New build home insurance

  • Buy buildings and contents insurance for your brand-new home & enjoy a whole year of Meerkat Meals & Meerkat Movies*

Home insurance for new builds

The lure of lower heating bills and immaculate kitchens make new builds attractive to many buyers, but you need to make sure you have a level of insurance that properly protects your asset.

A new build might well come with a warranty, but that will only cover you for issues specifically relating to the building work carried out by a developer. That means it’s still a good idea to take out buildings insurance that covers you beyond that, including for flood, fire or subsidence. In fact – your mortgage provider may insist on it.

This guide should answer any questions you might have about insurance for your new build.

What’s classed as a new build?

A new build house is a brand-new property that’s never been owned, or lived in, by anyone else.

One of the most popular ways to buy a new build is off-plan, from a builder or developer. This means you buy your home before building is completed.

What does new build insurance cover?

Although a new build warranty will cover your home against any defects or structural damage for up to 10 years, it’s still important to have home insurance in place for everything else.

A good new build insurance policy should include vital home insurance elements such as:

  • Buildings insurance - this covers the structure of your new home plus any permanent fixtures and fittings, such as a fitted kitchen and bathroom. It can cover the cost of repairing or even rebuilding your property if it’s damaged or destroyed due to fire, flood or subsidence. Mortgage providers usually insist you have buildings insurance in place from the moment you exchange contracts.
  • Contents insurance - this could cover the cost of repairing or replacing the contents of your new home if they’re stolen, damaged or destroyed. Combining your contents cover with buildings insurance can often work out cheaper than buying two separate policies.

Most insurance providers also offer a range of add-ons, so you can tailor your policy to suit your needs, for example:

Accidental damage - if you spill red wine on your new carpet or break a window by accident, this can help cover the damage costs.

Personal possessions - this will cover possessions you take with you, outside of your home. For example, your phone, purse or jewellery.

Legal expenses cover - this can help cover any legal costs associated with property disputes.

Do I have to have insurance for my new home?

You may be wondering if you really need to take out home insurance on a new build. Buildings insurance isn’t a legal requirement, but your mortgage provider might insist you have it. Ultimately, you’re protecting your investment against damage due to fire, storms, flood or theft.

Frequently asked questions

What are the advantages of buying a new build?

There are many advantages when it comes to buying a new build home:

  • You won’t be caught up in the hassle of an onward chain or risk being gazumped. Once your finances are in place and your new property is ready, you can move straight in.
  • Some off-plan developments give new owners the choice of certain design features, such as door positioning, garden landscaping and the colour of kitchen units, so you can tailor your new home to your tastes.
  • If you buy off-plan in an area where house prices are rising, you’ll be building up equity before you’ve even moved in.
  • There’s no need to redecorate or carry out repair works – just move your furniture in.
  • New build properties are typically built with energy-efficient features, such as double or triple glazing and roof insulation, so utility bills may be cheaper.
  • Building standards now require new build properties to be fitted with safety features, such as industry-approved door and window locks, security lighting and alarms. These security features not only keep your home protected but could also help reduce your home insurance premiums.

Why would I need insurance for my new build?

More and more people are buying new homes – in 2019, 170,000 new homes were built – an 8% increase compared with the previous year.

New homes offer lots of benefits, but they aren’t tried and tested. That’s another reason why insurance is still important. For example, once you move in you might come across a few problems – leaking showers, poor tiling, for example.

And to make sure you’re covered for any repairs, you should confirm that your builder is registered with the National House-Building Council (NHBC), because damage due to poor or faulty workmanship often isn’t covered under a home insurance policy.

What is the National House-Building Council (NHBC)?

The NHBC offers the Buildmark Certificate – a 10-year warranty for new homes and new conversions. This means your builder must rectify any problems found in the first two years of building use, such as a leaky shower, but not issues down to simple wear and tear.

The following three to 10 years are covered for structural problems resulting from the build – which includes the roof, floor, staircases, windows and doors.

NHBC Buildmark also covers you if you’ve exchanged contracts and the builder goes bankrupt before your property’s finished.

What happens if my new house doesn’t have an NHBC Buildmark Certificate?

Around 20% of builders don’t register with the NHBC, so there’s no guarantee you’ll have a Buildmark Certificate. If not, ask your builder why they haven’t registered with the NHBC. They may have legitimate reasons – perhaps they’re a small company and can’t afford the fees – but it’s a good idea to find out what the reasons are.

If you still want to go ahead and buy the house, you’ll need to take out your own buildings and contents insurance for your new build. Remember, you should buy buildings insurance from the date you exchange contracts.

Can I get the Buildmark Certificate on a new conversion?

Yes, if you’re buying a newly converted property you may be able to get a Buildmark Certificate. This will give you reassurance that you’re protected if problems arise in the future.

But be aware that on conversion properties, Buildmark will sometimes add exclusions to the cover – these will be printed on your insurance certificate. It’s possible that your mortgage provider won’t require you to have Buildmark cover, so if the property doesn’t have the certificate you should consider whether you need to get one.

I’m moving into a home that’s a couple of years old. Is the Buildmark Certificate transferable to me?

Yes, the Buildmark Certificate covers the property, not the owner, and is fully transferable during the lifespan of the certificate. So, whether you’re buying or selling a home with a Buildmark policy that’s still in force, the new owner benefits from any remaining cover. Ideally, the policy documents should be handed over on completion.

What level of cover do I have with Buildmark?

The most Buildmark will pay out is the original purchase price of the property, as shown on the insurance certificate, up to a maximum of:

  • £1,000,000 for a newly built home (up to a maximum of £25 million for all homes in a continuous structure).


  • £500,000 for a converted home (up to a maximum of £5 million for all homes in a continuous structure).

The limits are increased by 5% of the original limit on each completion date anniversary, to allow for inflation. Buildmark then deducts any amount it has paid, or is going to have to pay, for claims it’s accepted. You can see full details in the Buildmark Policy Document.

There isn’t any kind of excess on the policy, so you don't have to pay towards claims that are accepted. However, there’s a minimum claim value shown in the documents.

Do I still need buildings insurance for my new build

Your mortgage provider will usually require you to have buildings insurance. If you own your home outright, without a mortgage, you aren’t required to have this insurance. However, it might still be a good idea as, without it, you won’t be covered if flooding, fire, water leaks or subsidence damage the building.

What about home contents insurance?

Again, it makes sense to have it. Neither NBHC nor buildings insurance will cover you for theft or accidental damage to the contents of your home, so you’ll need to make sure your they’re protected. Consider combining your buildings and contents policies, as it can work out cheaper than buying them separately.

Do I need legal expenses cover?

If you end up in a dispute with your builder or new neighbours, legal expenses cover could prove useful. This optional extra can be added to your home insurance to protect you against legal costs relating to your new home.

Most legal expenses policies also include a 24/7 legal helpline, which could advise on other legal matters, such as personal injury claims, employment disputes and tax matters.

If you do decide to opt for legal expenses cover, check the terms and conditions carefully before you buy, so you know exactly what you’d be covered for and whether it’s worth the extra cost.

Is insurance cheaper for new builds?

New builds are often cheaper to insure than older properties. This is because they’re usually built with high-standard safety features, so there’s less risk of a break-in.

A brand-new roof, wiring and plumbing systems also mean there’s less risk of making a claim on a new build than with an older house.

How much does home insurance cost?

Half our customers could get buildings and contents insurance for
a year**
Half our customers could get contents insurance from
a year***
Half our customers could get buildings insurance from
a year****

**50% of people could achieve a quote of £147 per year for their buildings and contents home insurance based on Compare the Market data in November 2020.

***50% of people could achieve a quote of £68 per year for their contents home insurance based on Compare the Market data in November 2020.

****50% of people could achieve a quote of £115 per year for their buildings home insurance based on Compare the Market data in November 2020.

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What do I need to get a quote?

To get a quote for your new build home, you’ll need to give us a few details about yourself and your property, including:

  • details about your new home
  • the rebuild value of your home
  • the level of cover you need.

You’ll also have the opportunity to tailor your search by adding any extras you might need. Once we have the information we need, we’ll give you a list of suitable quotes to choose from.

Chris King

From the Home team

What our expert says

“Remember to make sure your new postcode is registered. You can do this by contacting your builder/developer or Royal Mail directly. Let your insurance provider know what the postcode is. If your postcode isn’t on their system, it can be difficult to assess risk for insurance purposes and provide an accurate quote.”

Why use Compare the Market?

We compare 74 home insurance products^^ Get a quote in 12 minutes^^^ Save up to £104 by switching^^^^

^^Correct as of November 2020.

^^^On average it can take less than 12 minutes to complete a home insurance quote through Compare the Market, based on data in November 2020.

^^^^Based on online independent research by Consumer Intelligence during November 2020. 50% of customers could achieve this saving on their Buildings and Contents insurance through Compare the Market.

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