What an NHBC warranty and other new build warranties cover

What a new build warranty is

A new build warranty (also called a structural warranty or new home warranty) is an insurance policy that protects you against certain defects in how your home was built. The builder registers the home with a warranty provider, pays for the policy and passes it to you at completion. The New Homes Quality Board's buyer guide says the policy usually lasts 10 years in total. It is separate from your buildings and contents insurance, which you still need.

There are several warranty providers in the UK. Their policies share a common shape but differ in detail, so your own policy booklet and certificate are what count. This guide uses the published cover of three providers, NHBC, LABC Warranty and Premier Guarantee, to show how it typically works.

Why it matters for your mortgage

Mortgage lenders generally want a new build to have an acceptable warranty before they lend. UK Finance's October 2025 guidance for warranty providers sets out what lenders typically expect:

• at least 10 years of cover
• in the first 24 months, cover for failures to meet building regulations and published technical standards, including if the builder becomes insolvent
• from month 25 to month 120, cover for weather tightness, structural integrity and newly laid underground drainage within the plot
• cover that passes automatically to later owners and to the lender

There is no single approved list: each lender decides which warranties it accepts. Your conveyancer and lender will check the warranty before you exchange. The new build mortgages guide has more on lending.

The stages of cover

The two-year builder period goes by different names: the builder warranty period, the defects insurance period or the defects liability period.

Before completion: deposit and insolvency cover

If you exchange on a home that is not finished, you have usually paid a deposit of 5% to 10% of the price, and the builder could in rare cases go out of business before completion.

NHBC's Buildmark policy covers builder insolvency after exchange and before completion. NHBC says it may either repay the deposit you lost, up to the financial limit in your policy, or pay the reasonable extra cost of getting the home finished. You must have had good reason to believe the builder could meet its obligations when you signed, and you must have intended to complete and live in or let the home, not buy as a short-term investment.

LABC Warranty and Premier Guarantee both describe deposit protection as optional, so it may not be included in every policy. Check the warranty summary in your reservation pack, and ask your conveyancer how your deposit is protected. Builders registered with the New Homes Quality Code must have arrangements to protect deposits, such as insurance through the warranty or a separate client account. The reservation to completion guide covers this.

Years 1 and 2: the builder's period

For the first two years after the policy starts, your builder is responsible for putting right defects that break the warranty provider's technical standards. This is when most snags and early defects show up, so it is the most important period to act.

What to do

1. Report problems to the builder, not the warranty provider, as soon as you find them. Use its after-sales service and put it in writing.
2. Keep a record of what you reported, to whom and when, with photos.
3. Give the builder reasonable time and access to do the work.
4. Make a formal complaint if the builder does not fix it or disagrees. Builders registered with the New Homes Quality Board must send a complaint assessment and response letter within 30 days, which may set out further steps and when you will hear next.

If the builder will not fix it

The warranty provider backs the builder's obligations during this period. NHBC says it guarantees the builder's obligations under the builder warranty, and offers a resolution service if you are unhappy with the builder's final decision or it does not respond within 30 days of a formal complaint. To use it, you must have told the builder about the problems within the two-year period, given it reasonable time and access, and been through its complaints process. LABC Warranty and Premier Guarantee say that if the builder will not resolve a defect, you should contact them during this period, and they list a £100 excess.

You may also be able to complain under your builder's consumer code. The guide to your protections explains the New Homes Ombudsman Service and the Consumer Code for Home Builders.

Snags and defects

The New Homes Quality Code describes a snag as a minor imperfection, such as something damaged, broken, badly fitted or unfinished. A defect is incomplete or faulty work that does not meet the standard set by the contract, the warranty provider or the manufacturer. Both should be reported in the first two years. The snagging guide has a room-by-room checklist.

Mechanical and electrical cover

Some policies add cover for hidden faults in fixed equipment that was new when the home was built. LABC Warranty and Premier Guarantee describe this cover as running for years 1 to 5, covering items such as heating systems and boilers, ventilation, lifts, lighting and electrical systems, security systems, pumps and water heating. It does not cover freestanding appliances such as fridges and washing machines, or software. They list a £500 excess, and your certificate shows whether you have this cover.

Years 3 to 10: structural cover

From year 3, the builder is no longer responsible under the warranty, and you claim from the warranty provider directly. The cover is narrower: it is for damage caused by defects in the main structure and outer shell, not for everything that might go wrong.

LABC Warranty and Premier Guarantee list these parts as covered in their structural insurance period:

• foundations
• load-bearing walls, floors, ceilings, staircases and roofs
• internal partition walls
• chimneys and flues
• roof coverings
• external finishes such as render
• floor decking and screeds
• wet-applied plaster
• the double or triple-glazed glass in external windows and doors

They list a minimum excess of £1,000 for this period. NHBC says its cover in years 3 to 10 is for damage caused by defects in specific parts of the home above a minimum claim value, and it also covers alternative accommodation if you need to move out while covered work is done, and the cost of dealing with contaminated land. Its policy booklet lists the parts and the limits.

All three cover contaminated land: if you receive a statutory notice about contamination that existed before completion, the policy pays reasonable costs of dealing with it.

What warranties do not cover

LABC Warranty and Premier Guarantee list these exclusions from structural cover. Other policies have similar lists, so read yours.

• general wear and tear
• cosmetic or non-structural problems
• damage caused by a lack of maintenance
• weather or natural disaster damage (your buildings insurance is the place for this)
• appliances, fixtures and fittings
• alterations or extensions made after completion
• items you install yourself
• snagging

Warranties also have financial limits and an excess or minimum claim value, set out in your policy. Keeping your home maintained matters: the New Homes Quality Code requires builders to give you guidance on what normal maintenance is your responsibility.

How to make a claim

1. Find your policy documents. Your conveyancer should have given you the certificate and booklet at completion. Warranty providers let you download or request them if you cannot find them.
2. Check your dates. Check the start date on your certificate: NHBC says its builder warranty period is usually two years from that date.
3. Check the right route. In years 1 and 2, go to the builder first. From year 3, claim from the warranty provider.
4. Gather evidence: photos, dates, any reports from surveyors, and your correspondence with the builder.
5. Submit the claim online or by phone, using the claims details in your policy.
6. Expect an inspection. The provider will usually inspect to decide whether the problem is covered.

Warranty policies are insurance. UK Finance's guidance says lenders expect the named insurers to be authorised by the Financial Conduct Authority and members of the Financial Ombudsman Service. If you are unhappy with how a claim is handled, complain to the warranty provider first, and ask it how to take the complaint further.

Your other legal rights

A warranty sits on top of your legal rights, it does not replace them. Under the Defective Premises Act 1972, people who build homes owe a duty to build them in a workmanlike or professional way, with proper materials, so they are fit to live in. The Building Safety Act 2022 extended the time limit for these claims to 15 years for claims arising from 28 June 2022, and 30 years for earlier ones. These are legal claims, so get independent legal advice before relying on them.

Warranty checklist

• Before you reserve: ask which warranty provider covers the home. Builders on the New Homes Quality Code must tell you, and your reservation agreement must include the provider's contact details and a summary of cover.
• Before you exchange: ask your conveyancer to confirm the warranty, whether it includes deposit protection, and that your lender accepts it.
• At completion: get the cover note or certificate and policy booklet, with any exclusions, limits and excesses.
• In the first two years: report snags and defects to the builder in writing, and keep records.
• Before the two years end: do a full check of the home and report anything outstanding.
• When you sell: the remaining cover passes to the buyer, so keep the documents to hand over.

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