What is and isn’t covered by new build insurance?

Though most architects, construction workers, and professionals involved in a building project will take pride in giving their best, there is always the possibility that mistakes could be made.

Whether accidental or deliberate, failure to comply with safety regulations or perform the tasks they are liable for to the appropriate standard can lead to structural defects developing, which can pose a serious danger to occupants and be costly to rectify later.

That’s why new build insurance is necessary to provide financial protection against latent defects caused by professional negligence – providing a type of cover for newly constructed or converted homes.

If you are selling or buying a new home, you will either need to set up such a policy yourself or ensure the owner can transfer one to you for lasting peace of mind.

Of course, when relying on this type of building warranty, you should be aware of what is and isn’t covered – so here is a quick guide to how it works.

What does new build insurance include?

The purpose of this insurance policy is to provide financial cover in the event of structural defects developing that would require significant repairs or replacement works to correct.

A structural defect is a fault caused by issues such as poor workmanship in design or construction or the use of inferior materials. For example, poorly laid foundations or miscalculated load-bearing walls could eventually lead to a building collapsing.

Such a construction defect would not meet the minimum specifications mandated by law and stipulated in the works contract and the insurance terms, so the owner of the building would be able to make a claim for the costs of addressing the defect.

Some policies may also cover the buyer against the builder or developer becoming insolvent before the property is finished, protecting those who purchase off-plan properties.

What is excluded from new build insurance?

As with all insurance policies, new build cover will list some exclusions that the policyholder cannot claim for – such as weather damage or general wear and tear.

Typical exclusions involve any problems that the buyer was aware of before purchasing the home – especially if the issue resulted in a price reduction or some other compensation – and any damage from causes unrelated to the builder or developer’s work.

For example, if the owner failed to maintain the building properly and this led to the development of damp or water damage, this would not be covered under the warranty conditions.

It’s also important to note that any further construction or renovation work carried out after the original completion is likely to invalidate the current policy – which will need to be updated or replaced to cover the latest changes to the property.

Need a new build insurance quote?

Different providers will offer different conditions, so it’s essential to check the small print before setting up a policy to make sure that it covers everything you need it to.

If you’re looking for new build insurance that can be personalised to the requirements of your project, our ABC+ Warranty could be just what you need. We offer a range of insurance types for various kinds of properties and building projects, at all stages of development.

To discuss your insurance requirements and request a tailored quick quote, fill out the form or get in touch with our team on 0161 928 8804. You can also email info@architectscertificate.co.uk and we will get back to you with more information soon.