A shiny new build home, fresh paint, and that just built smell…what could go wrong. Hopefully nothing! But just in case, sorting out new build home insurance is a must. Here’s everything you need to know about home insurance for new builds.
New build warranty vs new build home insurance
The majority of new build homes come with an NHBC warranty or insurance policy. The NHBC is the UK’s leading organisation for setting building standards and providing warranties for new homes.
The warranty on new builds lasts 10 years and ensures that homes built by the NHBC developers meet certain quality standards. For the first two years, your builder is responsible for fixing any issues by poor workmanship or failure to meet NHBC standards.
But what if a burst pipe floods your brand new kitchen, you fall victim to a burglary, or there is a fire or flood due to bad weather? The NHBC warranty doesn’t cover for any of these things.
That’s where new build insurance comes in, covering you for unexpected happenings that warranties don’t.
What insurance do I need for a new build?
When buying new build home insurance, the key insurance policies to consider are both buildings insurance and contents insurance. Buildings insurance covers the structure of your home, as well as any permanent fixtures and fittings. This means that any fitted rooms are covered, like your shiny new kitchen and bathroom. Buildings insurance also covers you for any damage from storms, floods, and fires.
As well as buildings insurance, you’ll also want to consider contents insurance. Contents insurance protects all of the valuables and household goods within your new build, just in case they are damaged, destroyed or stolen.
Rather than buying buildings and contents insurance separately, it’s highly recommended opting for a combined policy for new build insurance. This is where the two are merged. Not only is a combined policy more effective, but it also ensures there are no gaps in your cover, you’ll pay less excess, and it simplifies the claims process should you ever need to make one.
When to arrange new build home insurance
If you’re buying with a mortgage, the lender will require you to have new build insurance from the moment contracts are exchanged. This is because you will become financially responsible for the property at this stage, even if you aren’t moved in yet.
However, with a new build property it may be the case that buildings insurance isn’t required until the day of completion. Always ensure you check your specific requirements with your solicitor.
If you’re buying outright, it’s still the best decision to arrange new build home insurance before completion to make sure there are no gaps in cover. If there is a delay before you move in and the property is left unoccupied, you may consider unoccupied property insurance to protect your new build against risks such as theft, or damage to the property whilst it is empty.
Another thing to consider is the variation of house insurance costs by postcodes. New build insurance premiums can vary depending on location, so it’s best to compare quotes as early as possible so you can find the right level of cover at the best prices, giving you one less thing to worry about when moving into your new build home.
Additional new build insurance policies to consider
Alongside buildings and contents insurance, there are also additional cover levels you can add to your new build insurance policy. This includes:
- Home emergency cover: Provides 24/7 assistance for sudden issues like boiler breakdowns or electrical failures.
- Accidental damage cover: Protects against mishaps such as spilling red wine on the brand new carpet, or drilling into a hidden pipe.
- Legal expense: Covers legal costs if you face disputes such as faulty workmanship claims and problems with neighbours.
- Personal possessions cover: Protects valuables such as laptops, phones, and jewellery when taken outside of the house, extending contents insurance beyond the home.
How to find the best home insurance for new builds
Finding the right home insurance for new builds means looking beyond the price. Start by checking that the policy covers both buildings and contents insurance, as well as any extras you may need such as accidental damage or personal possessions cover.
Since house insurance costs and cover levels can vary, it’s always worth comparing quotes and getting advice when you need it. Also make sure to review what’s included in your new build warranty, so that you’re not paying for unnecessary premiums for your new build insurance. Finally, check the policy carefully to ensure it covers everything that you need.
The NHBC warranty doesn’t replace insurance
Remember, the NHBC warranty only protects your against repairs that need to be made due to poor workmanship. If anything goes wrong, you need home insurance in place. As a condition of any new mortgage, your lender will insist that buildings insurance is in place and maintained for the term of your mortgage agreement.
How Nest GI can help
Wondering where you can find new build home insurance? You’re in the right place! At Nest GI we have a range of different insurance policies, and are dedicated to helping our customers find a policy that fits their needs, taking away the hassle of navigating it all on their own.
Whether you need a combined policy or extra insurance protection, we’re here to help. With our panel of over 90 trusted insurers, we’ll find you the right new build home insurance. If you want to find out more about home insurance for new builds, get in touch with us today.
