Raising standards to protect homeowners
Protecting homeowners
- I have just paid a deposit for a new build home. What would happen if the builder goes out of business before I move in?
- I am having a home built for me. What would happen if the builder goes out of business before completing it?
- I have been in my new home for 18 months and notified my builder of some faults with the home. Who will fix them if they go out of business?
- Who do I contact to report problems with my new home if the builder becomes insolvent?
- I'm having problems regarding discussions with my builder over my new home. What should I do?
- My builder has asked for a further deposit to complete my home. Should I pay it?
- NHBC has agreed to meet my claim and pay for repairs on my eight-year old home. Does this change if my builder goes out of business?
- Is NHBC in a financially strong position?
See also, Questions and Answers about sustainability and new homes.
1. I have just paid a deposit for a new build home. What would happen if the builder goes out of business before I move in?
If your builder becomes insolvent then we can repay the amount you have already paid to them under contract and which you cannot recover, up to a limit of 10% of the original purchase price or £100,000, whichever is less. Or if the property has been started, we may instead pay the additional cost up to this limit to complete the home in accordance with NHBC requirements.
2. I am having a home built for me. What would happen if the builder goes out of business before completing it?
Up to the limit as mentioned in question one above, we will pay the additional cost to complete the home in accordance with NHBC requirements.
3. I have been in my new home for 18 months and notified my builder of some faults with the home. Who will fix them if they go out of business?
Under Buildmark, the builder is responsible to put right any items reported in the first two years that do not comply with NHBC requirements. If the builder becomes insolvent, NHBC will meet the cost of any work the builder is liable for under this part of the cover.
4. Who do I contact to report problems with my new home if the builder becomes insolvent?
You should call NHBC on 0844 633 1000 and say 'Home Enquiry' in the first instance. We will be able to respond more quickly if you are able to quote the policy number.
5. I am having problems regarding discussions with my builder over my new home. What should I do?
You should call NHBC on 0844 633 1000 and say 'Home Enquiry' in the first instance. We will be able to respond more quickly if you are able to quote the policy number.
6. My builder has asked for a further deposit to complete my home. Should I pay it?
We suggest you contact your solicitor in the first instance, as NHBC cannot enter into contractual queries between you and your builder.
7. NHBC has agreed to meet my claim and pay for repairs on my eight-year old home. Does this change if my builder goes out of business?
No, claims in years 3-10 of the cover are dealt with by NHBC and we will still meet your claim.
8. Is NHBC in a financially strong position?
NHBC is in a financially stable and robust position and will remain so. As an insurance company we are required to have extensive reserves and are authorised and regulated by the Financial Services Authority. NHBC is an independent, non-profit distributing company limited by guarantee, with no shareholders.