The need for buildings insurance on a new build

mojito

I am wondering how good the new build guarantees actually are. We are buying our first house that is 6 years old and we presume has 4 years left on the original guarantee. The soliciter will let us know I'm sure but perhaps not in detail so I ask here. Why do we need to arrange buildings insurance for the sale to complete if the property is already under guarantee with the original builders.

Also most insurance policies declare themselves invalid if there is another policy. I have never got that one so if you insure your travel abroad two times then neither policy want to pay out due to the other policy. I digress.

DVardysShadow

mojito wrote: »

Why do we need to arrange buildings insurance for the sale to complete if the property is already under guarantee with the original builders ....

Because the guarantee does not protect you from fire or flood or damage by intruders etc etc

hcb42

Indeed, you are not understanding what insurance is, or what the NHBC guarantee is.

Home insurance does not cover wear and tear or general maintenance

camptownraces

mojito wrote: »

I am wondering how good the new build guarantees actually are. We are buying our first house that is 6 years old and we presume has 4 years left on the original guarantee. The soliciter will let us know I'm sure but perhaps not in detail so I ask here. Why do we need to arrange buildings insurance for the sale to complete if the property is already under guarantee with the original builders.

Also most insurance policies declare themselves invalid if there is another policy. I have never got that one so if you insure your travel abroad two times then neither policy want to pay out due to the other policy. I digress.

Even if the property is "under guarantee" - which may mean the NHBC scheme - I think you'll find it doesn't cover all the risks you would like covered. [check the fire, accidental damage and burglary cover for instance.]

Digressing: If you insure your travel abroad twice, then in the event of making a claim, you'll have to make two claims, and each company will cough up half the money. This is a lot better than not being covered at all. (see above).

G_M

1) if you are getting a mortgage your lender will insist you have building insurance as a condition of the loan
2) even if you are not getting a mortgage, it does not matter how well built the property is - if you knock over a chip pan you'll be homeless and £350,000 poorer.

Werdnal

I would agree with replies above. A building guarantee is exactly that - a guarantee against problems caused by faulty workmanship at the time of the build. I would suggest you read the guarantee docs you are given to verify what is covered.

Building insurance covers accidental damage, ie fire, flood etc.

Its like anything you buy that has a guarantee - if it becomes faulty because it was manufactured incorrectly or not fit for its purpose, the guarantee should cover it. If you break it accidentally or through mis-use, it doesn't.

You do not have to have buildings insurance, although most mortgage companies insist on it as they have a vested interest in the property they have loaned against. However, I would never be without buildings cover either on my own property or the one I let.

sonastin

NHBC guarantee covers things that were done (or not done) by the builder which come to light during the 10 years after it was built.

Buildings insurance covers things that have not yet happened or weren't caused by the way it was built.

The two policies won't cancel each other out as they cover different events.