Buyers purchasing new build properties are being urged not to rely on warranties alone as a guarantee against potential risks.
Most new build homes are sold with the National House Building Council (NHBC) Buildmark guarantee, which guards owners against issues with the property’s structure resulting from its construction.
This warranty last 10 years and covers any problems caused by the property developer such as issues or damage to roofs, chimneys, external walls, internal stairs, glazing, and foundations.
But according to comparison site, Confused.com, this is not a substitute for home insurance.
Indeed, obtaining a buildings insurance policy will be a condition of your mortgage lender.
But, aside from this, it will also fill in the gaps that warranties cannot provide.
Matthew Harwood, Confused.com home insurance expert, said: “Most new builds come with a warranty – the National House Building Council Buildmark guarantee. This lasts ten years and covers any issues with your home’s structure resulting from poor workmanship.
“This warranty only covers you for issues caused by the developer. You’ll need home insurance to ensure you’re covered for anything else, like flooding, fire, or subsidence.
“Most mortgage providers also insist you have home insurance on a newly built property.”
Can you get a specialist home insurance policy for new builds?
If you are purchasing a new build home, there is no specific policy for this type of property.
You will, however, need your buildings insurance, which covers the physical structure, and also contents insurance which provides protection for your possessions.
How to get newbuild home insurance with no postcode
One problem with new build homes is that it can take a while to obtain your postcode and you will need this detail to insure your property.
Harwood explained the completion of the build may be some time after the exchange of contracts, so the postcode of your new home may not be recognised.
“The developer is usually responsible for registering the postcode of new builds,” he said, “so you can ask them to provide you with the postcode.
“Your developer should register a new build with Royal Mail. But contacting Royal Mail yourself can be worthwhile to avoid delays and get your home insured as soon as possible.”
When should you take out home insurance on a new build?
Harwood said you should take out home insurance so it begins as soon as your home becomes legally yours because your mortgage lender will need you to have it in place from the moment you exchange contracts.
“Usually, things like plumbing, electricity, and gardens aren’t covered in the National House Building Council Buildmark guarantee you receive after purchasing a new build, Harwood said.
“Getting buildings insurance is a good idea to cover you for any problems related to these parts of your home, should they arise. The average buildings insurance claim is £6,191. You might have to pay this yourself if you haven’t taken out insurance for your new build.”
He added: “It’s a good idea to shop around and find the best deal for you and your home so you have the right coverage at an affordable level.”
