When we purchase a new build home the last thing on our mind is the potential repairs or damages that could incur in the future. However, these occurrences do happen and you should understand the warranty that comes with new build homes. There are a lot of intricacies that ride along with home building, and the chances that an error could have been made during one of those increases. You’re probably wondering if you should purchase insurance for your new home, and if so, what kind of insurance.
To what extent are you covered when you first purchase your home? The answers are offered below:
Default coverage
The bulk of newly built homes are covered by a document known as the Buildmark Certificate. This warranty is provided by the National House Building Council (NHBC) and covers your house for ten years after being built. It might sound like this is all you need in order to remain covered with a new house, but it’s important to remember that this will only cover damages associated with problems originating from the builders. The Buildmark Certificate will only cover you for a period of up to ten years.
This coverage will also only extend up to a specific price and you won’t be covered for other damages incurred. You also won’t have coverage for any problems in the event of natural disasters or acts of god. This can be a problem if you’re worried about flooding, or accidents that may cause house damage. After purchasing a brand new home, the last thing you want to be concerned about where your residence will be after severe damages. You just got a brand new home! You should be focused on enjoying it and not worrying over if anything happens.
Contents are not covered by buildmark certificates
The contents of your home are not covered by the Buildmark Certificate, therefore the professionals from MoneyExpert.com will tell you it’s best to get contents insurance as well. As this will help cover your personal possessions. They also state that the maximum payout of the Buildmark Certificate is up to the price the house was purchased. If there was a building issue that caused the home to be unusable, and cause damage to the contents inside you would not be covered for the additional cost of the contents. So even if the builders could be held accountable for the damages that you incurred, you won’t be given any payout to replace your belongings.
Your mortgage lender probably isn’t going to push you on this one because they’re more concerned about damages to the property. But if you have a newly furnished home, chances are you aren’t going to want to have to replace that new couch set you just purchased. Having content insurance is going to protect you.
Having your own home coverage
While the Buildmark Certificate protects new home owners against building errors, or building standards not on par with regulations it does not cover your home in the case of natural disasters. If you want to be covered against accidents or natural disasters, it’s best you invest in your own insurance. In some cases, your mortgage lender will make this a mandatory process, if they don’t, you should look into obtaining your own insurance regardless. This way you’ll be covered with a payout that could potentially cover you for financial crises such as loss of work – and even a temporary place of residence while repairs are being conducted in your home.
Obtaining an insurance quote
If you are looking to obtain insurance for your new build home (which you should definitely do), insurance companies will probably require a postal code. This way they can verify the cost of premiums associated with the area and it will heighten or reduce premiums dependant on a variety of factors. Chances are if you’re in a new-build home, they may not have that postal code in order to obtain a history of information on your community. The developer of the home is responsible for registering the new postal code area and they can always be contacted in order to establish this has been done prior to looking for a quote.
When purchasing a new build home there are a few components to consider regarding insurance. While the Buildmark Certificate may cover you against damages that the builders would be responsible for, it will not cover you for other unfortunate events. A bulk of mortgage lenders will require you to obtain your own insurance prior to purchasing your home. However, you should also look into getting contents insurance to protect yourself against the potential for damages (especially those expensive electronics). Don’t be afraid to contact the developer for information regarding your postal code so you can get that insurance quote and protect yourself.
