New Home Warranty
10-Year New Home Warranty
A New Home Warranty (or New Home Guarantee) from Protek is an insurance policy that provides 10-year cover for consumers purchasing a new or newly converted home.
It is designed to be put in place by housebuilders and developers building or converting properties to sell. Once the build is completed, it provides cover for the new home owner against major structural defects caused by defects in the design, workmanship and materials for 10 years following completion.
A 10 Year new home warranty on a newly completed home is usually a requirement for mortgage finance. The UK Finance Handbook and Building Society Association (BSA) Rules specifically refer to it. Lenders will not provide mortgages if the property has not been inspected by the warranty provider from the start. It’s imperative to register your development for a New Home Warranty before starting works on site
What types of developments are covered by a new home guarantee?
A New home warranty is designed to cover new and newly converted developments. They can cater for almost any project size, including low and high-rise housing and mixed-use developments. The product provides 10-years cover. This is split between the Developers Defect Period and the Structural Insurance Period.
What is the Developers Defect Period on a New Home Warranty?
This is usually the first two years following completion, during which the builder or developer is contractually obliged to fix or replace defects or problems caused as a result of a failure to meet the technical standards.
Is the home buyer protected by a new build home warranty if the developer fails during the defects period?
The insurer guarantees the developers defect period and will respond in the event the developer fails to remedy a justified defect, due to insolvency etc..
What is the Structural Insurance Period on a 10 Year New Home Warranty?
Once the defect period ends, the insurer continues to provide cover for the cost of complete or partial rebuilding or rectifying work the structure of the completed property for a further 8 years.
Should a New Home Warranty be Consumer Coded?
A Protek New Home Warranty covers developments registered with it under the Consumer Code For New Homes. This has several advantages. Not only is a consumer purchasing a property backed by a lender-approved New Home Warranty, but they are also doing so in the knowledge that their developer is following best practices in respect of the marketing, selling, and purchasing of new homes. As a result, the consumer should receive good customer service and a fair sales process. To be eligible for the scheme, housebuilders and developers need to make a registration application. This simple process is completely free and can be initiated online. Once accepted for inclusion on the scheme as a registered developer, you will be able to register your development sites quickly and efficiently.
What occurs if the property becomes uninhabitable during repairs?
A new home warranty policy should have an additional extensions section of cover which provides for:
Cover for additional costs and expenses incurred by the Policyholder solely in order to comply with Building Regulations or local authority or other statutory provisions.
Alternative Accommodation and Expenses
Cover for the additional cost and expenses incurred by the Policyholder in respect of removal, storage and alternative accommodation relating to a claim whilst the completed building at the project address is uninhabitable, subject to Protek’s prior written consent to such costs and expenses.
Professional Fees
Cover for architects, surveyors, legal, consulting engineers and other fees necessarily incurred by the Policyholder in relation to the complete or partial rebuilding or rectifying work to the completed building at the project address.
Removal of Debris
Cover for the costs and expenses incurred by the Policyholder in respect of removal of debris, dismantling or demolishing, and shoring up of the completed building at the project address.
Can I retain the asset?
It is possible to provide protection for the development should you as developer choose to retain the development (even if it’s only partially). You can dovetail your exposure to align with the construction contract and gain certainty over future changes in any investment or sell model – even if you initiate these changes several years into the program.
Why should you use Protek for your next development?
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Choosing Protek to provide a new home warranty on your next development provides you with several advantages: Firstly, you will be delivering a beautiful new home to your customer, inspected by our technical auditing team and backed by a lender-approved comprehensive warranty. In addition, each one of your new homeowners is provided with insurance protection and a sales process protected by the Consumer Code For New Homes. |
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Consumer Code protection for a new home purchase is important. That is why Protek is a Consumer Code For New Homes User.
It signifies that you are selling properties with a demonstratable undertaking to ensure that you are following best practice in respect of the marketing, selling, and purchasing of new homes. The Consumer Code For New Homes sets standards for after-sales customer care service and also provides the necessary training to your development team. |
Benefits of a Protek New Homes Warranty
FREE Registration
The registration process, which is very simple can be initiated online It is completely free. To get started, simply click here.10 or 12 Years Cover
- Cover is provided for 10 or 12 years from the date of completion.
- The developer is responsible for defects occurring in the first 2 years of cover.
- Protection in the event of the developer ceasing to trade or if they fail to meet their obligations.
- Full risk transfer occurs in years 3 to 10
Contaminated Land Cover
The new home warranty policy will indemnify the homeowner in respect of remediation expenses incurred in treating or isolating or removing any substance from the policyholder’s land in a controlled manner in accordance with the requirements of any statutory notice.Non-Compliance with Building regulations cover available
- Structure
- Fire Safety
- Site preparation and resistance to moisture
- Hygiene
- Drainage and waste disposal
- Heat-producing appliances
- Protection from falling, collision and impact
- Glazing – safety in relation to impact opening and cleaning
ADDITIONAL COVER
- additional costs and expenses cover
- alternative accommodation
- removal of debris
- professional fees
Undertaking a conversion or regeneration project?
Cover for refurbishments and conversions is also available under our New Homes Warranty.Service Benefits
RESPONSIVE TECHNICAL AUDITING
Our surveyors use a dedicated reporting system. As a result, the site-based reporting process is as straightforward as possible. Ultimately, we aim to ensure that you focus on delivering quality homes efficiently. Our reporting is clear and specifically designed to keep you informed as the project progresses. This helps you meet the technical standards at each key construction phase.PARTNERED BUILDING CONTROL
Partnered Building Control provision is available. This enables us to deliver a seamless service on-site, linking the audit and building control functions.REGISTER YOUR DEVELOMENT WITH PROTEK FOR FREE HERE
