New build home insurance

Cover your new build property with everything your warranty won’t protect.

With their glossy new kitchens and high-spec designs, it’s easy to see why new build homes are popular. But snags can cause problems when you least expect, so could new build home insurance give you extra peace of mind?

What is new build insurance?

New build insurance is a policy which will protect you financially if your new build property requires costly repairs or is damaged by events like fires, floods and subsidence.

A ‘new build’ is a home that has been built in the last two years and hasn’t been occupied by another person.

What isn’t covered by new build insurance?

Even if you have new build house insurance in place, you won’t be covered in certain situations, such as:

• Damage caused by wear and tear.
• Theft following negligence, such as leaving a window or door open.
• Deliberate damage caused by you or anyone else.
• Construction defects, including poor or faulty work carried out within the home.

Do I need home insurance for a new build?

Unlike car insurance, home insurance is not a legal requirement in the UK, but it’s still sensible to get new build insurance before completion to protect yourself in the future. And in fact, some lenders may insist upon it.

If you’re planning to buy a new build home, it may come with a ten-year warranty and a Buildmark certificate from the National House-Building Council (NHBC), which covers any issues and damage caused by the builders. However, if you experience unexpected structural issues, you would need to prove the builder was at fault in order to make a successful claim.

Having a new build insurance policy could cover you for any problems that arise following events like storms, fires and floods.

Is home insurance cheaper on new builds?

While nothing is guaranteed, you might find that your home insurance for a new build is less expensive than for a period property. That’s because newer properties have modern electrical wiring and plumbing systems, which means that on average, a claim is less likely compared to an older property. Additionally, many new builds have cutting edge security which reduces the likelihood of a break-in.

Advantages and disadvantages of buying a new build

We all have different tastes when it comes to homes, whether we like traditional Victorian semis, mid-century townhouses or sky-high apartments. So if you’re thinking of buying a new build property, what are the advantages and disadvantages to consider?

Benefits of a new build

• Low maintenance – If a new build property has been built to a high standard, you shouldn’t have to fork out on renovations, repairs and maintenance in the near future.
• Cheaper bills – Modern homes are usually more energy-efficient compared with older properties, so you can expect to pay less in energy bills.
• Smart features – Newer properties are often equipped with modern thermostats, lighting and heating systems that can improve your everyday living experience.
• No chain – You can avoid the potential property chain problems, such as a seller pulling out or being gazumped. This can make the move quicker and less stressful.

Drawbacks of a new build

• Premium prices – A new build won’t be ‘new’ forever, so being the first homeowner to set foot in a property comes at a cost, especially when developers are looking to make a return on their investment.
• Extra charges – Compared with a traditional freehold house, buying a new build property often means becoming a leaseholder, meaning you’ll be liable for any major works, as well as additional fees for things like landscaping, parking and service charges.
• Less character? – Beauty is in the eye of the beholder, but it’s fair to say that many people prefer the look and feel of charming older buildings compared to new builds.
• Navigation – When buying a new build, the entire area is likely to be a new development, which means your new postcode may not appear in some insurers’ database yet. This can make a range of things difficult, including getting insurance as the area is not recognised. Insurer’s may have to record your address manually and go by the highest risk factors, to ensure you are covered in all events.