How long does a new build warranty last?
Any construction project requires the relevant insurance policy to cover unforeseen circumstances. The same applies to new-build homes.
A new build house warranty is essential to keep you insured should the worst happen. While you wouldn’t expect too many issues with a brand-new home, problems can occur unexpectedly, and having the relevant insurance policy can help ease any worries and stress.
What is a new-build house warranty?
A new-build house warranty is an insurance policy that covers major structural defects in a newly-built property.
This type of warranty is acquired by the developer of the construction project and provides peace of mind for the homeowner should any structural issues arise in future.
How long is a new-build warranty?
A standard new-build housing warranty lasts for 10 years from the date on the completion certificate but is split into two parts.
The first part of a new-build warranty is an initial two-year developer liability period. The second part covers the remaining eight years, and this makes up the insurance period.
How does the new-build warranty work?
While a new-build warranty lasts for 10 years, it does work differently in the first two years from years 3 to 10.
In the first two years, liability for any structural defects falls on the feet of the developer or builder of the property. If issues are found within the first two years of the insurance policy, liability falls upon the builder or developer to fix them.
Any problems – such as faulty windows or pipes – must be fixed by the developer or builder, and must be done free of charge.
In the second part of the policy, the developer/builder doesn’t have as much liability for issues discovered. This is because any smaller problems are due to general wear and tear rather than a structural problem.
The new-build warranty will only cover issues with structural problems with the foundations, ceiling, roof, chimney, etc. For these issues in the eight-year section of the insurance policy, the homeowner must contact their provider rather than the developer.
Can new-build structural warranties be transferred to different owners?
Simply put: yes.
If a homeowner decides to sell their new-build property before the 10-year insurance policy expires, it simply transfers to the new ownership.
A new-build structural warranty is connected to the building, so it isn’t invalidated if the original owner sells and moves elsewhere.
Even if there are only two years left on the warranty period when a new buyer moves in, it will still cover any structural issues until the 10-year point.
However, it’s important to note that the insurance policy doesn’t renew; it simply runs the remainder of its existing term.
What is not covered by a new-build structural warranty?
Several things are not covered by a new-build housing warranty, including:
- Wear and tear over several years
- Damage caused by poor weather
- Problems resulting from extensions or conversions after the completion date
- Inadequate home maintenance
- Minor cosmetic issues that do not affect the property’s structure
- Damp and mould – unless this has happened as a result of poor workmanship or materials during construction
Do you need home insurance even with a new-build warranty?
It’s wise to ensure you have home insurance to cover every eventuality.
While new-build warranties cover large, structural problems, they do not fund repairs for damage from fire or flood, for example.
As a result, it’s still important to ensure you have home insurance.
