New Build Home Insurance

You don't have to travel far in the UK these days to see new homes under construction. As a nation, we need fresh housing stock to accommodate the growing population and the increasing number of people who live alone.

The idea of moving into a brand new house appeals to buyers who like gleaming fixtures and fittings and the smell of fresh paint. It can also be satisfying to put your stamp on a property and help shape its character. But there are a number of issues and potential problems associated with new build houses, so it's essential to find out about new build home insurance.

Get a new home insurance quote now

The role of the NHBC

Problems can arise with a new build property even before it is completed. For example, what happens to your deposit if you have bought the house “off plan” or during construction and the building firm goes out of business before the work is finished?

The National House Building Council (NHBC) can help. Most building firms belong to the NHBC, which means they can issue a 10-year warranty called 'Buildmark' on the houses they construct. Buildmark is like an insurance policy, and it protects you in the following ways:

• Pre-completion insolvency cover gives you protection if your builder goes bust after you have exchanged contracts but before completion.
• Cover for the first two years after completion means your builder is responsible for putting right certain damage and defects during the early years.
• Buildmark also covers any damage caused by a defect in specified areas of the home such as damage to floors, staircases, roofs, drains, windows and doors, during years three to ten of ownership. If you move within this period, you can transfer the warranty to the new owner.

If you are buying a property that is under construction or is newly completed you should quiz the builder about its membership of the NHBC and request confirmation that a warranty is in place. The cost will be included in the price you pay for the house.

The NHBC's Buildmark warranty is important, but it doesn't meet all your insurance needs, so you need to think about a separate new home insurance policy.

The NHBC warranty only provides cover for a builder's failure to meet certain standards through negligence. It does not insure your home against natural perils, such as fire, flood or storm - common risks that can affect a house of any age. And it's always a good idea to take out insurance against subsidence.

Buying insurance for your new home

Whenever you buy insurance, you should shop around for the best value deal. You can use the MoneySupermarket comparison tool to compare home insurance for new properties from a wide range of companies.

Our calculators will enable you to work out how much cover you need and choose the policy features that best suit your property and budget.

You will need a policy for the building and the permanent fixtures and fittings, and separate contents insurance for your belongings. It is essential that you choose the right amount of cover - enough to pay for the house to be completely rebuilt if it is destroyed and enough to replace all your belongings if they are destroyed, damaged or stolen.

Your builder or the insurance company will help you determine the rebuild cost, which may be different from the market value.

The best way to reach a value for your contents is to go through each room and make a list of your possessions and how much they would cost to replace. You might be surprised at the size of the total!

Common problems with new build homes

It is only when moving into a new home that you will start to notice the 'snags', minor problems that remain after the property has been signed off.

This can include faulty plumbing, paint splashes, poor electrics chipped tiles etc.

For the first two years, any problems will be the responsibility of the builder to put right as stated under the Buildmark warranty.

Also as your house 'settles' and gravity takes its effect, double check the brickwork and plaster for any crack that may appear over time.

Saving money on new home insurance

If you want cheap insurance for your new build home there are several steps you can take to get a lower quote:

• Nip potential structural problems in the bud by maintaining the property in a good state of repair
• Always lock doors and windows when you are out and at night when you are asleep
• Make sure any locks are approved by the insurance company
• Don't leave keys (including car keys) in view near an open window or door - thieves are known to “fish” for keys through letterboxes
• Don't leave expensive items such as laptops, mobile phones and other devices in open view
• Fit an approved burglar alarm
• Fit an approved fire alarm
• Try to stay claim-free for consecutive years to build up a no claims bonus
• Choose a higher excess (the amount you pay towards any claim) than that imposed by the policy. But don't choose a higher excess than you can afford!