New-build warranty vs a property report: what each covers

How a new-build warranty works

New homes are commonly sold with a ten-year warranty and insurance policy registered by the builder. NHBC's Buildmark is a widely used example. For the first two years there is “a two year builder warranty period, during which the builder is liable to put right defects which are reported to them,” with NHBC guaranteeing the builder's obligations. For the next eight years an insurance period covers “the cost of repairing damage to your home caused by defects in specific parts of your home described within the policy.” NHBC's example is damage caused by foundations not built to NHBC requirements. It also covers reasonable costs for removing and storing your possessions and alternative accommodation.

Buildmark also includes “cover to improve the condition of contaminated land in the event a statutory notice has been, or could be, issued.” That is a meaningful protection, and it is triggered by a regulator acting, not by the policy telling you what is in the ground.

What it excludes

NHBC lists what Buildmark does not cover: gradual deterioration, wear and tear, neglect and failure to maintain; damage caused by fire, smoke or severe weather; theft or accidental damage; and items covered by other warranties or insurance. In other words, the things a buildings insurance policy is for. Other warranty providers word their policies differently, so read the document for your home rather than assuming it matches anyone else's.

The location questions a warranty cannot answer

A warranty is about workmanship and materials. It does not assess the plot. New estates are built where land is available, and that can mean beside rivers, on former industrial land or in former coalfields. The home can be built perfectly and still sit in a flood zone or on ground that moves. Those are questions to answer before you pay a reservation fee, because once you have exchanged on an off-plan home your room to walk away narrows quickly.

A pre-offer property report screens the address for flood risk and flood history from the official national maps, ground stability and subsidence, radon and coal mining, environmental and regulated-site registers nearby and major infrastructure projects. £24.99 Complete adds planning designations and the wider area picture. On a plot that does not have a full postal address yet, ask the developer for the plot's postcode or check the nearest completed homes on the same estate.

Snagging fills the gap at handover

Between the location and the warranty sits the build itself on the day you move in. A snagging survey lists unfinished and defective work so you can report it to the builder while the builder is responsible for putting it right. It is the practical way to make the first two years of a warranty work for you. Our snagging survey guide covers costs and timing.