What Does an NHBC Warranty Cover? Buildmark Phases and Limits

An NHBC Buildmark warranty covers a new-build home in three phases: deposit and insolvency protection before you complete, two years during which the builder must fix anything built below NHBC’s technical standards, and then eight years of NHBC insurance against physical damage caused by defects in specific structural parts of the home. Each phase has its own rules about who you contact, what qualifies, and how much you can claim.

Before Completion: Deposit and Insolvency Protection

If the builder becomes insolvent between exchange of contracts and completion, NHBC will either refund your deposit or pay the reasonable extra cost of finishing the home above the original contract price. This protection is for the first owner only, and it is capped at 10% of the original purchase price up to a maximum of £100,000.¹

Alternative accommodation and storage costs are also covered if the builder goes under before the home is ready.¹ To qualify, you must have genuinely intended to live in the property or rent it out, rather than buying it as a short-term investment.²

Years 1–2: The Builder’s Responsibility

During the first two years after legal completion, the builder is directly responsible for putting right any defect caused by a failure to meet NHBC’s technical requirements, along with any damage that defect causes.³ This is the widest phase of cover. Cosmetic, functional, and structural problems are all included, and there is no monetary cap on repairs.⁴ The minimum claim value that applies later does not apply here.⁵

One deadline matters at handover. Cosmetic damage, such as scratched windows or damaged fixtures, must be reported to the builder within seven days of completion, or it falls outside the warranty.⁶ Walk the home carefully on day one.

Years 3–10: NHBC Structural Insurance

Once the two-year builder period ends, the builder is out of the picture. NHBC itself becomes the insurer, but what counts as a valid claim narrows sharply. The policy now only covers physical damage caused by defects in specific structural parts of the home that were not built to NHBC’s requirements.⁷

The parts that qualify during this phase are:

Foundations, including concrete foundations, piles, ground beams, and raft foundations.
Load-bearing internal and external walls and floors that form part of the structure (floor coverings like tiles or laminate are not included).
The roof structure, and the roof covering only where a defect is causing water to get into the home.
External cladding, curtain walling, external render, and vertical tile hanging.
Chimneys, flues, balconies, retaining walls, internal staircases, floor decking, screeds, and the main access steps.
Double or triple-glazed panes in outside windows and doors.
The underground drainage system serving the home, provided you are legally responsible for it and the builder installed it.⁸

Contaminated land remediation is also covered if a statutory notice has been or could be issued requiring it.⁹ If repair work makes the home uninhabitable, NHBC will pay for alternative accommodation, removal and storage of possessions, and lost rental income if the property is let out. These additional costs are capped at 10% of the available financial limit.¹⁰

What Buildmark Does Not Cover

The years 3–10 insurance is not a general guarantee that everything in a new home will work properly. The exclusion list is long, and most homeowner frustration starts here.

Cosmetic issues: changes in colour, texture, or staining of finishes, and cracking or spalling that does not weaken the structure or compromise weather-tightness.⁸
Wear and tear, gradual deterioration, neglect, or failure to carry out routine maintenance such as clearing gutters.
Appliances and fittings: boilers, heating systems, kitchen and bathroom fittings, white goods, and sanitaryware, which fall under their manufacturers’ own warranties.
Landscaping and non-structural external features such as fences, paths, and gardens.
Storm, flood, fire, smoke, or water-table damage, which are matters for buildings insurance.
Any damage caused by modifications, extensions, or DIY work carried out after the NHBC final inspection.
Shrinkage cracks under about 2mm, treated as normal settlement.
Damage affecting only floor coverings such as tiles, laminate, wooden flooring, or their fixings.
Damage to roof tiles, slates, or flashings, unless water is actively entering the home as a result.¹⁰

Problems already covered by other insurance or warranty schemes are excluded, as are defects you knew about before buying and issues caused by lifestyle factors such as condensation from inadequate ventilation.¹¹

The Minimum Claim Value and Financial Limits

Even when a problem falls within cover, NHBC will only pay out during years 3–10 if the repair cost meets or exceeds the minimum claim value, or MCV, stated on your insurance certificate.¹² Below that figure, NHBC pays nothing and does no work.

For current policies, the MCV is £1,950 from April 2025 to March 2026 and £2,000 from April 2026 to March 2027.¹⁰ The figure rises by £50 each year. There is no excess once the threshold is cleared; NHBC covers the full cost up to the financial limit.¹³

A 2025 Financial Ombudsman decision shows how the MCV bites in practice. A homeowner’s claim for two damaged cladding panels was declined because the repair cost of £1,241 fell below the £1,900 MCV in force at the time.¹⁴

The overall maximum payouts are based on the original purchase price and apply across the full ten years:

New-build individual homes: up to £1,000,000.
Conversions: up to £500,000.
Continuous structures such as apartment blocks, new build: up to £25,000,000.
Continuous structures, conversions: up to £5,000,000.¹

The financial limit grows by 5% of the original limit on each anniversary of completion to account for rising construction costs.¹⁵ Earlier claims reduce the remaining limit, which matters if the property has changed hands.⁹

Defect vs Damage: The Distinction That Catches Owners Out

During years 3–10, Buildmark covers the cost of repairing damage caused by a structural defect. It does not necessarily cover the cost of correcting the underlying building fault if that fault has not yet produced significant damage. As one contributor to a widely cited consumer forum put it: “I had naively assumed that NHBC bore responsibility for putting right any faults listed in their years 2-10 cover. I think most people assume the same. Unfortunately, it is simply not the case.”

Water ingress shows how the line is drawn. If flashing was poorly installed and that causes internal damage, the claim is within cover. Roof tiles blown off in a storm are a matter for buildings insurance. NHBC distinguishes a systematic construction defect from an isolated weather or maintenance event.⁴ Blocked gutters that lead to damage can see a claim rejected on neglect grounds. In a 2025 Ombudsman case, NHBC was found to have missed that a property had been built with roof tiles unsuitable for the pitch, and was ordered to pay £750 in compensation and to fund an independent expert if further problems arose.¹⁶

If a claim is rejected, you can commission an independent chartered surveyor’s report to challenge the decision, and escalate unresolved complaints to the Financial Ombudsman Service, since NHBC is regulated by the Financial Conduct Authority.⁴

How to Make a Claim

In years 1–2, contact the builder first and report the defect as soon as possible, giving reasonable time and access for repairs. Go through the builder’s full internal complaints process. Once the builder has issued a final written response, or 30 days pass without any response, you can request NHBC’s resolution service.³ An NHBC claims investigator will visit and issue a report; if the builder still refuses to act, NHBC can arrange for the work at the builder’s cost.¹⁷

In years 3–10, claims go directly to NHBC. File online through NHBC’s claims portal or call 0800 035 6422, Monday to Friday, 9am to 5pm. Include your policy number from the Buildmark insurance certificate, a detailed description of the problem, and photographic evidence.¹² NHBC may send a surveyor and may need to open up parts of the property to investigate.

Flats, Shared Parts, and Selling the Home

For flats and maisonettes, the policy covers “shared parts,” meaning the structural elements and drainage systems residents share and must contribute to maintaining. During the builder warranty period, shared parts also extend to garages, retaining walls, boundary walls, external handrails, paths, drives, and paved areas.⁸ For shared parts, the builder warranty runs for three years from completion of the first home in the building, not the standard two.¹⁸

Shared-area claims are usually coordinated through the managing agent, and your payout is reduced to reflect your share of the cost.⁸ If your individual share falls below the MCV, NHBC may still cover the work provided the total cost across all affected homes exceeds ten times the MCV.¹⁰

Buildmark stays with the property. If the home is sold inside the ten-year period, the remaining cover transfers automatically to the next buyer.⁹ A new owner’s conveyancer should obtain the NHBC insurance certificate and policy booklet from the previous owner.¹⁹ One thing worth checking: earlier claims may have reduced the remaining financial limit, so confirm what cover is left with NHBC or your conveyancer before you rely on it.

A separate product, Buildmark Choice, is written for landlords and long leaseholders of rental, shared ownership, and social housing properties and offers optional extensions such as an extra two years of cover; the standard Buildmark described above is what individual homebuyers receive.²⁰

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