NHBC Cover Explained: Your Essential Guide for Leaseholders (2025)

NHBC Buildmark Cover holds 80-90% market share in the new home warranty market. Understanding your property’s NHBC coverage is vital. A staggering 95% of home buyers sign contracts without reviewing their warranty provisions.

NHBC warranty offers protection for up to 10 years, yet many leaseholders don’t fully grasp their coverage details. The first two years safeguard your property against defects and structural problems. Structural protection continues through the remaining period. This piece will help you learn about your NHBC Buildmark coverage and direct you through the claims process.

Understanding NHBC Buildmark Cover Basics

The National House-Building Council (NHBC) has led the UK’s new home warranties and insurance market since 1936. Their flagship product, Buildmark warranty, now protects approximately 1.4 million homes. throughout the country

What is NHBC warranty?

The NHBC Buildmark warranty gives detailed protection to newly built or converted homes. This warranty has become the top choice in the UK and protects 70-80% of new build properties. The policy shields homes from specific problems that arise from builder insolvency or failure to meet NHBC requirements.

Key parties involved

Three main stakeholders make up the NHBC warranty system. The NHBC establishes technical requirements for design, materials, and workmanship. Registered builders must follow these standards to provide warranty coverage. Homeowners get protection through the policy, which they can transfer fully during its lifespan.

Duration of coverage

The Buildmark policy protects homeowners in different phases:

• Pre-completion deposit protection if the builder becomes insolvent
• Two-year builder warranty period with NHBC guarantee
• Eight-year insurance coverage against structural defects

The policy moves automatically to new owners if they sell the property during the coverage period. Leaseholders find great value in this warranty because all new-build mortgage lenders accept NHBC Buildmark. The policy stands out from other insurance plans because it doesn’t charge an excess for accepted claims.

Coverage Periods and Protection Levels

The NHBC Buildmark policy protects your property in different stages, and each stage has its own coverage levels.

First 2 years: Builder warranty

During the first two years, your builder takes responsibility to fix any defects or damage that happens because they didn’t meet NHBC standards. Your builder needs to fix these problems quickly and pay for all repairs. NHBC will step in and make sure repairs get done if your builder goes bankrupt or doesn’t fulfil their duties.

Years 3-10: Structural protection

NHBC provides  for structural defects once your builder’s warranty ends eight years of insurance coverage. This protection covers specific parts of your home:

• Foundations and load-bearing walls
• External render and vertical tile hanging
• Load-bearing roof components
• Ceilings and floor structures
• Staircases and internal floor decking
• Essential retaining walls

Your financial protection grows each year. It follows the Royal Institution of Chartered Surveyors’ House Re-building Cost Index or increases by 10% compound yearly, whichever is lower.

Common exclusions to know

Some things aren’t covered by NHBC. We excluded damage from storms, accidents, or negligence. The policy doesn’t cover normal wear and tear, maintenance issues, or cosmetic defects you don’t report within seven days after completion. Items like decoration, kitchen units, fitted furniture, and appliances aren’t protected. You won’t get coverage for any changes or additions you make after NHBC’s final inspection.

Making a Successful NHBC Claim

The right timing of your NHBC claim can substantially affect its success. Your housing association or landlord should be your first contact point for shared ownership properties since the policy stays in their name. They need to give NHBC permission to discuss the policy with you.

When to submit your claim

You should contact your builder directly about any problems in the first two years. The managing agent usually handles claims for shared areas like communal staircases. You can report claims directly to NHBC at 0800 035 6422 once the builder warranty period ends.

Required documentation

These items will help process your claim quickly:

• Your Buildmark or NHBC policy number
• Property address with postcode
• Builder’s name and contact details
• Photographic evidence of the issues
• Written description of concerns

Landlords need to raise issues with NHBC for rental properties because NHBC only deals with policyholders. Clear communication between all parties is a vital part of this process.

Following up effectively

NHBC wants to  acknowledge your claim within 10 working days. They might need to arrange an inspection. Complex issues could take up to 20 working days to resolve.

You can try alternative dispute resolution methods if you don’t agree with NHBC’s resolution report. The Independent Dispute Resolution Scheme provides one option. The Financial Ombudsman Service can review your case at no cost if regulated insurance cover complaints remain unresolved after 8 weeks .

Note that builders must fix justified defects reported during the warranty period, even after it expires. Keep detailed records of all communications and take photos throughout the process.

Common NHBC Claim Challenges

Leaseholders face multiple challenges with NHBC claims. A good understanding of these obstacles helps create a smoother claims process.

Inspector requirement issues

NHBC inspectors receive criticism because they mostly do visual inspections from ground level instead of detailed roof examinations or drone surveys. These technical experts might not meet homeowners’ expectations with their assessment methods. This becomes a real problem with complex structural issues that need a full investigation.

Delayed responses

The NHBC wants to solve claims within 20 working days. Complex cases need more time. This extended timeline frustrates many homeowners, and some disputes drag on for months or years. Claims that need the Consumer Affairs team can take up to 8 weeks to get a final written response.

Appeal options

Homeowners who disagree with NHBC’s decision can take several paths:

• The Financial Ombudsman Service (FOS) – available to complain about regulated insurance cover
• Alternative dispute resolution processes, including arbitration
• Legal action through courts – claims under £10,000 usually go to Small Claims Court

NHBC cannot award damages or resolve disputes in a legally binding way. They don’t cover loss of enjoyment, reduction in value, or financial loss. Legal action might be needed for claims over £10,000. Unsuccessful claimants should remember they might have to pay their opponent’s legal costs.

Conclusion

Your NHBC Buildmark coverage will protect your property investment. This warranty protects 1.4 million homes in the UK, yet many leaseholders don’t know their rights and responsibilities under the policy.

The protection system works in two tiers and provides detailed coverage. Your builder’s warranty covers the first two years, and structural protection follows for eight more years to shield your home from major defects. Learning about claim procedures and required documents will help you handle problems smoothly.

NHBC claims can be tough with limited inspections and slow responses, but disputed cases have several appeal options. The Financial Ombudsman Service can help as a last resort when regulated insurance cover disputes remain unsolved.

Successful claims need proper documentation and quick reporting. Document everything – keep records of builder communications, NHBC representative discussions, and take photos of problems. This approach will substantially improve your chances of getting satisfactory results during your warranty period.