A new-build or new home warranty is a ten-year insurance policy for newly built or converted properties. They protect the buyer of the home from any structural and related defects, helping ensure the buyer can get any repairs needed during the initial years of moving into their new home.

Naturally, you expect a new-build home to have less defects and potential issues than an older property, but problems may occur in the first few years of living in a home, and this is why new-build warranties are so important.

What Do New-Build Warranties Cover?

When you buy a new property off plan / before it has been built, your warranty will cover your deposit against the selling firm going insolvent. This means if your builder goes bust and your property is not started or it partially built, your warranty will cover the repayment of your deposit.

Once a property is fully built, the warranty is split into two periods. The periods are:

1. The defects insurance period – covering the first two years

2. The structural insurance period – covering years three to ten

During the first two years in your property if you find issues/snags with the work your builder has done, the builder is obliged to come back and fix them. Issues could be anything from windows not being sealed properly to defects with the piping effecting your home’s heating. Your warranty will lay out what specifically is covered in the defects insurance period.

During the second period, the builder’s responsibility changes. They are only responsible for major problems in the structure of the property. This will usually include foundations, external rendering, roofing, chimneys, ceilings and load-bearing flooring.

Smaller defects which occur during the structural insurance period are now the responsibility of the homeowner. This includes things such as issues with fixtures and fittings or problems with guttering. You should check your warranty policy so you have a full understanding of what it covers before contacting your builder with any issues or complaints.

What is the Consumer Code for Home Builders?

The Consumer Code for Home Builders has been in place since 2010 and applies to all companies trading as home builders registered with the UK’s main Warranty Bodies; NHBC, Premier Guarantee and LABC Warranty. The scheme lays out the consumer rights of home buyers and ensures builders adhere to certain practices and service levels. It provides protection to home buyers and ensures they are treated fairly throughout the buying process. All reputable property developers will abide by this code.

What is the New Homes Ombudsman Service?

The New Homes Ombudsman Service aims to provide dispute resolution to resolve complaints from homebuyers about developers. It is intended to bolster (and ultimately replace) the powers of the Consumer Code for Home Builders in the future, for properties in England. This Government scheme is in the final stages of development but is expected to officially launch during 2022.

How is a Warranty Different to Home Insurance?

Home insurance is provided based on likely risks to a property, it may cover both the building and contents. Almost every home is insurable, including older properties and the cost of home insurance varies significantly. Home insurance can provide cover for issues such as accidental damage, fire and theft of properties contents. New home warranty policies only relate to the structural integrity of a new home in the firs ten years, and any defects in workmanship during the two year defects insurance period.

Who Are the Leading UK Warranty Suppliers?

There are a number of different providers of home warranties, though three main bodies cover most of the new-build market in England. It is wise to retain their contact details during your warranty period and take a look at what their policy covers and what may or may not be included or excluded.

NHBC

Website: https://www.nhbc.co.uk
Head office: NHBC House, Davy Avenue, Knowlhill, Milton Keynes, Bucks, MK5 8FP

The National House Building Council is the largest provider of home warranties in the UK. On their website they assert that 80% of all newly built homes in the UK have a ten-year NHBC warranty. They are also the UK’s leading single approved inspector for building regulations and a reliable resource for all new-build related information and guidance.

They offer new home warranties under their Buildmark product, and this ensures both the initial developer liability period is in place for two years and later insurance policy remains in place for the final eight-year period. The NHBC is non-profit organisation, and all profits are reinvested into research and activities focused on improving new build standards in the UK.

LABC WARRANTY

Website: https://www.labcwarranty.co.uk
Head office: 2 Shore Lines Building, Shore Road, Birkenhead, Wirral, CH41 1AU

LABC Warranty works in partnership with Local Authority Building Control which makes it one of the best known providers for warranties in England and Wales. All warranties provided by LABC are underwritten by recognisable firms Aviva and AXA and they also have many reputable industry accreditations including HBF and RIBA. LABC are one of the founding members of the Consumer Code for homebuilders and are committed to excellence in service. They rely upon a network of over 3500 qualified surveyors to support warranty holders.

PREMIER GUARANTEE

Website: https://www.premierguarantee.com
Head office: 2 Shore Lines Building, Shore Road, Birkenhead, Wirral, CH41 1AU

Premier Guarantee are a highly regarded warranty provider who have been in the market for over 20 years. They work with a reputable panel of insurers and maintain a strong reputation and level of trust with all major mortgage lenders. They hire their own risk management surveyors who work with their clients to ensure warranty standards and building controls are met. They offer various types of cover to suit different schemes and types of property such as build-to-rent projects as well as affordable developments for rental. They also have a hand in the commercial property market and high value premises.

At Premier Snag our experienced and knowledgeable team of Snagging Inspectors can take the stress out of identifying what issues may or may not be covered by your new-build warranty. We will examine your home and identify any issues covered within your legal warranty rights, providing a comprehensive report for you to deliver to your home builder. Use our simple online booking system to book a snagging inspection today.

New-Build Home Warranty Basics