The age of the property
Older materials are often more expensive
A new-build home is usually defined as a property that has been built in the last two years which has never been owned or lived in, though the exact definition can differ between lenders.
New builds are put into a special category for insurance purposes because there are certain ways they can go wrong – usually construction defects, or features and fittings that don’t work properly. Many of these should be protected by the 10-year warranty which comes with most new-build properties – but that warranty doesn’t cover every eventuality.
If you buy a new build, your mortgage lender will almost certainly require you to get a buildings insurance policy to protect the property for damage that’s outside your control, including fire, flooding and storms.
UPDATED MAY 2022
Most new properties in the UK are constructed by companies registered with the National House-Building Council (NHBC), and they come with a certificate that acts as a 10-year warranty protecting you from certain common problems.
The NHBC Buildmark certificate currently protects around 80% of newly built or converted homes in the UK – or 1.5 million or so properties in total.
The NHBC certificate lasts for 10 years, and works like this:
Older materials are often more expensive
We need to know what the roof, walls and frame are made of
Local crime statistics often have an effect on your premiums
A higher subsidence risk means more chance of serious damage
If the property is near a river there is a higher flood risk
These indicate a larger building and higher costs
Listed buildings are especially expensive to insure
How much does new-build insurance cost?
The cost of your annual home insurance depends on plenty of factors – including size, location and construction type.
Search for buildings insurance with MoneySuperMarket
It's cheaper to pay for your buildings
insurance annually, rather than
monthly, as you won’t pay interest
A history of not claiming on your
buildings insurance is usually rewarded
with a discount on your premiums
"New-build homes don’t often have issues, and those that do tend to be covered by the NHBC certificate. You will still need a home insurance policy when you get your mortgage, however, as the certificate doesn’t cover you for damage that’s not been caused by the builders."
- Michelle Jones, Home Insurance Lead
Yes, you do. Even though new-build homes usually come with a warranty that protects you from errors in the construction process, the warranty doesn’t cover you for everything that can go wrong with a new home. What’s more, your mortgage lender will almost certainly require you to take out buildings insurance before they lend you the money.
The cost of your home insurance depends on many factors, including where you live and what the house is built out of, but because newer homes tend to be better constructed and made out of readily available materials, it usually costs less on average to insure them.
New-build homes come with many advantages – they have modern designs which aim to be future proof, they’ve yet to suffer wear and tear, and there are certain government schemes available which can often make them cheaper to buy.
The NHBC is an independent body which helps provide warranties and certification for new homes. It also supplies inspectors for building regulations.
It is a non-profit distributing company, which means it is bound to put all its profits back into running its services. NHBC is authorised and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
Most newly built properties come with a certificate, either from NHBC or one of the two other bodies which provide similar warranties. Without a warranty, you’re not protected if there are flaws in the construction of your home.
If your new-build property doesn’t have a buildmark certificate it makes it even more important to take out a home insurance policy that covers your building and contents.
You should also ask the builder why they aren’t part of the scheme if possible before you buy the home. It may be because they’re a small business and they can’t afford to pay the fees involved, but you should ideally aim to find a property with a certificate.
If you’re purchasing a property that’s been newly converted you may be eligible for a Buildmark certificate, however it may come with certain exclusions – you should become familiar with any policy documents and certificates so you know exactly how the cover applies.
In the first two years, Buildmark covers you for physical damage that occurs to your home as a result of builders’ errors, the removal of contaminated land, and any costs you might incur for staying in alternate accommodation and storing your possessions while corrective works take place.
In years three to 10, Buildmark should protect your home from damage that results from the property not being built to NHBC requirements.
A helping hand to find the right home insurance deal for your needs
Here’s what contents insurance covers and how you can get it for less
Protect your home and make sure you’re getting the best price
How to protect your belongings when you live in rented accommodation
Get affordable cover for your home-from-home
Protect your valuable gadgets with this specialist cover
Find out how to make a claim on your home insurance
Our guide to insuring an unoccupied property
Protect your household appliances for longer with an extended warranty
Get specialist cover if your home is in a flood-risk area
How to spot subsidence in your home and protect against it
Will your property be empty in the short term? Here’s how to protect it
Protect yourself against life’s little mishaps around the home
Get specialist cover and peace of mind for your most prized possessions
Protect all your valuables in your student house, flat or halls
Limited-time home insurance cover for your property and possessions
Get specialist cover if your home is a listed building
Specialist home insurance cover for your new build home
Tips to make your garden more secure
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
So how do we make our money? In a nutshell, when you use us to buy something, we get a reward from the company you’re buying from.
You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
We aim to show you home insurance quotes from as many insurance companies as possible, so that you can find the right policy for you.
Unfortunately, we can’t promise to show quotes from every insurance provider, because not all companies want to be included on comparison websites.
We won’t offer you advice or make a recommendation, but we will provide you with all the information you need to help you decide which is the right policy for you.
You can find out more about how we work here.