Building warranties are for homes that are less than ten years old or for properties that have not yet been built. If you are buying a newly built home, or you are building one for yourself, then you may be required to get a building warranty by your mortgage lender.
They can protect you and your investment from several risks beyond your control, give you added peace of mind as you move forward with your house purchase, and eventually move into your brand-new home.
Here is a quick and simple guide to why you need a building warranty, where you can get one from, and the best time in the purchasing process to get one.
Where Do I Get A Building Warranty?
There are many building warranty providers that can help you. You should choose one with lots of experience in the property market and lots of satisfied customers.
The team at Buildsafe has decades of experience assessing property and housing developments. They are one of the country’s best building warranty providers and are experts at helping people to buy new builds and self-build homes. You get peace of mind when you have a building warranty.
Companies that offer building warranties may need to inspect the property, if it has been built, or assess the plans first. They can help talk you through the process, step-by-step, but it will help a lot if you have the building plans and any paperwork from the developer close at hand.
What Does A Building Warranty Cover?
There are many different warranties available. The specifics of the warranty’s coverage, and the terms of the warranty, can vary quite a lot.
Most building warranties will include deposit protection. When you are buying a new build home, you will have to pay a deposit before your home is completed, perhaps before the building work has even begun. The warranty will protect your deposit if the developer goes bust or bankrupt before completion.
Building warranties will also protect you against construction defects, usually for the first two years of ownership. If a developer cuts corners during the build, or uses defective materials to build your home, you are insured for the cost of repairs or loss of property value. Structural insurance should also be part of the warranty that will cover you against structural issues after the first two years.
Many building warranties will also include a building control cover. If your developer fails to meet building regulations, this will cover the cost to put things right. There should also be contaminated land cover that will pay for any costs of removing contamination or construction waste from your plot that may be left by building contractors. This can be very expensive to move and can also pose an environmental hazard.
How Do I Pick The Right Building Warranty?
There are many different warranties on the market supplied by a range of building warranty providers. You can find guidelines from The Council of Mortage Lenders that can help you to choose the right warranty for you and your property.
When you are looking for a building warranty, make sure it is accepted by your mortgage lender, and look at the terms of inspection to see how often your home may be checked by your building warranty provider. With all the right paperwork in place, you should be able to move forward with your new build purchase, confident that you are fully covered, and your lender is happy.
Building warranties and the coverage they offer should not be confused with other types of property insurance. A building warranty is not the same as home insurance and does not give you the same type of coverage. It is important that you research the differences, and are aware
When Should I Get A Building Warranty?
If you are buying a new build property, the sooner you get a building warranty, the better. Because a building warranty can protect your deposit, you should get one as soon as you can after signing agreements with a housing developer.
When you are arranging your mortgage, your lender may need to see a building warranty before completing the paperwork and arranging the finance to fund your home purchase.
It is a good idea to begin talking to lenders early too, while you are negotiating with developers, to make sure your mortgage provider is happy with the level of coverage for your property before making any commitments.
New build homes can be fantastic investments and are perfect for first-time buyers. They are also perfect for families, as the plans can often be altered or changed to accommodate your family’s needs. Any house purchase comes with some risks, so make sure you get the right kind of warranty and insurance for your home.