Housing Associations

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Questions and answers

Why do Registered Social Landlords value Buildmark Choice?

Why choose Buildmark Choice as your affordable housing warranty?

What is covered by Buildmark Choice?

How much does it cost?

Who can apply?

Is there any guidance for tenants on looking after their new home?

Why do Registered Social Landlords value Buildmark Choice?

Buildmark Choice warranty and insurance cover for newly built or converted social housing protects Registered Social Landlords (RSLs) and other providers of social housing against the risk of, for example,

  • contractor insolvency
  • building failures
  • loss of rent.

Buildmark Choice also provides assurance to private lenders, insurers and regulators of RSLs in the following ways:-

  • the cover is suitable for rental and shared ownership, general and special needs housing, multiple occupancy projects, foyer schemes, student and NHS Trust accommodation and mixed-use sites.
  • it covers new build, conversion and rehabilitation schemes, and can include non-residential uses within mixed use projects, e.g. shops, surgeries and workshop units.
  • the core cover is complemented by a range of additional insurance options and professional services to meet the specific needs of RSLs.

Why choose Buildmark Choice as your affordable housing warranty?

Buildmark Choice offers you much more extensive cover than its competitors and this is why it is selected to cover over 80% of all UK's new build social housing developments.

NHBC also provides an independent Resolution service which aims to resolve any disputes between you and the RSL. Under the Resolution service, NHBC can also help arrange the remedial work needed to put things right if you fail to do so. Should a problem arise, NHBC's promises an efficient claims handling service.


And because NHBC is more than an insurance company, you have the support of our technical knowledge gained from over 70 years' experience in the industry.


Our key stage inspection service is designed to fit in with your production schedule, and all NHBC Registered builders receive a free copy of the NHBC Standards and CD-ROM which are valuable sources of reference. If you cannot find the answer to your construction query, our trained inspectors are there to give you help and advice on site, while our technical advice line is available for complex issues.


If you are involved in conversion and renovation work and you need advice, our skilled teams have specialist knowledge of these types of project. We have qualified professionals across the country, who can offer practical advice on problems which can arise on these complex and sometimes unpredictable sites.

What is covered by Buildmark Choice?

For homes registered with NHBC from 1 April 2007, Buildmark Choice cover is divided into the following  main parts:

  • whilst the home is being built, optional Contractor's Insolvency Cover
  • the first 2 years after the property is completed, Contractor's Repair Cover
  • years 3-10, Home Damage Cover
  • contaminated land cover as standard
  • additional cover in years 3 to 10 where NHBC's subsidiary carried out the building control
  • choice of additional optional cover:
    • extend the policy by 2 years
    • include professional fees 

Whilst the home is being built optional Contractor's Insolvency Cover
Contractor's Insolvency Cover before the development is completed (limited to 10% of the Contract Price).

The first 2 years after the property is completed - Contractor's Repair Cover
There is no excess or minimum claim value during the first 2 years.
The Contractor's Repair Cover lasts for two years from the date of the insurance certificate. During this period the contractor is obliged to put right Defects and Damage which result from a failure to comply with NHBC Technical Standards. If the contractor fails to comply with his obligations, NHBC will itself arrange to put right those Defects and Damage.
During this two-year period NHBC also offers an independent Resolution Service to help settle disputes about Defects or Damage between the Contractor and the Registered Social Landlord. This is a free service and following its investigation NHBC will issue a report informing both parties of any work that the Contractor must carry out to fulfil his obligations under this part of the cover.


Years 3-10 Home damage cover
The Home Damage Cover normally lasts for 8 years after the Contractor's Repair Cover (but can be extended to 10 years depending on the options taken). Home Damage Cover includes a standard excess of £650 indexed, but also gives Registered Social Landlords the option to have larger excesses. It provides indemnity against Damage resulting from a breach of NHBC Technical Standards in the following parts of a home:

  • Foundations
  • Load-bearing walls
  • Non load-bearing partition walls
  • Wet-applied wall plaster
  • External render and vertical tile hanging
  • Load-bearing parts of the roof
  • Roof coverings
  • Ceilings
  • Load-bearing parts of the floors
  • Screeds, staircases, and internal floor decking where these fail to support normal loads
  • Retaining walls necessary for the structural stability of the home or other building on the Development
  • Double- or triple-glazing panes to external windows and doors
  • Below ground drainage (for both new and existing drainage)
  • Defective chimneys and flues causing a danger to the health and safety of occupants

Plus increased protection with the addition of alternative accommodation and loss of rent cover


Contaminated land cover
Cover against the cost of cleaning up contamination of the land on which the home is built, if a local authority or the environment agency takes action under environmental law.


Additional cover in years 3 to 10 where NHBC's subsidiary  carried out the building control
If you choose NHBC Building Control Services Limited to undertake building control, your customers will have additional insurance cover for breaches of specified Building Regulations which cause a danger to the physical health and safety of the occupants of the home. Relates to the following specified Building Regulations

  • Structure
  • Fire safety
  • Site preparation and resistance to moisture
  • Hygiene
  • Drainage and waste disposal
  • Heat-producing appliances
  • Protection from  falling, collision and impact
  • Glazing ¿ safety in relation to impact, opening and cleaning

Options
Choice of additional optional cover. You can choose to combine the cover described above with a combination of the following additional options:

  1. Contractor's insolvency before the development is completed (limited to 10% of the Contract Price).
  2. Professional Fees.
  3. Additional 2 years' cover.

How much does it cost?

Cost - New build
Once you are registered with NHBC, you will need to register each development for Buildmark Choice. The cost is dependent on your NHBC premium rating, contract price and the build price of each development and also on the chosen level of optional cover and excess.


Cost - Conversions and renovations
There is an initial non-refundable investigation fee so that the viability of the scheme can be determined. NHBC will visit the site to assess the condition of the existing building and feasibility of the proposed works. However, if accepted, the investigation fee will be credited against the home registration fee.
Fees are also determined by the premium rating of the builder/developer and are dependent on the contract price and the build price of each development.

Get a free warranty estimate here
http://www.nhbc.co.uk/Builders/Warrantiesandinspections/estimator/

Who can apply?

Buildmark Choice is available to all builders and developers registered with NHBC who wish to build, convert or renovate affordable housing..
If you are converting or renovating properties each project is subject to NHBC acceptance.
Registered builders and RSLs can apply direct for a quotation by contacting NHBC Customer Services.

Please dial 0844 633 1000 and say 'Customer Services' (Monday to Friday 08.30 - 17.30), or email us.

Is there any guidance for tenants on looking after their new home?

NHBC has produced a guidance booklet for tenants of RSLs which  provides useful information on how the home is built and general guidance on its care and protection.

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