Home Insurance for New Builds UK

Do you need insurance on a new build home?

Yes, you need home insurance on a new build property, and in most cases your mortgage lender will require buildings insurance as a condition of the loan. However, new build insurance works slightly differently from insurance on an older property because of the structural warranties provided by the developer and the reduced risk of certain types of damage in a brand-new home.

Understanding how your structural warranty (such as an NHBC Buildmark policy) interacts with your home insurance is essential to ensure you have the right cover without paying for unnecessary duplication.

NHBC warranty and what it covers

Most new build homes in the UK come with an NHBC (National House Building Council) Buildmark warranty, which provides protection in three stages over ten years:

• Years 1–2 (Builder warranty period): The developer is responsible for fixing any defects that result from their failure to meet NHBC standards. This covers things like poor workmanship, faulty materials, and non-compliance with building regulations
• Years 3–10 (NHBC insurance period): NHBC provides insurance against damage caused by defects in specified structural elements, including foundations, load-bearing walls, the roof structure, external render and cladding, and below-ground drainage. This is structural cover only — it does not cover cosmetic defects, appliances, or wear and tear
• Pre-completion: If the developer goes into administration before completing your home, NHBC may cover the cost of completing the build or refund your deposit (up to £100,000 for exchange deposits)

Alternative warranty providers include LABC, Premier Guarantee, and Zurich, each offering similar 10-year structural cover. Check which provider covers your property and understand the specific terms of their policy.

What home insurance covers that warranties do not

While the NHBC warranty covers structural defects, you still need standard home insurance for everything else:

• Fire, flood, and storm damage: Not covered by structural warranties
• Theft and burglary: Contents insurance for your possessions
• Accidental damage: Spills, breakages, and other unintentional damage
• Liability cover: Protection if someone is injured on your property
• Subsidence: Covered by home insurance from day one, while the NHBC warranty only covers subsidence caused by defective design or construction
• Escape of water: Burst pipes and leaks, which can cause extensive damage even in new homes

When to arrange new build insurance

You need buildings insurance in place from the point of exchange of contracts, as this is when you take on the risk of damage to the property (even though you do not yet own it). Your mortgage lender will require evidence of insurance before releasing the funds at completion.

For new builds purchased off-plan, the timing can be more complex. The developer typically maintains insurance during the construction phase, but you need to arrange your own cover to start from the completion date. Confirm with your solicitor exactly when the responsibility transfers to you.

Contents insurance should start from the day you move in, covering your furniture, electronics, clothing, and other personal belongings. Many insurers offer combined buildings and contents policies at a discount compared to buying them separately.

Common new build insurance issues

New build homeowners sometimes face specific insurance challenges. Snagging issues — minor defects discovered after moving in, such as cracks in plaster, ill-fitting doors, or plumbing leaks — are the developer's responsibility under the builder warranty period (years 1–2) and should not be claimed on your home insurance.

If you make a home insurance claim for something that is actually a builder's defect, the insurer may reject it or pursue the developer for the cost. This can complicate your claims history and potentially increase your future premiums.

Rebuild costs for new builds

Your buildings insurance should be based on the rebuild cost of your property, not its market value or the price you paid. For new builds, the developer or your NHBC documentation may provide a rebuild figure. If not, the Royal Institution of Chartered Surveyors (RICS) offers a rebuild cost calculator, though a professional valuation is more accurate.

Rebuild costs for new builds are typically lower than for older properties of similar size because they use standard modern construction methods and materials. However, costs vary significantly by region, with London and the South East being substantially more expensive than other areas.

Get expert help with new build insurance

Finding the right insurance for a new build property means understanding how your structural warranty interacts with your home insurance and ensuring you have comprehensive cover without paying for duplication. A specialist broker can help you navigate this and find competitive premiums that reflect the lower risk profile of a new build home.

Nesto connects new build homeowners with experienced home insurance brokers who understand the specific requirements of new properties. Get a tailored quote today.