New Homes NHBC Buildmark Cover

An attraction of buying a new home is the warranty and cover that comes with it. However many people are unaware of the protection which is available. The cover can be split into three parts, between exchange and completion, the first two years of occupancy and the remaining eight thereafter making a total of ten years.

Exchange to Completion – your exchange deposit is covered up to 10%, or £100,000, whichever is the lower, if the builder  becomes insolvent, has acted fraudulently, or is unable to complete consistent with their contractual obligations.

Years 0 -2 –  There is a builder warranty which covers any defects not related to  wear and tear or general maintenance. This part of the cover runs from the date of legal completion of the first sale of the home (date of entry in Scotland) or, if later, the date NHBC agrees the home substantially complies with NHBC’s requirements.

Under this part of Buildmark, the builder is responsible for any repairs necessary. You must report any faults to the builder in writing as soon as possible, and you should keep a copy of any correspondence in this regard. If the builder fails to rectify the problems, NHBC offers a free Resolution Service which aims to resolve disputes between you and the builder. Under the Resolution Service, NHBC can also help arrange the remedial work needed to put things right if the builder fails to do so. If the builder is insolvent, then NHBC insures his obligations.

Years 3 -10 –  A further eight years of insurance cover, up to a maximum of ten years, covers construction not effected to NHBC standards. You are also covered if a statutory land notice is issued regarding contaminated land.  Some policies also cover building not completed to Building Regulations standards.

NHBC Buildmark covers you against the full cost, if it is more than £500 at April 1999 prices (indexed), of putting right any physical damage to the home caused by a defect in any one of the specified parts of the building. Buildmark covers:

foundations

load-bearing walls

non load-bearing partition walls

wet-applied wall plaster

external wall rendering and external vertical tile hanging

load-bearing parts of the roof

tile and slate coverings to pitched roofs

ceilings

load-bearing parts of the floors

floor decking, screeds and staircases where these fail to support normal loads

retaining walls necessary for the structural stability of the home, its garage or

other  permanent outbuilding

multiple glazing panes to external windows and doors (in converted properties

they must be newly installed at the time of conversion)

below-ground drainage for which you are responsible

defective chimneys and flues causing a danger to the health and safety of occupants

From year 3 NHBC  does not cover items such as gutters, central heating, internal plaster finishes, fixtures and fittings etc. . Nor does it cover you against any claim that is insured elsewhere, or by your household insurance policy ( e.g. storm damage to roof tiles).

NHBC Buildmark is an insurance policy which covers you against specified risks which could be very expensive to put right. It does not provide cover for general wear and tear, condensation, normal shrinkage, damage arising from failure to maintain the property, or minor faults which first appear after the second year. For full details you should read your copy of the NHBC Buildmark booklet which specifies the cover provided.

When you move in, you should also receive NHBC’s ‘Guide To Your New Home’ from your builder. It contains useful information about ‘running in’ your new home.

Only builders and developers who can demonstrate financial security and technical competence can be registered with NHBC. They must follow the NHBC Rules and build homes to NHBC Standards of construction

NHBC Standards are the definitive standards for house construction and conversion in the UK and have been developed over many years. They are set by a committee representing all relevant organisations interested in improving the quality of new and converted homes. Builders, consumer organisations and professional institutions are represented on the committee. They take into account the Building Regulations, British Standards and NHBC’s own claims record of defects.

Contact Hannells for the range of New  Homes that we are offering

Gary Longden