NHBC Buildmark: what the scheme covers, and what it is not

Reference entry · Reviewed by the Apex broking team · Last reviewed 2026-08-22

What Buildmark is

Buildmark is the structural warranty and insurance scheme operated by NHBC for new and newly converted homes built by registered builders. The homeowner is the beneficiary. It exists because a purchaser of a new home has, in practice, limited ability to pursue a builder for defects years after completion — the builder may have gone, the contractual route may be blocked, and the tort route is narrow. Buildmark replaces that uncertainty with a defined product.

Because it attaches to the home rather than to a person, it passes to subsequent owners within the ten-year period. Lenders commonly require a recognised warranty on a new build, which is why the scheme has become a practical condition of sale rather than an optional extra.

The three periods

Before legal completion. From exchange of contracts to completion, the cover protects the buyer against the builder becoming insolvent — broadly, loss of deposit, or the additional cost of completing the build. This section is provided by NHBC.

The first two years: the builder’s responsibility. From legal completion, the builder is the party responsible for putting right defects reported to it that breach NHBC’s technical requirements. NHBC’s role in this period is to guarantee the builder’s obligations — so if the builder does not do the work, or is no longer able to, the homeowner has a route through NHBC. The important distinction is that this is a warranty backed by a guarantee, not a first-party insurance claim.

Years three to ten: the insurance period. For the remaining eight years, NHBC insures the cost of repairing physical damage to the home caused by a defect in specified parts of the structure — the parts are defined in the policy document and the list is narrower than most homeowners assume. Cover in this period can also extend to reasonable costs of removing and storing possessions and of alternative accommodation where the home cannot be lived in while the work is done.

Two plus eight is the ten-year figure people quote. It is worth being precise about it: the ten years are not ten years of identical cover, and the change at the end of year two is a change in who is responsible as well as in what is covered.

What Buildmark does not do

The exclusions matter more than the headline. Buildmark does not cover general wear and tear, deterioration, or damage caused by the owner’s neglect or failure to maintain. It does not cover damage from insured perils that belong on a household policy — fire, smoke, storm and similar — and it does not duplicate cover available under another policy. It is a defects product, not a buildings insurance policy, and a homeowner still needs buildings insurance from completion.

It also does not respond simply because something is disappointing. In the insurance period the requirement is physical damage caused by a defect in a specified part. Cosmetic issues, items outside the specified parts, and defects that have not yet caused damage generally fall outside.

Why this matters to the professional team

This is where the confusion usually arises. A warranty scheme protects the homeowner. It does not insure the designer, the engineer, the architect or the contractor against a claim for professional negligence, and it does not remove their liability. Those exposures are answered by professional indemnity insurance and, for the works themselves, by construction all risks and contractors’ liability cover.

Nor does a warranty resolve the contractual position between the parties. In Robinson v PE Jones (Contractors) Ltd the Court of Appeal considered how far a builder owes a concurrent duty in tort alongside its contract with the purchaser, and how effectively the contract can limit that liability — the answer being that a carefully drafted contract can do a great deal. A warranty sits alongside those questions rather than answering them.

Warranty, limitation and the statutory route

The ten-year period is not a limitation period. A homeowner’s claims against the builder or the professional team are governed by the general law, and the position has moved. Section 1 of the Defective Premises Act 1972 imposes a duty on those taking on work for or in connection with the provision of a dwelling to see that the work is done in a workmanlike or professional manner with proper materials so that the dwelling is fit for habitation. The Building Safety Act 2022 substantially extended the limitation periods for claims under that section, both prospectively and retrospectively, which has changed the practical exposure of anyone who has worked on residential buildings. We deal with the consequences for professional indemnity in Defective Premises Act limitation and PI cover and the Building Safety Act and PI.

The upshot for a firm working on housing is that the presence of a Buildmark policy on a scheme tells you something about the homeowner’s remedies and almost nothing about your own exposure. Underwriters know this, which is why residential work is rated on the professional team’s contract terms and quality processes rather than on whether a warranty is in place.

Other warranty providers

NHBC is the longest-established provider and Buildmark is the best-known product, but it is not the only structural warranty in the market and the schemes are not identical. Cover periods, the definition of the insured parts, excesses and claims procedures differ between providers. If you are relying on a warranty — as a purchaser, a lender or a developer — read the policy document for the scheme actually in place rather than assuming it follows the pattern above.

Frequently asked questions

Is NHBC Buildmark an insurance policy or a warranty?

Both, in different periods. Before completion and during the insurance period from years three to ten it operates as insurance provided by NHBC. During the first two years after legal completion the builder is responsible for putting defects right and NHBC guarantees that obligation, which is a warranty backed by a guarantee rather than a first-party insurance claim.

Does Buildmark cover the architect or engineer?

No. Buildmark protects the homeowner in respect of the home. It does not insure members of the professional team against claims for negligent design or advice, and it does not reduce their liability. That exposure is answered by professional indemnity insurance.

How long does Buildmark last?

Ten years from legal completion, plus the pre-completion insolvency protection from exchange of contracts. The ten years divide into the two-year builder liability period and the eight-year insurance period covering years three to ten.

Does the cover pass to the next owner?

Yes. The cover attaches to the home for the remainder of the ten-year period, so a purchaser buying a three-year-old new build acquires the balance of the insurance period. Check the policy documents on purchase, because what remains is the years three to ten cover, not the builder liability period.

This page is general insurance information, not legal advice, and describes the position as at August 2026. Cover depends on the wording of the policy actually in force.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.