With the ongoing demand for houses, new-build projects are increasingly common – from property developers planning whole estates, to individuals choosing to build a home rather than buy one.
When you plan a new project insurance, you can look forward to a property built to modern standards, in a location that suits you, and often to your own design. And for these reasons, it’s vital you have the right cover.
We understand both the financial and personal investment that goes into a new-build project, so our policy keeps you covered from risks such as flood, fire, or theft of materials. Unlike new-build home insurance – which covers you once you’re living in the home and the works are signed off – our insurance lasts throughout the construction phase, from when you first buy your plot to when it’s ready for moving in.
Many people are attracted to new properties because of the warranty they come with. On paper, a new warranty protects you from any defects in your for the first two years and structural problems for up to ten years.
The problem is what the warranty says, and what the developer is prepared to do can be very different. We regularly hear stories from members who are struggling to get the builder to come back and fix faults. One thing you can do to help get your voice heard gets a snagging survey before you move in. This involves professionals looking around your new build home and making a snagging list. They will then help liaise with the developer and help drive through problems with your builder on your behalf.
The good news is yes, new builds are often cheaper to insure than older properties. This is because they are usually built with the latest, most secure doors and windows. This often attracts a discount from insurers as your home will be harder to break into.
One thing to consider when insuring a new home is the rebuild value. This is how much the insurance company would have to pay out to have your home rebuilt if the worst happened. Many people put down the price they paid for their home, but this means you are massively overdoing it. The amount you paid for your property includes the cost of building it, but also the desirability of the home, supply, and demand in the area, and amenities in the local area.
The simple cost of rebuilding your home is usually quite a bit less than the market value. The Association of British Insurers has a great calculator to help you work out the rebuild value of your home.
While your Buildmark warranty (see below) provides useful cover for any structural issues which stem back to the way your new home was built, it will not cover damage caused by events such as fire, flooding or subsidence.
Buildings insurance protects you for the rebuild cost of your home, rather than your home’s market value. It will cover issues relating to your roof, walls, ceilings, and floors, as well as fixtures and fittings, including doors and windows, your kitchen, and even built-in cupboards and bathroom suites.
The right insurance policy will enable you to claim for damage caused by events such as storms, floods, subsidence, fires, gas explosions, vandalism, falling trees - or even a car hitting the building.
You can buy combined contents policies, but you might still have to pay a separate excess for each part of the policy. For example, if a flood meant your property needed redecorating and many of your possessions had to be replaced, you might have to pay an excess on the building work as well as the new items.
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