Structural warranty insurance

Getting to grips with new build protection

Buying a newly built home should feel exciting, not uncertain. Structural warranty insurance is designed to protect you from costly defects that emerge after construction. In the UK, most new builds come with a 10-year structural warranty. The first two years typically focus on the builder fixing defects in workmanship and materials, while years three to ten cover major structural issues such as foundations, load-bearing walls, roofs and floors.

This protection is widely used across Great Britain. NHBC’s Buildmark scheme alone covers the majority of new homes built each year, with tens of thousands of properties registered quarterly. Lenders usually require a recognised 10-year structural warranty before they will release mortgage funds for a new build. That is because serious defects can be expensive to resolve and may affect the safety and value of the property.

Rising house prices mean the financial risk of defects is higher than it was two decades ago. Typical remediation costs for structural claims can reach tens of thousands of pounds. A valid warranty helps to manage that risk and gives you a framework for getting problems assessed and repaired. At the same time, the market is evolving. New building standards from 2025 and the use of digital inspection tools are changing how warranties are underwritten, inspected and claimed on.

Insurance can offer real protection when you know exactly what is covered - and where the limits sit.

This guide explains, in plain English, what structural warranties do, where they stop, how claims usually work, and the checks to make before you buy or exchange.

What is covered and how claims typically unfold

A structural warranty focuses on latent defects that become apparent after completion. For the first two years, responsibility usually sits with the builder for defects in design, workmanship or materials. If your heating fails due to poor installation, the builder would generally be expected to fix it during this period. From years three to ten, cover narrows to major structural elements - for example, subsidence affecting foundations, roof truss failures, or significant load-bearing wall issues.

Policies often exclude wear and tear, weathering, maintenance issues, and damage from misuse or alterations. Cosmetic issues, such as hairline plaster cracks, are commonly outside scope unless they indicate a deeper structural fault. External events like flooding may not be covered unless explicitly included. Some warranties start cover from exchange of contracts, protecting deposit payments if the builder becomes insolvent before completion.

The claims process usually begins with notifying the builder during the initial two years, then the warranty provider thereafter. You will be asked for documents such as completion certificates, surveyor notes, photos and a description of the issue. The provider may arrange inspections, request further evidence, and decide on repair, contribution, or a cash settlement based on policy terms. Timelines vary, particularly for complex structural problems, and excesses or limits can apply. Transparency about limitations is crucial - a warranty is not a maintenance plan and will not fix every defect.

Who benefits most - and when it might be unnecessary

Structural warranties are most valuable for buyers of new build homes across England, Scotland and Wales, where lender approval requires a recognised 10-year scheme. They also support developers, housing associations and shared ownership buyers who need reliable sign-off for sales and funding. Homeowners gain a clear route for addressing latent structural defects without bearing full repair costs.

If you are purchasing an older property, a structural warranty is not typical. Instead, a full building survey and appropriate home insurance may be more relevant. Self-builders may rely on specialist warranties designed for custom construction. In every case, the right choice depends on build stage, lender requirements and the specific risks of the project.

Choosing your level of protection

1. Basic cover - warranty only

   • Focus: Core 10-year protection for major structural defects, plus 2-year builder obligations for workmanship and materials.
   • Good for: Standard new build purchases where the lender requires a recognised scheme and you want essential protection without extras.
   • Limitations: Often tighter claim limits, higher excesses, fewer pre-completion protections.

2. Standard cover - warranty plus deposit protection

   • Focus: As above, with cover from exchange for deposit protection if the builder becomes insolvent, and clearer defect resolution timelines.
   • Good for: Buyers exchanging early or purchasing off-plan who want added financial security before completion.
   • Limitations: May exclude certain systems or energy performance issues unless specifically endorsed.

3. Enhanced cover - warranty with inspections and add-ons

   • Focus: Includes more frequent site inspections, improved alternative accommodation allowances, and extended cover for specific components or contamination risks.
   • Good for: Complex sites, higher-value properties, or schemes with multiple units where risk and coordination are greater.
   • Limitations: Higher premiums, more documentation, and stricter conditions for claims.

Optional add-ons to discuss with your provider:

• Extended deposit protection periods
• Increased claim limits or lower excesses
• Additional cover for M&E systems where available
• Builder insolvency cover enhancements

What affects price - and typical ranges

Indicative guide only: single-home warranties can range from a low four-figure sum upward, depending on property value, risk profile, and inspection scope. Avoid relying on averages - request written quotes for accurate comparisons.

Can you apply - and what to prepare

Most buyers of new builds receive a warranty arranged by the developer, typically from exchange or completion. Self-builders and small developers can apply directly or through a specialist broker. Insurers often require technical drawings, building control sign-off, soil reports, structural calculations, and stage inspection records. You may be asked to confirm no known defects exist at the time of cover.

Common reasons for decline or higher pricing include incomplete or poor-quality documentation, unresolved site risks, prior claims, or evidence of defects. Insolvency risks in the contractor supply chain can also complicate acceptance. If your lender has a preferred list, ensure the chosen warranty provider is recognised to avoid delays at completion.

From quote to claim - simple steps

1. Gather plans, specifications, and any inspection or engineering reports.
2. Request quotes for a recognised 10-year warranty with clear limits.
3. Confirm lender acceptance of the chosen warranty provider in writing.
4. Review exclusions, excesses, and deposit protection start dates.
5. Arrange site inspections and keep records of each construction stage.
6. On completion, store certificates and policy documents safely and digitally.
7. Report defects promptly - builder first 2 years, warranty years 3-10.
8. Cooperate with inspections and keep all communications and photos organised.

Balanced view - strengths and watch-outs

Essential checks before you commit

Before exchanging contracts, read the policy schedule and technical booklet carefully. Check when cover starts, what the deposit protection includes, and whether your lender recognises the provider. Note the excesses for different claim types, any monetary caps, and how alternative accommodation is handled. Understand how the two-year builder responsibility transitions to the 3-10 year structural cover, and what evidence you must retain for claims. If your home uses new materials or methods introduced to meet the Future Homes Standard, ask how these are assessed and inspected. Keep copies of all certificates, inspection notes and correspondence.

Related options worth considering

1. Buildings insurance
   • Covers sudden perils like fire, flood and escape of water after completion. Not a substitute for latent defect cover.
2. Snagging survey
   • Independent inspection before completion to identify defects the builder should fix within the initial period.
3. Structural surveys for older homes
   • For non-new builds, a full structural survey may be more appropriate than a warranty.
4. Self-build specific warranties
   • Tailored to projects managed by owners or small developers, with staged inspections.

Frequently asked questions

Q: Is a 10-year structural warranty mandatory in the UK? A: It is not a legal requirement, but most mortgage lenders insist on a recognised 10-year warranty for new builds. Without it, securing finance can be difficult or impossible.

Q: What is the difference between the first two years and years three to ten? A: Typically, the builder handles defects in workmanship and materials during years one and two. From years three to ten, cover narrows to major structural defects like foundations and load-bearing walls.

Q: Are cosmetic issues covered, such as hairline cracks? A: Usually not, unless they indicate an underlying structural problem. Cosmetic settlement cracks are common in new builds and are generally considered normal wear rather than a defect.

Q: How much do structural repairs typically cost? A: Costs vary widely by issue and property. Many structural claims run into tens of thousands of pounds, reflecting the complexity of foundation and load-bearing repairs.

Q: Will new energy standards affect claims? A: The Future Homes Standard introduces new materials and methods. Warranty providers are adjusting inspections and policies, which may influence claim decisions and pricing as the industry adapts.

Q: Can technology speed up claims? A: Digital inspections, data analytics and better documentation can improve assessment speed and transparency. They do not remove policy limits, but they can reduce friction and error.

What to do next

Take a breath and compare options calmly. Ask your developer or broker which providers your lender accepts, then request written quotes that clearly set out limits, exclusions and inspection schedules. Read the technical booklet in full, keep copies of all documents, and only proceed when you understand what is - and is not - covered. You remain in control throughout.

Important note

This guide is general information, not personal financial advice. Policy terms vary by provider, build method and property type. Always read your policy schedule and technical booklet carefully, and confirm lender acceptance before you commit.