New homes are attractive to prospective buyers as they offer modern amenities and often have the latest trends in architectural design. They are built using the most recent building codes, safety rules, and construction methods. In general, they are of high quality and won’t need much upkeep for the first few years. Energy costs are kept to a minimum because modern building methods and supplies are used.
Because new homes tend to lack obvious flaws, many people think they can save money by opting out of home insurance. However, you will quickly realise that new build insurance is one of the most important covers you can get.
In this blog post, we discuss everything you need to know about new build, building Insurance.
Do You Need New Buildings Insurance on a New Build?
New build insurance is essential for homeowners of new build properties. It can cover the cost of repairing or rebuilding the property in case of a fire, flood, or other natural disasters. With a new buildings insurance policy, you will enjoy peace of mind as the insurance company will cover all repair costs.
This insurance policy will also cover the gates and fences, as well as other outbuildings. It also includes private garages, driveways, patios, swimming pools, and other playing sections. If you have installed solar panels on the property, the policy can cover the cost of replacing them in case of damage.
New build buildings insurance does not provide coverage for theft or accidental damage, so it is recommended that you must take precautions to ensure that your home’s contents are covered through contents insurance.
Contents insurance usually offers protection against damage caused by natural disasters, accidents, theft, and vandalism. You can purchase additional accidental damage cover if you have pets that can damage your items. Regular home accidents are also covered under the accidental damage insurance policy.
If you are renting the property, you can purchase contents insurance on its own. Your landlord will have to pay for the building insurance.
Other important add-ons you should consider getting include the following:
- Home emergency cover
- Legal cover
- Bicycle cover
It is possible to get buildings insurance and contents insurance separately. However, combining your buildings and contents insurance may end up being less expensive than purchasing them separately.
Should I Buy New Build Insurance if I Have a New Build Warranty?
New homes are usually covered by the 10-year new build warranty. This is meant to protect the homeowner in case the building develops structural issues resulting from poor workmanship or faulty materials. These warranties won’t pay for issues that are caused by natural events or poor weather. This is where home insurance comes in. It will cover any damage caused by storms, floods, fires, and other natural disasters.
Also, new-build warranties won’t protect items like your television, jewellery, and cash. These are covered under the contents policy of the new build insurance. It is important to remember that neither the warranty nor the insurance plan will cover any damage resulting from normal wear and tear.
When Should I Get Home Insurance for a New Build?
You will need to purchase home insurance for your building when you are completing the purchase of the property. Mortgage lenders will usually require buyers to take up these insurance policies as soon as they exchange contracts with the builder or property developer. This means you will need to arrange building insurance long before the date of the exchange. You should plan for the policy to start on the date of completion of the sale.
Can I Get Buildings Insurance Before Completion?
Insurance companies will usually require you to complete the house purchase before you take out the policy. This is why it is difficult to get buildings insurance before the house is completed. If you need to insure a building that isn’t completed, you can take out construction insurance. This type of insurance comes in many forms, including contract work insurance, liability insurance, employer’s liability insurance, and product liability insurance.
The type of insurance policy you choose will determine the level of protection you will get against certain incidents and outcomes. If you will need to hire workers, the government will require you to take out employer’s liability insurance. This policy pays the compensation costs for employees who can no longer work because of illness or injury. Liability insurance, like all the other construction insurance policies, is optional. It will cover any damage to people or property.
Can You Insure a New Build House?
You can protect new build houses using regular home insurance, and you will often find it cheaper to insure these buildings. This is because new houses are usually built with the latest safety measures. The fact that they are built with new construction materials also means that there is a lower chance of an incident and therefore a claim.
FAQs
What is a new build buildings insurance?
New build buildings insurance is a form of home insurance that is taken out on buildings that were completed within the past two years. It is usually made up of buildings insurance and contents insurance.
Is buildings insurance the same as the new home warranty?
No, these are two different policies. Buildings insurance is meant to protect the home in case of natural disasters. On the other hand, a new home warranty will only cover damages that result from poor workmanship or faulty materials.
Is buildings insurance a legal requirement in the UK?
No, homeowners in the UK aren’t required to take out buildings insurance. However, you will find it extremely useful. It will cover the cost of repairing or rebuilding your home in the case of a disaster.