1. What is building warranty insurance?
It’s a specialist insurance policy that protects homeowners against structural defects or faults in new builds, extensions, or major renovations for a set number of years after completion.

2. Why do I need it if my builder gives me a guarantee?
A builder’s guarantee may only last a short time and often becomes worthless if the builder goes out of business. Building warranty insurance ensures you’re covered even if the builder disappears.

3. How long does the cover usually last?
Most policies last 10 years from the date of completion, giving long-term peace of mind.

4. Does it cover problems that appear years after the work is finished?
Yes – structural issues or major defects that surface years later are typically covered, which is especially important as many faults don’t show up immediately.

5. Is building warranty insurance required by law?
It isn’t always legally required, but mortgage lenders often insist on it for new builds, and it can make selling the property much easier.

6. How does it help when selling my property?
Having warranty insurance in place makes your property more attractive to buyers, since they know the building work is protected against costly defects.

7. Will it help me get a mortgage?
Yes – most banks and mortgage lenders require building warranty insurance for newly built homes before they’ll approve a loan.

8. What types of work are covered?
It usually covers new builds, conversions, and sometimes major extensions or refurbishments, depending on the policy.

9. What exactly does it protect me against?
It generally covers structural defects, design flaws, or poor workmanship that cause significant issues with the building.

10. Does it protect future buyers too?
Yes – most building warranty insurance policies are transferable to new owners within the cover period, which adds value to your property.

11. What happens if I don’t take it out?
Without warranty insurance, you could face huge repair bills if serious defects appear, and you may struggle to sell or remortgage the property.

12. Is it a one-off cost or ongoing payments?
Usually, it’s a one-time premium paid upfront, with cover lasting for the full policy term (commonly 10 years).

13. How do I make a claim if something goes wrong?
If a defect appears, you submit a claim to the insurer, who will arrange for repairs or cover the cost, subject to the policy terms.

14. Are there any exclusions I should know about?
Yes – most policies exclude general wear and tear, minor cosmetic issues, and damage caused by lack of maintenance.

15. What’s the biggest benefit of having building warranty insurance?
Peace of mind – knowing you’re financially protected against serious structural problems, even if your builder can’t or won’t help.

To find out more or discuss your specific project, get in touch with our team today. Email: info@nabc.org.uk Phone: 01752 936 733