What is covered by Buildmark?
For homes registered with NHBC from 1 October 2005, Buildmark cover is divided into four main parts and is summarised below:
- Cover before the property is completed.
- The first 2 years after the property is completed.
- Cover in years 3 to 10.
- Additional cover in years 3 to 10 where NHBC's subsidiary carried out the building control.
Cover before the property is completed
If, due to insolvency, you do not start, or complete, the home, we will either reimburse your customer with the money they have paid to you and which they cannot recover, or we will pay for the property to be finished in accordance with our Standards.
There is a financial limit of £100,000 or 10% of the original purchase price (whichever is the less) to this part of the cover.
The first 2 years after the property is completed
For the first 2 years, Buildmark covers your customers against any physical damage to the home caused by a defect which results from your failure to meet NHBC Standards.
This part of the cover runs from the date of legal completion of the first sale of the home (date of entry in Scotland) or, if later, the date NHBC agrees the home substantially complies with NHBC's requirements.
Under this part of Buildmark, you are responsible for any repairs necessary. The homeowner should report any faults to you in writing. If you fail to rectify the problems, NHBC offers a free Resolution Service which aims to resolve disputes between you and the homeowner. Under the Resolution Service, NHBC can also help arrange the remedial work needed to put things right if you fail to do so. Subject to conditions, NHBC insures your obligations in this section.
Years 3 to 10
For the next eight years, we provide direct insurance cover for your customers, up to a maximum as indicated in the policy document, if it is more than £1000 (indexed at 1 October 2004) of putting right any physical damage to the home caused by a defect in the following parts of the building:
- foundations
- load-bearing walls
- non load-bearing partition walls
- wet-applied wall plaster
- external wall rendering and external vertical tile hanging
- load-bearing parts of the roof
- tile and slate coverings to pitched roofs
- ceilings
- load bearing parts of the floors
- screeds, staircases and internal floor decking, where these fail to support normal loads
- retaining walls necessary for the structural stability of the home, its garage or other permanent outbuilding
- multiple glazing panes to external windows and doors (in converted properties they must be newly installed at the time of conversion)
- below-ground drainage for which you are responsible
- defective chimneys and flues causing a danger to the health and safety of occupants
Additional cover in years 3 to 10 where NHBC's subsidiary carried out the building control
If you choose NHBC Building Control Services Limited to undertake building control, your customers will have additional insurance cover for breaches of specified Building Regulations which cause a danger to the physical health and safety of the occupants of the home.
In addition, they will also have cover against the cost of cleaning up contamination of the land on which the home is built, if a local authority or the environment agency take action under environmental law.
