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

Last updated: 2026-10-03

Quick answer

A new-build warranty covers how the home was built, not where it was built. Under NHBC's Buildmark, for example, the builder must put right defects that breach NHBC requirements in the first two years; then an eight-year insurance period covers damage caused by defects in specified parts of the home, such as foundations not built to NHBC requirements. It excludes damage from fire, smoke and severe weather, theft, accidental damage and wear and tear. Flood exposure, ground conditions and what is planned nearby are location questions — screen them before you reserve.

Dimension	Pre-offer property report	New-build warranty (e.g. NHBC Buildmark)	Snagging survey
Question it answers	Is this location exposed to flood, ground or mining risk?	Who pays if the home was built defectively?	What is unfinished or defective right now?
When	Before you reserve	From completion, for ten years	Around handover
Build defects	Not covered	Builder liable in years 1–2; insurance for damage from defects in specified parts in years 3–10	Finds them so the builder can fix them
Flood	Yes — official flood mapping for the address	Severe weather damage excluded	Not covered
Ground and mining	Yes — area screening from national datasets	Damage from defective foundations; not a ground investigation	Not covered
Contaminated land	Environmental and regulated-site registers nearby	Cover to improve contaminated land where a statutory notice has been, or could be, issued	Not covered
What is planned nearby	Major infrastructure projects; Complete adds planning designations	Not covered	Not covered
Cost to you	£9.99 Lite / £24.99 Complete	Arranged by the builder	See our snagging survey guide

Our verdict

The warranty is valuable and you should understand exactly what yours covers. But it answers one question — what happens if the home was built badly — and buyers routinely treat it as an answer to questions it was never designed for. Screen the location before you reserve, snag the home at handover, and keep the warranty for what it does well.

Check the plot before you pay a reservation fee

£9.99 Lite screens flood, ground stability, radon, coal mining and nearby major projects. Emailed within 24 hours, usually faster.

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£24.99 one-off · no subscription · Human-checked and emailed to you. See a sample report · Review report options and coverage

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 — together with 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.

Buying new? Screen the location

From £9.99, one-off. £24.99 Complete adds planning designations and the area picture.

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£24.99 one-off · no subscription · Human-checked and emailed to you. See a sample report · Review report options and coverage

Frequently asked questions

NHBC's Buildmark has two stages. For the first two years the builder is liable to put right defects that breach NHBC requirements, with NHBC guaranteeing the builder's obligations. For the following eight years an insurance period covers the cost of repairing damage caused by defects in specified parts of the home — NHBC's example is damage caused by foundations not built to its requirements — plus reasonable costs for alternative accommodation and storing possessions.

Do not rely on it. NHBC lists damage caused by fire, smoke or severe weather among the things Buildmark does not cover; that is the job of buildings insurance. A warranty also cannot tell you whether the plot sits in a flood zone — check the official flood mapping for the address before you reserve.

NHBC lists 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. Other providers word their policies differently, so read the one that comes with your home.

They do different jobs. A snagging survey finds unfinished or defective work around handover, so you can report it to the builder in the period when the builder must fix it. The warranty is what responds if something goes wrong later. A good snagging list is what makes the first two years of the warranty useful.

Yes, for the location rather than the build. A new estate can sit beside a river, on made ground or in a former coalfield, and a warranty is not designed to tell you any of that. A pre-offer report screens flood risk, ground stability, radon, coal mining and nearby environmental registers and major projects before you pay a reservation fee.

The builder, in writing. Under Buildmark the builder is liable to put right reported defects that breach NHBC requirements during the first two years, and NHBC guarantees those obligations. Keep a dated record of what you reported and when.

Sources

Buildmark cover — NHBC