New build home insurance

New Takeaways

What kind of insurance is there for a new-build home?

Fundamentally there are two types of home insurance to consider:

1. Buildings insurance.

This covers the cost of repairing damage to the structure of your property caused by events such as fire, flood, burst water pipes, subsidence and more. Buildings insurance should cover the full cost of rebuilding your home.

If you’re planning to buy a home with the help of a mortgage, your lender will usually insist that you have this cover.

It’s also worth noting that if you’re buying a leasehold property, you may find that buildings insurance is already included as part of your service charge.

2. Contents insurance.

Put simply, this protects anything that would fall to the floor if your house was turned upside down – so personal and home possessions such as clothing, furniture, jewellery, gadgets and more. It can also cover you if items are lost, stolen or taken out of your home, such as when you go on holiday. Contents insurance isn’t compulsory, but it’s definitely a good idea. Without it, you’ll have to pay for any repair or replacement out of your own pocket.

What’s the role of a warranty?

 

What does the NHBC warranty & insurance policy cover?

 

When you buy a new David Wilson home, it comes with an NHBC warranty & insurance policy, which includes a 2 year builder warranty period, followed by an 8 year insurance cover. Buildmark provides the following cover:

Answers to a few common questions

Q. Do I need buildings insurance on a brand-new home?

A. If you’re buying your new home with the help of a mortgage, your lender is likely to insist that you have buildings insurance in place. It’s also essential to have as it protects you against things like fire, flood and theft – unforeseen events that can cause serious and costly damage to any property, whether it’s old or new.

Q. Are brand-new homes fully insured?

A. Many, like all David Wilson Homes, will come with a warranty which means that certain defects and damage coming to light within a specific time period will be put right. However, you should still take out buildings insurance to protect your home, and very seriously consider contents insurance.

Q. How do I get home insurance on a brand-new property?

A. There’s no specific ‘new-build insurance’. As with all insurance products, the sheer variety of offers out there can be confusing. Both comparethemarket and MoneySuperMarket have useful guides highlighting what to consider when insuring a home.

Q. Do I need insurance in place before I complete my purchase?

A. Yes, once contracts have been exchanged, if something like a flood or fire happens before you move in (complete), you will be liable. So it’s important to get buildings insurance sorted out quickly. In terms of contents insurance, you could wait until you move in before arranging this, but remember, many insurers will give you a better deal if you take out a combined policy.

If all this talk of insurance makes you feel slightly nervy, don’t forget that the likelihood of something going wrong in your home is small. And the fact is that, once you’ve got the right amount of insurance in place, you can effectively put it to the back of your mind and get on with enjoying life in your brand-new home.

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