Buildmark Choice provides cover to landlords of developments of homes provided for rental or shared ownership. If the development as a whole is sold the remaining term of Buildmark Choice cover can be transferred to the new owner (although note that the limits of the policy may already have been partly or fully used up by claims from the first or subsequent owners). Similarly, if an individual home within a scheme is sold the subsequent owner can also benefit from cover provided by NHBC, although in both cases it would be necessary to contact us to discuss further.
Once you are registered with NHBC (see Become NHBC registered), you will need to register each new development for Buildmark Choice.
The cost is dependent on your premium rating, the net development cost and the contract price of the development. We will also require plot floor areas to be provided. These, alongside the net development cost of the development, will be used to apportion the financial limit of each plot.
The level of optional cover chosen will also affect the cost.
Registered builders can request a free Buildmark Choice cover guide price at any time.
Buildmark Choice provides cover for landlords of newly built or newly converted homes which are rented out. It includes:
a two year contractor repair warranty backed by the NHBC resolution service and guarantee
then eight years NHBC insurance cover for physical damage to certain parts of the home caused by a failure to build to the NHBC Technical Requirements
cover for pre-existing contamination of the land on which the home is built.
Optional extras to enhance this cover include:
pre-completion contractor insolvency
professional fees incurred in connection with a valid claim
a further 2 years insurance cover, giving a total 12 years' cover.
There are some things that are not NHBC’s responsibility, such as, but not limited to:
wear and tear, neglect and failure to undertake appropriate maintenance
storms and other severe weather conditions
fire and smoke
damp, condensation and shrinkage which is not a result of the registered builder failing to meet the NHBC Technical Requirements
reduction in the value of the home or land
There are also certain restrictions on the cover:
For homes registered with us for cover from 1 October 2019, we will only pay for claims that exceed the Minimum Claim Value. This means that if the cost of a valid claim exceeds this amount, we will meet the claim in full. For homes registered with us before this date, a policy excess applies, meaning a policyholder will need to make a contribution to the cost any valid claim (at the applicable excess)
there are financial limits to how much we will pay. These will be shown on the policy schedule.
NHBC is unable to register plots if the Beneficiary of Cover and either the developer or builder are related companies or parties. If this applies please contact NHBC Customer Services for guidance.
As the contractor, you are responsible to rectify certain damage caused by your failure to build to the NHBC Technical Requirements (contained within the NHBC Standards) which is first reported within your liability period (usually for the first 2 years following completion). You must do this within a reasonable time and at your own expense.
For full details of the contractor warranty responsibilities in the first two years of Buildmark Choice cover, please see the latest Buildmark Choice policy document.
Buildmark Choice is specially designed to protect landlords of newly built or converted homes which are developed to be rented out in the private, affordable or social housing sectors.
NHBC is unable to register plots if the Beneficiary of Cover and either the developer or builder are related companies or parties. If this applies please contact NHBC Customer Services for guidance.
Buildmark Choice can give protection from before the home is built if, due to your insolvency or fraud, you are unable to start or finish construction. To obtain this cover, your client will need to select the optional pre-completion cover.
Buildmark Choice cover then continues for 10 or 12 years after the date on the Buildmark Choice insurance certificate. This is the date NHBC issue a cover note following a successful pre-handover inspection.