken down into two parts: an initial two-year period for developer liability that is covered by the National House Building Council (NHBC) resolution service, followed by eight years of NHBC cover for physical damage caused by failure to meet NHBC Technical Standards.
Is the warranty still valid if I buy a new build from the previous owner?
The structural warranty on a new build home stays with the property within the 10-year warranty period. So, if the property is sold within that time, the new owners will have the warranty passed onto them and will last for the remainder of the cover period. The warranty doesn’t reset or renew when it’s passed on.
If you’re buying a new build home ‘second-hand’, make sure that the seller’s solicitor gives you all the policy details and certificate.
What do new build warranties cover?
New build warranties provide two types of cover:
1. Two-year defect cover
The first two years of your 10-year new build warranty covers numerous issues, such as:
- Leaky windows that need resealing
- Faulty plumbing
- Faulty electrical wiring
During this time, the developer must come and fix these defects in line with the latest building regulations.
2. 10-year structural cover
The 10-year structural cover includes major structural defects to the property’s load-bearing elements. This includes issues with:
- The roof
- Load-bearing walls
- Property foundations
When you sign for a house, the intricacies of your warranty cover will be outlined in your contract. If you go for a reputable developer, you can trust you won’t be caught out, however, we recommend that you always read your contract carefully to know what you can and can’t claim for.
What isn’t covered by new build warranties?
While new build warranties provide extensive coverage, there are a few things that won’t be under warranty, such as:
- Defects that occur after the first two years
- Minor structural issues that are not caused by poor workmanship or materials
- Damp or condensation issues that are not caused by the building work
- Damage caused by the elements, e.g. bad weather
- Natural wear and tear
- Damage caused by poor maintenance
Do new build warranties vary depending on the developer?
Each developer will offer various protections when it comes to new build warranties, so we recommend that you always read the small print to see what’s covered and what’s not.
The largest new build warranty provider is the National House Building Council (NHBC), which is responsible for covering around 80% of new build properties. However, there are other schemes on the market, including LABC Warranty, Premier Guarantee, and Checkmate. All schemes are part of the Consumer Code for Housebuilders, which means their policies will be similar for the most part.
Do I still need buildings insurance if I have a new build warranty?
Absolutely, yes. When buying a new home, you still need building insurance even if it’s covered by the 10-year new build warranty. Unlike the warranty that comes with your new build, buildings insurance will cover issues caused by bad weather or subsidence, for example.
In many cases, your mortgage lender will require you to take our buildings insurance before lending you money for your property purchase.
How do I make a claim on my new build warranty?
As soon as you identify a problem with your new home, you should report it immediately. Delaying will only leave time for the problem to worsen and it may no longer be covered by your warranty.
In the first two years, all issues should be reported to your developers directly. Contact information should be readily available on your developer’s website. Make sure to keep a record of all communications regarding the issue in case you need to reference it later down the line, for example in the instance the issue persists.
For any structural issues that arise after the two-year mark, contact your new build warranty provider directly to sort it.
Having trouble contacting your developer?
If you’re struggling to resolve the issue with your developer, you can also take the issue to the new build warranty provider. The NHBC, the most common warranty provider, offers a free dispute resolution process to help you rectify property defects.
Still not satisfied? The next step is to make a claim through the Financial Ombudsman Service.
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