A New Build 10 Year Warranty, sometimes known as New Home Warranty, New Build Warranty or Structural Warranty, is a 10 year insurance policy that protects builders, property developers, contractors and owners against major structural damage.
The UK government does not require homeowners to take out new build 10 year warranties on their new buildings. However, most buildings are covered by this warranty as it is required by lenders. It is accepted by the Council of Mortgage Lenders and high-street lenders. As a homeowner, you should note that newly-built houses may easily experience structural damage because of latent defects, and these issues can be very expensive to fix. With a warranty, the insurance company will pay for the repair or even complete reconstruction.
The warranty on new build houses runs for a period of ten years. Usually, homeowners take out these warranties before the project starts, but you can also take them out when the construction is in progress. It is also possible to take out a new build warranty on a building that was completed a few years ago.
In most contracts, builders are liable for their work for two years after the end of the construction. That means they are obligated make agreed repairs to the building whenever required. This period is known as the defects insurance period. In these two years, the builder is obliged to cover issues with the workmanship, materials, HVAC, plumbing, and electrical systems. It is important to highlight and take note of any issues that occur in this period. It is also a good practice to keep copies of the correspondence.
For the remaining eight years, the insurance company will take care of any structural issues that arise in the building. It will pay for any agreed repairs or reconstruction needed. Some of the defects that will be covered by the new build 10 year warranty include:
• Damp penetration resulting from improper ventilation• Poorly fitted damp proof membrane• Poorly applied render• Paint flaking resulting from poor surface prep• Issues resulting from the use of inappropriate paint• Excessive draughts from the doors• Water coming in under the door because of a poor door fit or shrunk door panels• Damaged locks
The company may not cover the cost of living somewhere else while repairs are being made. The warranty also won’t cover household appliances, small cracks on tiles or walls, and components that have a manufacturer’s warranty. They will also not cover weather damage, natural degrading, or regular wear and tear on the building. Damp and condensation may only be covered if they are directly caused by the developer failing to comply with the standards of the warranty provider.
Once the construction is complete, you should still work with the builder to maintain the property. If you fail to maintain it adequately, the warranty provider may not pay for repairs on the building.Note that new build warranties are not meant to work as insurance plans. They only cover issues that were caused by the developer and for a certain period. Also, they wouldn’t pay for the damage or theft of the contents of the house.
When buying the warranty, it is important to go through its terms so that you understand when it will become active. Take note of when the 2 year defects insurance period will end and when the warranty will expire. Check the terms of the warranty to be completely clear on what it will cover and what will be excluded.
If the builder or developer fails to honour the new build warranty during the defects insurance period, you can take advantage of the dispute resolution scheme of the warranty. This will always be available if your warranty provider follows the Consumer Code for Homebuilders. After filing a complaint, the warranty provider will advise you on the best course of action. It is important to remember that the builder will only have to fix issues that are detailed in the agreement. In many cases, such complaints are solved without having to go to court.
It is a good practice to use a snagging list to remedy any obvious issues in the building before you move into the property. This minimizes the chances that you will have further problems later on.
A new build 10 year warranty is meant to cover the house and will simply transfer to the new owner of the building. It is important to remember that this warranty only covers the structures that were in place when the policy was taken out. If you have made loft conversions or other structures on the property, you have to inform the buyer of the house.
A key reason why many people choose Buildsafe is that the company has been in business for more than 40 years. This means it will be able to handle your warranty professionally and with good care. At the same time, you will have easy access to a team of experts who will advise you at every step.
The company also ensures that you get the best possible prices for a cover that meets your needs. Fill out this form to get a warranty quote with the best price guarantee.
Build Safe is a trading name of London Belgravia Brokers Ltd, Registration Number: 9069586 . Trading address is 60 Margaret Street, London, W1W 8TF. London Belgravia Brokers Ltd is an appointed representative of Ten Insurance Services Ltd, which is authorised and regulated by the Financial Conduct Authority.
60 Margaret StreetLondon W1W 8TF
020 3701 0422
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