Builder Warranties and Guarantees: What Protection Do You Have?

What warranties and guarantees should you expect from your builder, and what protection do they actually give you?

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