If you are a future property owner that is overseeing their property being built, you might want to consider getting a home warranty. But what is home warranty and what does it cover anyway?
Before we delve into this, it is important to know that there is a difference between a home warranty in the UK and US. To make it short, a home warranty in the US is simply a renewable contract that will cover the repairing and replacing the cost of specific appliances and mechanical systems in your home. Conversely, home warranty in the UK is more of an insurance that covers the structural defects of a building.
So, now you have a clue about what a home warranty is in both countries. We will be focusing on the home warranty and its cover in the UK.
As a future homeowner that is building in the UK, how will a home warranty help you? Let’s find that out.
The UK Home Warranty
The home warranty cover in the UK will not focus more on the contents of your house as that of the US does. Instead, it will cover you as you prepare to build your house or commercial property.
Actually, a home warranty is also known as the ‘Structural Defects Insurance’ in the UK. Its main objective is to cover the property owner against the major defects in the construction and design of the building. This entails such faults like damp penetration or even issues that relate to the drainage.
Builders or future homeowners will take the home warranty (insurance) with the aim of covering the floors, windows, roof covering, roof surfaces, exterior wall face, as well as the external doors.
If you will be planning to construct a commercial building or a home in the UK, it is always beneficial to get a home warranty.
What Will The Home Warranty Covers?
Well, we have just stated the general things that a home warranty will cover as you construct.
Here is what you should expect from a home warranty cover;
- When you buy a home off plan
In some cases, a person might purchase a home before it is built. This is a common case with new builds. So if this happens, you will need to exchange the contracts with the previous owner. Once you are the official owner of the home, your new warranty will cover the deposit against the builder going bankrupt or broke.
Nonetheless, if the builder is broke and fails to commence and/or complete the construction of the building, the provider of the warranty will refund the deposit.
- When the property is successful built
Upon the successful construction of the property, the home warranty will now be divided into two periods. They include the following:
The Defects Insurance Period. This warranty period will cover your first two years when you start in the home/building. During these first two years, the builder will be expected to fix any of their faults in the construction of the house.
For example, if the windows weren’t sealed properly hence they are letting in the rain, or the pipes are faulty and hence disrupting the heating system in the house, the builder will be responsible.
Structural Insurance Period. This warranty period will cover from the third to the tenth year of living in the house/building. In this period, the builder will only take care of the major structural faults with the house.
For instance, they will be responsible for any foundational fault, or if there is an issue with the chimney, roof, the external render, or if the parts of the floors that carry too much load.
When you have stayed in the house for more than three years, you will be responsible for the small defects. For instance, you shouldn’t expect the builder to fix your gutter or the minor fittings in the house if you have been there for over three years.
What About Plumbing?
Honestly, it is not accurate to say that the warranty cover in the UK will cover the plumbing. Each provider will offer specific coverage. All in all, you should expect coverage for major faults like structural issues, drainage issues, or water penetration.
However, the home warranty will not cover the internal issues like heating, internal plumbing, or even creaky floorboards. You might have to pick a different insurance policy if you want coverage for the internal issues in the house.
So, What Is Not Covered?
Yes, you know that the internal issues will not be included in the home warranty. However, you should know that the home warranty does not cover some faults.
To make it clear, the natural wear and tear will not be covered by the new home warranty. Also, weather damage won’t be covered by the home warranty. Any problem that results from inadequate property maintenance will not be covered. So, if you don’t take care of your floor tile and they break or come off, that will be on you.
However, condensation and damp can be covered by the warranty. But this will only be the case if the damp and condensation have come as a result of the builder failing to comply with the building standards of the warranty provider. Any builder’s fault will be covered by the warranty.
What If You Move?
Normally, your warranty will be transferred to the new homeowner when you move out. If you had done any work on the home by yourself, it would not be covered by the warranty. It happens the same way you purchased the building. However, if you sell the house after staying there for more than 10 years, the warranty will now become invalid. In other words, the new buyer will not be covered by the warranty after ten years.
Generally, it is wise to understand the home warranties better before you decide to go for any.
Once you have made up your mind, ensure that you go for the best home warranty company that will not only offer good services but one that will conduct a clean business with you.
