New Build Home Insurance

New builds usually come with a manufacturer’s warranty that tends to last 10 years. Whilst a manufacturer’s warranty offers you some form of protection by covering issues that relate to the building work carried out by the developer, home insurance policies offer a much more substantial level of cover.

Home insurance covers the physical structure of your home and the contents of your home against damage caused by floods, fire, subsidence or storms. Manufacturer’s warranties will only cover issues that arise as a direct result of the developer’s handiwork.

Do I need new build home insurance?

If you’ve bought a new build home, your mortgage provider will most likely insist that you have taken out new build insurance before completion. At the very least, your new build home insurance policy must cover the physical structure of your home for the full term of your mortgage agreement. If you want further protection, you can choose to take out contents insurance too, which protects your personal possessions from loss, theft or damage.

What does new build insurance cover?

There are two different types of home insurance you can get:

New build buildings insurance covers the physical structure of your home and any permanent fixtures, such as fitted kitchens and bathroom suites. You’re insured for the cost of rebuilding your home.
New build contents insurance covers the cost of repairing or replacing your personal possessions if they’re stolen, lost, damaged or destroyed. Contents are considered to be items that you take with you if you move home, such as TVs, furniture and clothing.

If you want the best level of protection, you should take out joint buildings and contents insurance.

What is a new build warranty?

The majority of new builds in the UK come with a guarantee from the building company and a warranty from a specialist provider. The most common warranty that currently protects around 80% of newly built or converted homes in the UK is the Buildmark certificate, which is provided by the National House Building Council (NHBC).

The NHBC Buildmark certificate lasts for 10 years. If your home needs repairing within the first two years, the company that built your property will be responsible for fixing the issues. For the remaining eight years, the Buildmark certificate works the same as an insurance policy and covers you for physical damage resulting from work carried out by the builders. You’ll also be covered if your builder goes bankrupt before your home is finished, up to either 10% of the purchase price of £100,000, whichever is greater.

It’s important to note that this warranty only covers you for damage caused by the builders, it doesn’t cover damage from natural disasters, such as floods, subsidence or fire. New build house insurance will protect your home against these things, so you should consider taking out a policy even if your home is protected by the NHBC Buildmark certificate.

How much is new build home insurance?

This will depend on a variety of factors including the size of your house, how much it will cost to rebuild and how secure your locks are. New build homes can sometimes be cheaper to insure because they are built with new technology, making them more affordable to run and they’re normally fitted with more secure doors, windows and locks, making them less likely to be broken into.

You should compare home insurance quotes to see which provider offers the best level of cover for your needs. Whilst it’s important to consider the cost of the policy, you should put more focus on what the product offers. You need to ensure that the buildings’ and contents’ cover limits are high enough to cover the cost of rebuilding your home and replacing your personal possessions.

Take a look at our home insurance comparison table to get an overview of which provider is offering the best policy on the market based on product quality and customer service. We encourage you to read reviews so that you can get an idea of how providers treat their existing customers and handle claims. You want to ensure you’re in the best hands possible if you ever need to make a claim.

Frequently asked questions

Is new build insurance a legal requirement?

New build home insurance isn’t a legal requirement but some mortgage providers will insist that you have buildings insurance before they lend you the money, in which case, it is essential that you have a policy.

Do I need home insurance if I’m renting a new build?

Your landlord is normally responsible for insuring the building, so it’s likely that you won’t need buildings insurance. However, you should consider taking out a contents insurance policy to cover your personal belongings in case they get stolen or damaged. Check your tenancy agreement so you know whether your landlord has necessary insurance or not.

Are new homes cheaper to insure?

New homes tend to be made of better constructed materials, come with the latest technology and have more secure fittings, so this can make them slightly cheaper to insure.