Homeowner warranty insurance is designed to cover any structural issues in the construction of a new building. With it, you can enjoy peace of mind, knowing that you will not need to pay for any repairs needed on the new building.
What is Homeowners Warranty Insurance?
Homeowners can either construct their buildings or purchase ready-built properties. And while it is exciting owning a new home, you will need the assurance that you will be covered financially if there are any structural or design issues. This is where homeowner warranty insurance comes in.
This warranty is meant to cover new buildings or those that were constructed within the last two years. While new buildings typically have fewer problems compared to older ones, it is still important to obtain this warranty as small issues can end up being costly to fix.
Homeowners warranty insurance generally covers you for any defects that result from the design or workmanship.
How Long Do New Build Warranties Last?
New build warranties usually last for ten years, and this period starts from the date on the completion certificate. These ten years include the initial two years that are covered by defects insurance. Issues with fixtures and fittings will only be covered in those first two years.
For the remaining eight years, the new build warranty will cover any structural issues in the property. It is worth noting that most defects in the construction will be apparent within the first two years of completing the project.
Most reputable builders are keen to put right any issues that are evident within this period, as part of providing a good service.
What Does Homeowner Warranty Insurance Cover?
As noted earlier, homeowner warranty insurance will cover different aspects depending on the period after the construction of the house. The first two years are considered the defects insurance period, where the builder will be required to fix any faults in the property. For example, if the pipes aren’t working well, the builder will have to come in and correct the issue.
The next eight years are the structural insurance period, where the warranty provider will have to fix structural issues in the property. For example, they will have to fix any issues with the roof, ceiling, and foundation of the house.
In this eight-year period, smaller non-structural defects will no longer be covered by the builder. Therefore, you will have to fix any issues with the fixtures or pipes for your own account.
It is important to note that different warranty providers have different policies, so you need to go through their terms before you enlist the service. In many cases, the providers of the warranty will not cover certain issues that result from the failure of the builder to comply with the warranty provider’s standards.
You also need to ensure that you go through the fine print of the homeowner warranty insurance, as some may have unreasonable terms. These terms are usually meant to limit the number of items that can be covered under the warranty.
Another thing you should check is the rating of the warranty provider. It is always important to work with A-rated insurers as these are extremely unlikely to go into liquidation. Unrated insurers carry more the risk of going under and, if this happens, you will end up without valid homeowner warranty insurance, leaving you in breach of the terms of your mortgage provider and impacting you financially.
What Doesn’t Homeowner Warranty Insurance Cover?
First, it is important to remember that a homeowners warranty is different from regular home insurance. That means it does not cover the fixtures, fittings, and contents of the home.
Homeowner warranty insurance also doesn’t cover the natural wear and tear of the property. You will also not get coverage if your home gets damaged as a result of poor maintenance. Ideally, you should consult your builder to determine how you can best care for the property. Here are a few tips you should follow to properly maintain your property:
- Clear any moss growth sustained over winter
- Regularly inspect the exterior paintwork and patch up any flaking sections
- Check your walls for any signs of dampness
- Sweep the chimney regularly
- Clear any leaves and debris on the external walls of the house as they can collect moisture
You should also note that dampness and condensation may not be covered. They will only be included if they resulted from the builder’s failure to keep to proper standards. Usually, the warranty provider will indicate the cases where dampness and condensations will qualify for the warranty coverage.
Damage that is caused by weather conditions will also be excluded from the homeowner warranty insurance.
In addition, the warranty provider will not be liable for any work you do on the home yourself. For example, conservatories and loft conversions will not be included.
What Happens to Homeowner Warranty Insurance When You Move?
If you sell your home, the homeowner warranty insurance will automatically transfer to the buyer. The warranty will still be valid for the same ten years, starting from the date indicated on the certificate of completion.
Homeowner warranty insurance is essential for all new buildings in the United Kingdom. This type of warranty is usually valid for a period of 10 years, although some providers may offer coverage for up to 12 years.
In the first two years, any major issues in the building will be rectified by the builder. However, for the rest of the warranty period, the warranty will only cover major structural defects in the house. These include issues with the foundation and roofing.
When choosing a provider of homeowner warranty insurance, always ensure that they are A-rated.
Why Choose Buildsafe?
Our experts have over 40 years’ of experience in the property sector so you can be assured that we will handle your project with the expertise and care that has been successfully developed over this time.
We take away that pain by managing the process for you and ensuring you receive the best price and the most appropriate cover to meet your requirements whilst having an easy to reach team of experts on hand at all times. Do not hesitate to get in contact with us.