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What does your new home warranty cover? -  #NHW17

Posted 16 May 2017 by Helen Christie

As part of New Homes Week (#NHW17) we're taking a look at what your new build warranty covers...

Buying a new home can be quite overwhelming at times, and there can seem like a huge amount of information you need to absorb and a lot you need to get sorted.

When you’re buying a new build home however, one thing you don’t have to worry about is protection, because all new homes in the UK are covered by a 10 year home warranty and insurance guarantee. Some providers will also offer an additional two years of cover, giving 12 years in total, as an option.

What is the warranty protection?

  • The warranty protection provides a very comprehensive cover against a range of potential problems, including any issues with the construction of the home itself.
  • The National House Building Council (NHBC) is the main provider of the warranty and insurance, with its Buildmark guarantee covering 80% of new homes – over 1.6m new builds. Companies such as Checkmate, Premier Guarantee and LABC operate similar schemes.
  • The warranty is free to the customer, the housebuilder takes out the warranty with one of the approved providers.

What does the warranty cover?

  • For anyone buying off-plan, your deposit will be protected if the builder goes out of business before your home is complete. If this happens, either your deposit will be paid back or the home will be completed.
  • During the first two years, any problems found in a new build home that don’t meet the technical requirements of the warranty provider must be sorted by the builder – at no cost to the homeowner.
  • For years three to 10, the home is protected under an insurance policy against most structural defects and issues that arise in areas such as double glazing, staircases and internal plastering.
  • On top of the warranty, new build homebuyers are covered by a Consumer Code.

What is the Consumer Code?

  • The Consumer Code was brought in in April 2010.
  • The Code states that the housebuilders must provide honest sales material and realistic expectations on when the home will be finished.
  • The Consumer Code also means that homeowners must be given post-sales service, as well as details for the appliances etc. in the home.
  • For those buying off-plan, the housebuilders must make sure that the buyers have all the relevant information on important matters such as the layout and positioning in their off-plan home.
  • If there is a dispute between the homeowner and the housebuilder about an issue that isn’t under the warranty cover and has led to the buyer spending money, the Code has an independent resolution service to resolve the case.

What is not covered by the warranty?

  • General wear and tear.
  • Cosmetic damage.
  • Damage that occurs as a result of the homeowner failing to maintain the property.

All of this is put in place to help build trust between the builders and the buyers, and to give new build homeowners peace of mind when they are buying their new home, which is not something they would get if buying an older property.

 

 

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