New build warranties: what do they cover?

Whether you’ve just moved into your new build home or you’re thinking about buying one, understanding the warranty that comes with your home is important.

One of the advantages of buying a new build is that it typically comes with a 10-year warranty. When buying a new build home, you’d expect fewer issues, but this isn’t always the case, the warranty gives you peace of mind as a buyer.

Here’s a breakdown of everything you need to know about new build warranties.

A new build warranty is essentially an insurance policy that protects you if problems arise with your newly built home. It’s taken out by the developer but designed to protect you as the buyer, ensuring that any defects caused by poor workmanship, faulty materials, or design issues will be fixed without you having to pay.

Most mortgage lenders require new build properties to have a 10-year structural warranty before they’ll approve your loan, so you’ll find one comes standard with virtually every new build home.

The warranty exists to protect you, the buyer (and the mortgage lender) because building a home involves hundreds of different trades and processes, and sometimes things can go wrong.

You might see new build warranties called different names, but they’re all a similar product:

• New Home Warranty or New Build Warranty
• Structural Warranty
• Buildmark Warranty (NHBC's specific product)
• Latent Defects Insurance or Inherent Defects Insurance

New build warranties are typically split into two periods, here’s what’s covered in each period: 

For the first two years, the developer must fix any problems caused by poor workmanship or faulty materials. This includes:

• Windows or doors that don’t seal properly or leak
• Faulty plumbing (leaky pipes, poor water pressure)
• Electrical problems (faulty wiring, switches that don’t work)
• Heating issues (radiators not working, boiler problems)
• Kitchen units that don’t fit properly
• Cracks in walls or ceilings from poor workmanship

Essentially, if something doesn’t work as it should or wasn’t built to the required standard, the developer is liable to ensure it is fixed at no cost to you.

After year two, coverage becomes much more limited. The warranty only covers major structural defects, such as:

• Foundation problems or subsidence
• Issues with load-bearing walls
• Roof structural defects
• Major issues with external walls or rendering

Minor defects like a dripping tap, squeaky door, or small crack in non-structural walls become your responsibility after the first 2 years.

It’s equally important to know what new build warranties don’t cover, such as:

• Natural wear and tear
• Weather damage
• Problems caused by poor maintenance
• Damage you cause yourself
• Alterations or renovations you make
• Damp or condensation (unless caused by builder error)

Understanding these limitations helps set realistic expectations about what you can claim for and when. Always read the small print to check exactly what your warranty covers.

You don’t get to choose your new build warranty provider – this decision is down to the developer when they register the site. Different developers offer different protections, so it’s important to check what’s covered.

The National House-Building Council (NHBC) dominates the market, covering around 70-80% of all new build homes with their Buildmark warranty.

If your property has an NHBC warranty, you’ll benefit from their established process and extensive experience handling claims. Most conveyancers and mortgage lenders are very familiar with NHBC policies.

Other well-known new build warranty providers include LABC Warranty, Premier Guarantee, Checkmate, and Build-Zone.

While the basic coverage is similar across providers, the details can vary. Some charge excess payments when you make a claim, while others don't.

Hopefully you won’t need to trigger your warranty, but if you do spot a defect knowing what to do is crucial. It’s important to report your issue as soon as possible.

For any problems during the first two years, your first point of contact should always be the developer or builder.

Most developers will have a customer service team or aftercare department specifically for handling these issues. You’ll typically find their contact details on their website or in the paperwork you received when you moved in.

You must allow a reasonable time period and access to your property to fix the issue.

Once you’re past the two-year mark, the developer is no longer responsible for repairs, including any structural issues you may experience. If this happens, you should contact the warranty provider directly. The warranty provider will arrange for an inspection and, if they accept the claim, will either instruct contractors to carry out repairs or provide cash settlement.

Always keep records and timelines

Documentation is crucial for any warranty claim:

• Report problems as soon as you notice them – delays can invalidate your claim
• Keep written records of all communications, including dates and times of phone calls
• Take photos of defects before they get worse
• Save copies of any emails or letters
• Don't attempt DIY repairs, as this could void your warranty

Remember, if you let a problem get worse by not reporting it promptly, the warranty provider may refuse to cover the additional damage.

Yes, absolutely. A new build warranty only covers defects caused by poor workmanship or structural issues – it won’t help if your home is damaged by fire, flooding, storms, or theft.

Buildings insurance covers all these other risks that are outside the builder's control. Your mortgage lender will also require buildings insurance as a condition of your loan.

Sometimes developers don’t respond to warranty claims or warranty providers dispute your claim. When this happens, you have a few options for getting help. 

If your developer won’t respond

During the first two years, if your developer ignores your calls or refuses to fix problems, you can escalate to the warranty provider. Most warranty companies offer a free dispute resolution service to resolve these cases.

You can also complain through consumer codes like the New Homes Quality Code, which most major developers are signed up to.

If the warranty provider disputes your claim

If your warranty provider refuses to accept your claim or you're unhappy with their response, you can take your complaint to the Financial Ombudsman Service. This is free to use, and they specialise in insurance disputes.

The ombudsman can order the warranty provider to pay your claim if they find in your favour, though you should try to resolve things directly with the provider first.

Yes, new build warranties stay with the property regardless of who owns it. If you're buying a property that's less than 10 years old, you should still be covered by the original warranty.

However, you need to make sure the seller's solicitor provides you with the warranty certificate and policy documents. Without these, you won't be able to make claims even though the warranty technically still exists.

Any alterations or improvements the previous owner made to the property won't be covered by the warranty. Only the original builder's work is protected, so extensions, loft conversions, or major renovations are your responsibility.