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.