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New build home insurance

A new build is a home that hasn’t previously been lived in. They’ve usually been built in the last 2 years or so.

Most new builds come with a warranty, called the National House Building Council (NHBC) Buildmark guarantee. This covers you for any issues with the structure of your home that result from poor workmanship, and lasts for 10 years.

But it doesn't cover everything, and home insurance is still a good idea, even if you have the Buildmark guarantee.

If you’re ready, get a quote to find a great deal on your home insurance.

Or read on to learn more about insuring a new build, and for more reasons to get cover.

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Do I need home insurance if I have a new build?

It’s not a legal requirement, but most mortgage providers will insist you have home insurance in place, even on a new build.

Even if your provider doesn’t, it’s still a good idea to insure your new home. That could be with buildings insurance to cover its physical structure, or contents insurance to cover the personal possessions you keep inside.

And there’s good reason for this.

Most new builds come with an NHBC guarantee. This works a bit like a warranty and covers your home for around 10 years.

What is the NHBC Buildmark guarantee?

For the first 2 years, anything that goes wrong as a result of poor workmanship must be fixed by your builder. After those first 2 years, and up to year 10, the NHBC repairs any further structural issues your home faces as a result of a poor build. This includes issues with the:

  • Roof
  • Walls
  • Staircases
  • Floor
  • Windows

This is good news if you own a new build, but even with a Buildmark guarantee in place, you aren't protected against:

  • Flooding
  • Fire
  • Burglary damage
  • Storm damage
  • Subsidence and heave

Your contents aren't covered either.

This is where home insurance comes in useful. It allows you to claim for issues with your house that aren’t covered by the Buildmark guarantee.

What does home insurance cover?

Whether you’re insuring a new build home or any other type of property, there are 2 main types of home insurance: buildings insurance and contents insurance.

Buildings insurance covers the physical structure of your home, as well as fixtures like fitted kitchens, against damage caused by:

  • Fire
  • Break-ins
  • Flooding
  • Storms
  • Heave and subsidence
  • Falling trees

Explore buildings insurance

Contents insurance covers the cost of repairing or replacing the possessions you keep in your home if they’re damaged by fire or flooding, or if they’re stolen. It usually covers:

  • Electrical goods like TVs and computers
  • White goods and other appliances
  • Furniture, soft furnishings and carpets
  • Clothes, shoes and glasses
  • Valuables like jewellery, art and ornaments
  • Garden furniture, lawnmowers and tools

Explore contents insurance

How much is home insurance for a newer home?

Average annual cost of home insurance for newer homes*:

Combined home insurance

£130

Buildings insurance

£87

Contents insurance

£61

*Average cost of a house built since 2020. Confused.com data 01/01/2023 to 20/06/2023

It costs £130 to insure a home built after the year 2020, on average. This is cheaper than the average across houses of all ages, which sits at £218*.

There are a few reasons why insurance is cheaper for newer properties:

They tend to be less expensive to repair than older homes, as they’re built with modern building techniques and materials.

They’re newer so they’ve suffered from less wear and tear, and have fewer of the structural issues that can affect older homes.

They tend to be simpler in design, with fewer non-standard features you may find on older homes like thatched rooves or timber frames. These come with added risk, can be expensive to repair and are difficult to maintain.

They tend to be more secure, and are more likely to be fitted with locks meeting the British Standards Institution's latest standards.

*Confused.com data 01/01/2023 to 20/06/2023.

How can I get cheaper home insurance?

Even though home insurance is already relatively cheap for new build houses, there are ways to bring your costs down even further.

  • Buy a combined policy
  • Change your excess
  • Pay annually
  • Don’t over insure
  • Limit your policy add-ons

Buy a combined policy: If you need both home and contents insurance, getting a combined policy could be a quick way to save. According to our data, buildings insurance costs £87 on average for a new home, and contents insurance costs an average of £61. A combined policy costs an average of £130, which is 14% cheaper than buying 2 separate policies.

Change your excess: This is the amount you agree to pay towards the cost of a claim. Most of our customers choose to pay an excess of £250 - and with good reason. Those paying £250 saved an average of 11% on their home insurance, compared to those who chose to pay no excess*.

Pay annually: Paying for your cover in one lump sum is a quick way to save, as insurers charge more to split your insurance costs into monthly payments. Our data shows that those who paid annually saved an average of 6%* on their insurance, compared to those who paid monthly.

Don’t over insure yourself: Getting the right amount of cover is crucial. Too little and your insurance won’t pay out enough to replace what you’ve lost. Too much and you'll pay more than you need to. The average amount of contents cover our customers get is £51,646**, but this might not be the right amount for you. Use our contents calculator to find out exactly how much cover you need.

Limit your policy add-ons: Things like accidental damage cover can be a good idea if you want to make sure your insurance covers you for all eventualities. But add-ons come at a cost, and choosing extras that you don’t actually need can lead to unnecessarily high costs. Think about what policy extras you need before buying.

*Confused.com data 01/01/2023 to 20/06/2023.
**Confused.com data 25/03/2023 to 20/06/2023.

What policy add-ons could be useful for new build homes?

Policy add-ons cost a bit more but help ensure your policy covers exactly what you need it to.

There are several of them to choose from, but new build home owners might especially benefit from:

Legal expenses cover: This helps cover the cost of legal proceedings involving your home. This could be something like a boundary dispute, or a claim for poor work carried out by a tradesperson. As you’re less likely to have spare cash after moving into your new home, legal expenses cover could help ensure you’re not left out of pocket if you need to take a claim to court.

Accidental damage cover: Your home insurance covers things like flooding and storm damage, but it doesn't cover spilling red wine all over your new carpet. Accidental damage cover allows you to claim for mishaps that are't covered by your contents insurance.

Home emergency cover: This covers the cost of emergency repairs your home needs. Things like smashed windows, boiler failure and plumbing disasters should all be covered.

For a full list of home insurance policy add-ons, see our home insurance homepage.

How much do I need to insure my home for?

Average contents insurance amount taken out:

£51,646*

*Confused.com data 25/03/2023 to 20/06/2023

If you’re looking at buildings insurance

The amount of cover you need is based on the rebuild cost of your home. This is how much it would cost to rebuild your home from scratch. It’s usually less than the value of your home, as what you pay for a house depends on more than just how much it cost to build.

We can help you estimate your rebuild cost when you get a quote.

If you’re looking at contents insurance

You need enough cover to repair or replace all of your possessions. To do this, you’ll need to work out the total value of everything you own. You’ll also want to ensure you don’t get too much cover, otherwise you could be paying for insurance you don’t actually need.

The average amount of cover our customers get is £51,646*. But our useful contents insurance calculator can help you figure out exactly how much contents cover you need.

When should I get home insurance?

You should get cover as soon as the house becomes legally yours. This is at the exchanging of contracts. Buying cover at or before the exchange ensures you’re covered from the minute you own the home.

If you’re buying off plan (buying the home before it’s actually been built) you’ll need to ensure your new property has a post code assigned to it to buy insurance. This is the developer’s responsibility to register, so contact them if they haven't given it to you.

Explore other types of home insurance

What our home insurance expert says

"Even if your new home is covered by the Buildmark guarantee, home insurance is still a good idea. It helps you cover the cost of repairs for issues that aren't covered by the guarantee, like fire or storm damage. And if you add in contents insurance, your personal possessions are covered too."
Matthew Harwood, Home & lifestyle insurance expert at Confused.com
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