When you're spending tens of thousands of pounds on building work, you want to know what happens if things go wrong after the builder leaves. Here's a guide to the different types of protection available.
Types of Guarantee
Builder's Own Guarantee
Most reputable builders offer their own workmanship guarantee, typically covering defects for 1-2 years. However, this is only as good as the builder's continued existence - if they go out of business, the guarantee is worthless.
Insurance-Backed Guarantees (IBGs)
These are underwritten by an insurance company, so they remain valid even if the builder ceases trading. Schemes include:
- FMB MasterBond - free with Federation of Master Builders members
- QANW Insurance-Backed Guarantee
- HomePro Insurance
- Deposit Protection schemes - protect your deposit if the builder goes bust before starting
Structural Warranties (for new builds and conversions)
For new-build homes, structural warranties provide 10-year cover:
- NHBC Buildmark - the most common, covers defects for 2 years and structural issues for 10 years
- LABC Warranty - backed by local authority building control
- Premier Guarantee
- Protek
Most mortgage lenders require a structural warranty on new-build properties.
What's Typically Covered?
- Defective workmanship - poor quality finishing, incorrect installation
- Defective materials - faulty products used in construction
- Structural defects - foundation movement, structural failure (longer-term cover)
What's NOT Covered?
- Fair wear and tear
- Damage you cause after completion
- Work outside the original specification
- Cosmetic issues (unless they indicate an underlying defect)
- Consequential losses (e.g. hotel costs while repairs are done)
Your Legal Rights
Regardless of guarantees, you have legal protections:
- Consumer Rights Act 2015 - services must be performed with reasonable care and skill, within a reasonable time, and at a reasonable price (if not agreed)
- Limitation Act 1980 - you can bring a claim up to 6 years after breach of contract (or 6 years from when you discovered the defect in some cases)
- Supply of Goods and Services Act 1982 - materials supplied must be of satisfactory quality
Practical Advice
- Always ask your builder what guarantee they offer before signing a contract
- Prefer insurance-backed guarantees over builder's own guarantees
- For new builds, ensure a structural warranty is in place before work starts
- Keep all guarantee documents with your property deeds - they transfer to future owners
- Report defects promptly and in writing