The Insurance Distribution Directive (IDD) came into effect on 1 October 2018 – legislation concerning the sale and distribution of all types of insurance products. Part of this new regulation is designed to ensure that consumers of any insurance product are provided with a standardised Insurance Product Information Document (IPID) making the consumer aware of the features, advantages, benefits and any key exclusions of a policy in good time, before entering into an insurance contract.
NHBC has an obligation to ensure that new home buyers receive details of their warranty and insurance policy before exchange of contracts. This is because NHBC’s Buildmark includes deposit protection insurance available from the date of exchange until the date of legal completion.
As a conveyancer, you are at the forefront of ensuring the purchase of a new build home is processed accurately and in a timely manner.
In order for the system to work effectively, you should log into the Conveyancing Portal as soon as you receive contract papers in order to check that the builder and development is registered with NHBC and that warranty and insurance cover is available. This will also give the opportunity to check that the new home buyer’s details, along with important dates, are correct.
By using the Conveyancing Portal and entering or confirming buyer’s personal details before exchange of contracts, we can provide you with all the policy documentation including details of any endorsements applicable to your client.
Openness and clear communication between builders, conveyancers, homebuyers and NHBC is vital, and a key aspect of IDD in ensuring that our mutual customers are fully informed of their Buildmark policy which comes with the purchase of a new build home.
For more information about the Conveyancing Portal visit: www.nhbc.co.uk/conveyancingportal
We are keen to lead the way in treating consumers fairly and will make every effort to know our customers. In doing so, we can raise their awareness of the product terms and conditions, enabling them to contact us if they need to.
We are sure you will support us in working to the benefit of our mutual customers. If you need more detailed information regarding the Insurance Distribution Directive, please visit www.eiopa.europa.eu or www.fca.org.uk.
NHBC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. NHBC is registered in England and Wales under company number 00320784. NHBC’s registered address is NHBC House, Davy Avenue, Knowlhill, Milton Keynes, Bucks, MK5 8FP.