What the 10-Year Warranty Actually Covers
When buyers hear the term 10-year building warranty, they often assume it guarantees complete protection from all problems for a decade. In reality, this type of warranty primarily focuses on structural integrity. Cosmetic issues, such as minor cracks or faulty fittings, are generally only covered in the first two years. These early years fall under the builder’s obligation, where they are expected to fix snagging issues and workmanship defects. From year three onward, the warranty becomes insurance-backed, offering cover for serious structural defects such as issues with foundations, load-bearing walls or roofs. It’s also important to understand that builder guarantees are not the same as a formal building warranty, which involves a third-party insurer backing the cover.
Are All New Homes Legally Required to Have a 10-Year Warranty?
Despite common belief, there is currently no legal requirement in the UK for a new home to come with a 10-year building warranty. However, it has become an industry standard, particularly because most mortgage lenders insist on this cover before approving a loan on a new-build property. As a result, most reputable developers include a 10-year building warranty as part of the purchase.
The requirement varies depending on the type of build. For new-build homes sold on the open market, a 10-year warranty is almost always provided. Self-build projects may not automatically include this unless the owner arranges it separately, especially if the property will be sold or mortgaged in future. For conversions such as office-to-residential transformations, a structural warranty is also advisable, though not universally applied unless resale or financing is anticipated.
In essence, while it’s not compulsory, the absence of a warranty could seriously limit your options, especially when trying to secure a mortgage or resell the home later.
Major Warranty Providers in the UK Market
NHBC Buildmark, LABC Warranty, Premier Guarantee, Checkmate
Several established providers dominate the UK market for building warranties, with NHBC Buildmark, LABC Warranty, Premier Guarantee and Checkmate among the most recognised. These providers have robust procedures, clear claims processes and often work closely with developers from the start of construction. Choosing a warranty from a major provider can give buyers more confidence, especially as many are approved by the UK Finance Council, which sets lender standards.
How Coverage Varies Between Providers
Although the principle of a 10-year building warranty is fairly standard, each provider has slightly different inclusions, exclusions and claims thresholds. For example, some may require a higher minimum repair cost before accepting a claim, while others might exclude certain areas such as balconies or drainage systems unless specified. Reading the fine print is essential so you understand the full scope of the policy you’re relying on.
What to Check Before You Exchange Contracts
Before committing to a purchase, ask for a copy of the warranty documentation. It should clearly name the provider, outline what is covered in years 1–2 and years 3–10, and include details about the claims process. Your solicitor should review the warranty to ensure it’s valid, active and transferable. If there are any exclusions or unusual clauses, these should be clarified before you move forward with the sale.
What Happens If a Home Has No Warranty?
Purchasing a home without a building warranty introduces significant risk. Mortgage lenders may refuse to finance the purchase and you could be left unprotected against major structural issues. In some cases, buyers may negotiate a lower price to reflect this gap in protection. It’s also possible to obtain a retrospective building warranty. It is important to note that retrospective warranties often involve additional inspections and come at a higher cost. Remember, a building control sign-off only confirms the home met minimum regulations at the time of construction. It does not offer any financial protection should issues arise later.
How to Make a Claim Under a 10-Year Warranty
Reporting During the Initial 2-Year Developer Liability Period
During the first two years after completion, any issues related to poor workmanship or materials should be reported directly to the builder. This includes snagging issues like doors not closing properly or uneven flooring. The builder is expected to rectify these at their own expense.
Making a Claim for Major Defects in Years 3–10
From year three onwards, the responsibility for major defects shifts to the warranty provider. Claims typically relate to structural failures such as subsidence or issues with load-bearing elements. These claims must meet a certain threshold value to be eligible.
Evidence, Inspections and Resolving Disputes
To support your claim, you will usually need to provide photographs, a description of the issue and potentially an independent assessment. The insurer may send their own inspector to verify the defect. If the claim is valid, they’ll cover repair costs as per the terms of the policy. If there is a disagreement, an ombudsman or legal advice may be required to resolve the matter.
When Warranties Get Voided or Denied
Unapproved Alterations or Lack of Maintenance
Making unauthorised changes to your home, such as removing load-bearing walls or extending the property without proper approval, can void your warranty. Likewise, failing to carry out essential maintenance, like clearing gutters or fixing leaks, may result in claims being denied.
Exclusions You Need to Read in the Small Print
All policies contain exclusions. Common exclusions include weather-related damage, wear and tear or issues caused by homeowner negligence. Some providers also exclude specific parts of the property, so it’s important to read and understand every clause.
What Happens If the Developer Goes Bust?
If your developer becomes insolvent, the insurance-backed element of your building warranty still protects you. That’s the value of choosing a warranty provider with strong financial backing. However, any pending snagging issues from the first two years could become more difficult to resolve without direct access to the builder, making early reporting even more important.
Always Verify Warranty Coverage Before Buying
Don’t assume a home is covered simply because it’s new. Ask for the building warranty documentation early in the buying process. A solicitor can help flag any gaps or irregularities, particularly in custom or self-build situations. Truly understanding your cover helps you make informed decisions, avoid unexpected costs and gain peace of mind.
Looking to secure a 10-year building warranty for your next property? Get in touch with Buildsafe for trusted advice and tailored cover that gives lasting protection.
