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The NHBC - The National House Building Council

The NHBC is the leading new home warranty and insurance provider. Established over 74 years ago as a non-profit organisation. Its primary purpose is to raise standards in the new home building industry and provide consumer protection for new home buyers.

There are differences between a guarantee and a warranty, but both words are often used with regard to a new home warranty.

The AskOxford website defines them as:

Warranty: 1) a written guarantee promising to repair or replace an article if necessary within a specific period. 2) an engagement by an insured party that certain statements are true or certain conditions shall be fulfilled.

Guarantee: 1) a formal assurance that certain conditions will be fulfilled, especially that a product will be of a specified quality. 2) something that makes an outcome certain.

A new home building warranty, is in essence an insurance policy paid for by the builder, to provide cover against any latent defects that may occur in the new home. The fee also includes the cost of inspections during specific stages of the construction of the home.

The NHBC Buildmark warranty offers three-part protection:*

Before the house is completed

(Claims paid by NHBC in the year 2009/10 - £1 million)

You are covered against the builder becoming insolvent. The policy will reimburse home buyers for loss of deposit after exchange of contracts or other financial loss which cannot be recovered such as valuation fees. The policy will also pay for the property to be finished to NHBC standards.

During the first two years

(Claims paid by NHBC in the year 2009/10 - £26 million)

This cover requires the builder to remedy at his own expense, any defects or faults which arise as a result of his not adhering to the NHBC standards for materials and/or workmanship. However, it is usually found that most house builders will undertake to rectify all defects, with certain exceptions such as shrinkage cracking, during the initial two year period, even though they may not be a result of NHBC standards not being followed. However once the two year period has expired, it is very rare for a house builder to attend to defects that were not reported within the two year period.

Years three to ten

(Claims paid by NHBC in the year 2009/10 - £45 million)

Insurance cover against major damage arising from structural defects or drainage defects resulting from a failure to comply with the NHBC technical standards. The Buildmark cover protects you against subsidence, settlement and heave (unless they are covered by your Buildings insurance) along with other structural defects causing damage. This cover is up to the maximum stated in the policy documents and applies to the cost of rectifying physical damage caused by defects in specific building elements such as foundations and load bearing walls.

With effect from 1st September 2010, all correspondence to the NHBC should be addressed to:

NHBC, NHBC House, Davy Avenue, Knowlhill, Milton Keynes
Buckinghamshire. MK5 8FP

Contact via telephone remains unchanged, through the switchboard number: 0844 633 1000.

The NHBC has over 17,490 registered builders, who undertake to adhere to strict NHBC technical standards. Around 80% of all new homes are registered with the NHBC for Buildmark warranty. Last year of the 5195 complaints received, the NHBC found 68% in favour of the homeowner.*

The NHBC helps raise standards by-

registering builders who agree to comply with NHBC Rules and Standards.
setting and maintaining construction standards for new homes
inspecting at key stages of construction
providing “Buildmark” warranty and insurance cover.
offering Building Control services in England and Wales.
providing a range of services, including technical information, training, health, & safety

engineering and energy rating services for new homes and housing related sectors.

The 350 inspectors employed by the NHBC, made over a million individual inspections of new homes last year. These are made at critical stages of construction before the next stage is started. The inspection stages are:

Foundations: once excavated (before concrete)
Drainage :- if NHBC is also carrying out Building Control services
Superstructure :- :the brickwork, blockwork, floors and roof
First fix :- before plastering or drylining
Pre-handover : - final (CML) inspection

(* source NHBC website.)

For more about the NHBC and the work it does setting building standards click

LABC Warranty

Launched in 2007, LABC Warranty works in partnership with Local Authority Building Control (LABC) to provide housebuilders with a complete range of developer services to support construction from start to finish: from residential and non-residential warranties, right through to assessments and compliance testing.

LABC say “by providing these services under one roof allow we can pass on significant cost savings to house builders.” Working alongside LA Building Control Surveyors, they additionally review developments in accordance with their technical standards.

They provide type pre-approval, acceptable by any local authority in England and Wales. The warranty schemes are underwritten by AmTrust Europe Limited, authorised and regulated by the Financial Services Authority.

For more on the warranty visit www.labcwarranty.co.uk

Awards for Excellence

“LABC Warranty's Awards for Excellence have been designed to recognise and reward the hard work of registered developers, builders and site managers who stand out from the crowd in delivering high quality construction and design.”

All new homebuyers need to ask the question: