New build home warranties and builder guaranties
Key new build cover
New build homes usually come with a structural warranty and builder guarantee. However, new build warranties don’t replace buildings insurance. It’s important that homeowners take out a separate building insurance policy to ensure protection for elements not included in the warranty.
2-year builder defects cover
Unlike properties on the resale market, new build homes often offer a 2-year builder guarantee to fix minor defects as part of the snagging process.
Since homes are built by hand, it’s possible that snags will arise, or you may spot something missed during the builder’s own checks.
However, instead of discovering a hidden history of issues from a previous homeowner that you have to pay to put right, your home builder will organise for snags and minor defects found in the first two years to be resolved at no cost to you.
10-year structural warranty
New build warranties are insurance policies that home builders take out to cover structural defects on your property within a given time period — usually 10 years.
A 10-year structural warranty ensures that any major issues with the construction of a home, such as defects in the roof, walls, or foundations, will be fixed at no cost to the homeowner.
Additionally, warranties usually cover the deposit you put down to reserve your home if your home builder were to go out of business.
Warrantee providers
Developers use different warranty providers, although those commonly used include:
- NHBC (National House Building Council)
- LABC (Local Authority Building Control)
- Premier Guarantee
The structure of the cover is usually similar across the warranty providers. However, it’s important that you familiarise yourself with what’s covered by the provider for your home.
What isn’t covered by new build warranties?
New build warranties and your builder guarantee cover defects and issues caused as a result of faulty materials or workmanship.
It’s also worth noting that warranties don’t cover issues arising from natural disasters or severe weather. With that in mind, new build warranties shouldn’t replace traditional home insurance policies.
Structural warranty and builder guarantee exclusions include:
- General wear and tear
- Cosmetic issues (e.g., minor cracks or paintwork imperfections)
- Damage caused by homeowner misuse
- Appliances and fixtures not installed by the builder
How to make a claim
Any issues discovered within the first two years of homeownership should be raised with your home builder. You’ll find information on how to raise issues on your builder’s website and usually within the paperwork provided when you bought or moved into your home.
New build Consumer Codes
Home builders are committed to driving standards and continually improving customer care. To support this, the majority of home builders in England and Wales voluntarily register with a consumer code.
Several Consumer Codes exist for new build homes. Which one you are covered by when buying your new build home will depend on which code your builder is signed up to:
- The New Homes Quality Code covers all aspects of a new build home purchase, from your initial experience in the sales office through to the aftercare you receive up to 2 years after completion.
- The Consumer Code for New Homes sets out mandatory requirements for registered developers to ensure you experience high-quality trading practices when buying your home.
- The Consumer Code for Home Builders aims to make the home-buying process fairer and more transparent for purchasers.
The New Homes Ombudsman
The New Homes Quality Board (NHQB) was set up in 2021 to oversee reforms to the quality of new build homes and customer service.
Under its code, the NHQB introduced a range of new requirements for new build homes to provide customers with enhanced protection. It also set up the New Homes Quality Ombudsman service to help customers resolve issues their developer is unable or unwilling to solve.
You will be protected by the NHQB code and ombudsman if you purchase a home from a developer registered with the board. You can find this information on a developer’s website.
Homeowner experiences
“We had a little problem with the lock on the garage door and they came within the hour and put a new lock on. The warranties that come with NHBC give us peace of mind.”