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New build home insurance

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Home insurance for new builds

Most new build homes usually come with a 10-year warranty, but this will only cover issues that have been caused by the developer.

To make sure you’re covered for anything else that might affect your home and cause expensive damage - like flooding, fire, or subsidence - you’ll need home insurance.

And if you’re using a mortgage to buy your home, it’s usually a condition of your lender that you have buildings insurance in place from the date you exchange contracts.

New build insurance

What is classed as a new build?

Generally, a property is considered to be a new build if it’s been built or converted within the last two years and hasn’t been owned or lived in by anyone else.

It’s often possible to buy a new build home before it’s built, by buying off-plan from a builder or developer.

Buying a new build home usually means you can tailor certain features of the design. And often some of the fixtures and fittings are included in the price.

New homes also typically benefit from having the latest energy-efficient appliances and technology, making them more eco-friendly and cheaper to run.

Why do I need new build home insurance?

Once you’ve exchanged contracts on your new build home, you’ll be responsible for anything that’s not covered by the developer's warranty.

Taking out buildings insurance will make sure you’re protected against unexpected structural issues that the builder isn’t responsible for, like damage caused by storms, fire or flooding.

And if you’ve got a mortgage, it’s usually compulsory to have cover in place before you exchange.

It’s also a good idea to get a contents insurance that starts as soon as you move in to protect the belongings in your new home against damage, loss and theft.

You can buy buildings and contents insurance together as a combined policy or take them out separately. Often, it’s cheaper to purchase them combined, but it’s always worth comparing your options.

What’s covered?

Buildings insurance is designed to protect the structure and permanent fixtures and fittings of your new build home.

It typically covers the cost of any loss and damage caused by:

  • Fire, smoke and explosions
  • Floods and storms
  • Vandalism
  • Subsidence
  • Fallen trees, lamp posts, and aerials or satellite dishes
  • Collisions from vehicles or aircrafts

It can also cover:

  • The cost for temporary accommodation if your home’s not safe to live in
  • Accidental damage to underground pipes and drains
  • Legal expenses if a claim is made against you as the homeowner

Free £250 home excess cover, only with GoCompare^

If you need to claim on your home insurance - for example, if your building is damaged by subsidence or your possessions are stolen - your free home excess cover will refund up to £250 of your excess.

There’s no hidden charge. But you won't be covered for things like accidental loss such as leaving a laptop on a train or accidental damage, such as spilling wine on your carpet or drilling through a pipe.

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^UK residents and home insurance purchases only. Excess refunded after claim settled. Excludes accidental loss or damage claims made on your home insurance. Full T&Cs apply.

gio compario home insurance free £250 excess cover

How can I reduce the cost of my home insurance?

While you can often get a better deal on home insurance with a new home, there are still ways to help reduce costs further:

  1. Add extra security measures

    Installing burglar alarms, security lights and surveillance cameras can reassure insurers, but make sure they’re approved, or it may not affect your premiums at all

  2. Compare quotes

    Instead of simply auto-renewing with your current insurer, you can make good savings by shopping around and comparing quotes

  3. Pay annually

    It’s cheaper to pay annually rather than monthly

  4. Build up your no-claims bonus

    If it will cost less than your excess (or slightly more) to repair damage or replace items, it may be worth paying for it yourself rather than claiming and losing your no-claims bonus

  5. Buy combined cover

    Choosing a policy that combines buildings and contents cover is usually cheaper than purchasing them separately

What guarantees do new build homes come with?

Most new build homes come with a building or structural warranty that’s taken out by the builder or developer. This is designed to protect you if anything goes wrong.

The most common warranty is known as a Buildmark, which comes from the National House Building Council (NHBC).

Once your home is built, the warranty is split into two periods.

In the first two years, you’re covered by defects insurance which protects you against any issues caused by work the builder has done - like leaking windows or faulty heating.

And from year three to 10 years from the date you complete on the purchase of your home, the warranty also provides you with structural insurance.

However, you’ll need home insurance to cover any loss or damage to your home that’s outside of your builder’s control, like storm damage, fire and flooding.

Advantages and disadvantages of buying a new build

There are lots of things to think about when you’re buying a new home, so it’s worth weighing up the pros and cons carefully:

Pros

  • New builds come with a 10-year guarantee
  • You can buy them off-plan and tailor certain aspects
  • Fixtures and fittings are often included in the price
  • You can benefit from high-spec materials and safety features
  • New homes are usually more energy efficient
  • Home insurance is often cheaper for new builds

Cons

  • Developers can pack properties in tightly, giving you less space
  • There may be a maintenance fee for shared areas like playgrounds
  • A new build may come with a snagging list of issues to resolve
  • The move-in date can be delayed if the building doesn’t go to plan
  • The warranty will only cover you for builder-related issues
  • There won’t be an established community for a few years

Frequently asked questions

Sometimes, because new homes are built with all the latest technology. Which means they cost less to run and they’re often fitted with more secure doors, windows and locks. You'll get cheaper insurance quotes if your home's less likely to be broken into too.

This isn’t always the case though, which is why it’s a good idea to compare home insurance quotes from a range of insurers to find cover that suits your needs. As well as comparing prices, you could also save money on your home insurance by paying annually and building up your no-claims discount.

Taking out new build insurance is the same as buying home insurance for any other property. Get quotes with us by filling in a few details about you and your new home.

The only thing that might be slightly different is that some insurers might not recognise your postcode. This is because your home is so new it’s not been logged on that insurer’s database yet. If this happens, you can either contact the insurer directly, or shop around for another provider.

To check whether your postcode has been registered, use the Royal Mail’s postcode finder. If you can’t find it, you can let Royal Mail know so it can update the database.

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Page last reviewed: 09 January 2023
Page reviewed by Ceri McMillan