New build home insurance / warranties for new build homes aren’t legally required, but if you don’t have one your prospective buyers will struggle to reach an agreement with lenders. The vast majority of property developers will have a warranty agreement already in place to appease mortgage providers.
Property developers that put a new build warranty in place not only help to provide peace of mind to buyers but also to their lenders. When buying an older home you’d expect some issues to crop up along the way.
When someone buys a new build home they expect to find no issues, unfortunately, that is not always the case. It’s always best to cover yourself and your properties as best as possible. You never know what structural defects will pop up along the way.
What Does a New Build Warranty Cover?
Typically, during the first two years of the warranty, the buyer will live within the property making the developer responsible for remedying any defects encountered. After the initial two years to catch any immediate snags a further eight years of structural insurance is usually provided.
New build warranties also tend to cover contaminated land and deposit protections if the buyer has bought a home that has not been built yet. The deposit protection covers buyers if the builder goes insolvent.
Remember to read through your terms and conditions fully to understand your specific warranty coverage.
Who Provides a New Build Home Warranty?
Generally, property developers will provide a new home warranty from a provider such as BuildSafe.
BuildSafe has an extensive network of insurance providers, we compare our providers to ensure you get the best coverage and price. Once you request to get a quote we’ll start the ball rolling.
We are a client informed and led team of experts with over 70 5 star reviews on Trustpilot. Buildsafe manages the process of acquiring a new build home warranty from start to finish with warranty providers so you don’t have to do the heavy lifting.
How Long do Warranties Last?
New build warranties are usually a 10-year policy on new or renovated land/properties.
It’s important to remember to read the small print of any contract or warranty you sign up to so you fully understand the exact cover you’re getting.
Common issues with a New Build Homes
Every new home is different and can have multiple hidden issues that buyers are unaware of. This isn’t always the case however it is important to maintain a certain level of knowledge for common defects in your developments.
Some common issues are:
- Improper installation of weep vents
- Sufficient drainage around the foundations
- Shrinkage caused by poorly made concrete
- Being unable to close doors
- Windows not being installed properly so they let a lot of heat out
- Poorly installed heating and cooling systems
- Bad and overlooked paintwork
What Should I Do if I Have a Defect?
When a homeowner moves into a new build property they should look to create a ‘snag list’ and report them to their developer. A snag list is a list of defects that you have found in a property.
Usually, developers are obligated to amend any defects reported to them as stipulated in the new build home warranty agreement.
How Does a Warranty for a New Build Differ From Home Insurance?
A warranty helps to protect the builder or property developer whereas insurance covers the new build home buyer. Most lenders such as banks will not provide funds to prospective buyers without a warranty or insurance policy
Should you Take Out Home Insurance?
Home insurance is designed to protect a home from any damage from ‘freak events’ like fires, earthquakes, floods or anything else considered ‘an act of god’. Not the usual wear and tear a home accumulates when it’s lived in.
Home insurance isn’t a legal requirement but in most people’s opinions it’s a necessary evil. Homeowners should also consider contents insurance.
If your home is flooded, for example, home insurance would take care of the repairs to the building itself whereas contents insurance would pay to fix a faulty washing machine and other possessions.
Will the New Build Warranty Affect Your Mortgage Application?
A new build warranty will likely affect a mortgage application, most lenders will not lend to a prospective buyer without one.
Read The Fine Print
The ‘fine print’ as we call it is essentially the terms and conditions of your agreement with a warranty provider. These layout the exact way your warranty will operate. Some warranty providers use the fine print to sneak in loopholes for hidden fees or getting around work.
BuildSafe puts its clients first meaning we’ll do everything we can to ensure a client understands all of the legal jargon and provide as much information as possible before a client signs a contract.
Making sure you know exactly what your hard-earned money is going to be paying for.
Are you a property developer, contractor or builder working on some freshly developed properties? Get a quote from BuildSafe where you could save up to 30% on your coverage.