New Build Warranties Explained: What might or might not be covered?
If you own a flat in a newly constructed development, there is a good chance the building benefits from a new build warranty.
Many leaseholders, directors and management companies assume that because a building is under warranty, any defect or issue will automatically be repaired at no cost. Unfortunately, this is not always the case.
Understanding how new build warranties work, what they typically cover and what limitations apply can help avoid confusion and ensure defects are reported correctly.
What Is a New Build Warranty?
A new build warranty is an insurance-backed protection scheme designed to provide cover for certain defects in newly constructed properties.
The warranty is intended to provide reassurance to purchasers, mortgage lenders and property owners by offering protection against certain construction defects that may arise after completion.
Common providers include:
- NHBC Buildmark
- Premier Guarantee
- LABC Warranty
- Checkmate
- Advantage
- Build-Zone
The specific cover will depend on the warranty provider and policy wording.
Why Are New Build Warranties Important?
New build warranties help provide financial protection if significant defects arise after the property has been completed and occupied.
Without warranty protection, leaseholders, developers and building owners could face substantial costs if serious defects are discovered.
Most mortgage lenders also require an acceptable warranty provider before lending on a newly constructed property.
How Long Does a New Build Warranty Last?
Most new build warranties provide cover for 10 years from the date of practica
l completion.
However, the cover available often changes over the life of the policy.
The Initial Defects Period
Most warranties include an initial defects period, typically covering the first two years after completion.
During this period, the developer is generally responsible for returning to rectify defects that arise as a result of workmanship, materials or construction issues.
Examples may include:
- Defective finishes
- Cracking beyond normal settlement
- Faulty installations
- Defective windows or doors
- Plumbing defects
- Poor workmanship
The exact process for reporting defects will depend on the developer and warranty provider.
The Structural Warranty Period
Following the initial defects period, the warranty usually transitions into a longer insurance-backed phase.
This often extends for the remainder of the 10-year warranty period.
The focus of cover generally shifts towards significant structural defects rather than minor defects or cosmetic issues.
Examples may include:
- Foundations
- Structural walls
- Structural floors
- Structural roofs
- Load-bearing elements
- Major structural defects
Policy terms and definitions vary between providers.
What Is Commonly Covered?
Cover will vary depending on the provider and policy wording, but may include:
- Structural defects
- Foundation defects
- Failure of load-bearing elements
- Certain waterproofing failures
- Serious construction defects
- Damage resulting from insured structural failures
The warranty should always be reviewed carefully to understand the exact scope of protection.
What Is Not Usually Covered?
This is one of the most misunderstood areas of new build warranties.
Many issues that residents consider defects may not actually fall within the warranty cover.
Common exclusions often include:
- General wear and tear
- Lack of maintenance
- Damage caused by residents
- Cosmetic defects reported outside the defects period
- Routine maintenance items
- Mechanical breakdown
- Condensation caused by occupation and lifestyle factors
- Items requiring routine servicing
- Damage caused by alterations
Each warranty provider will have its own exclusions and limitations.
Snagging vs Structural Defects
Many people confuse snagging items with warranty claims.
Snagging Items
Typically include:
- Decoration defects
- Minor cracks
- Poor finishes
- Damaged fittings
- Missing items
These are generally addressed during the initial defects period.
Structural Defects
Typically involve defects affecting the structure or integrity of the building.
These are more likely to be considered under the longer-term warranty cover.
Common Misconceptions
"The Building Is Under Warranty, So Everything Is Covered"
No.
New build warranties provide cover for specific defects and are subject to exclusions, limitations and policy conditions.
"The Warranty Covers Maintenance"
No.
A new build warranty is not a maintenance contract.
Routine maintenance, servicing and repairs remain the responsibility of the building owner, management company or leaseholders in accordance with the lease.
"Any Crack Means There Is a Structural Defect"
Not necessarily.
Some settlement and minor cracking can occur naturally as buildings dry out and settle following construction.
Professional advice may be required where concerns arise.
"The Warranty Provider Will Automatically Repair Problems"
Not always.
Claims are assessed against the warranty terms and supporting evidence.
Not every defect will qualify for cover.
"The Warranty Covers Building Services"
Not usually.
Items such as lifts, pumps, fire alarm systems, gates and mechanical equipment are often covered by separate manufacturer warranties, maintenance contracts or engineering insurance arrangements rather than the structural warranty itself.
The Importance of Early Reporting
Where defects are identified, they should be reported promptly.
Delays can sometimes make it more difficult to establish responsibility or pursue claims.
Good record keeping is important and may include:
- Photographs
- Correspondence
- Inspection reports
- Contractor reports
- Resident complaints
Early intervention can often prevent minor issues becoming major problems.
What Should Directors Be Doing?
For newly constructed developments, directors should ensure that:
- Warranty documentation is retained
- Defects are reported promptly
- Common parts are inspected regularly
- Maintenance contracts are established
- Building records are maintained
- Developer obligations are monitored
- Residents understand the reporting process
The first few years following completion are often critical for identifying defects and protecting the interests of leaseholders.
How Archery Estates Can Help
At Archery Estates, we regularly assist Freeholders, Resident Management Companies (RMCs) and Right to Manage Companies (RTMs) with new build developments and warranty-related matters.
We can assist with:
- Defect identification and reporting
- Developer liaison
- Warranty claim coordination
- Common parts inspections
- Contractor management
- Building safety compliance
- Planned maintenance programmes
- Handover and mobilisation support
Our aim is to help ensure that defects are identified early, responsibilities are understood and appropriate action is taken to protect the interests of leaseholders and directors.
Need Advice?
If your development is still within its warranty period and you have concerns about defects, workmanship or structural issues, contact Archery Estates for practical advice and guidance.