What is new build home insurance?

New build home insurance covers the structure of your freshly built property: walls, roof, windows, and permanent fixtures like your kitchen or bathroom suite. If something unexpected like a fire, flood or storm causes damage, your insurance could help cover the cost of repairs or even a full rebuild.

Yes, many new builds come with a builder’s warranty, sometimes offering up to ten years of protection against structural issues. It’s great to have, but it won’t cover everything. That’s where insurance steps in. It fills the gaps and protects you once the builders have handed over the keys and disappeared into the sunset. In short, it gives you more protection and peace of mind.

Most mortgage lenders will want you to have this type of cover in place from the moment you exchange contracts. But even if you’ve bought your home outright, it can still be a smart move – your new place is a big investment, and home insurance helps keep it safe.

Why do I need new build home insurance?

If you’ve got a mortgage on your new build, chances are your lender will require you to have buildings insurance. The good news? You don’t have to go with their preferred provider; you can shop around for a better deal.

Even without a mortgage, new build home insurance makes sense. Your builder’s warranty won’t cover everything, like accidental damage after handover or issues from storms. Having your own policy helps protect you from costly repairs or rebuilds that could come out of your pocket.

If you own a flat in a new development, the freeholder usually sorts the buildings insurance, and you’ll likely pay your share through service charges. But if you’re a freeholder yourself or part of a management group, it’s up to you to make sure the right cover is in place.

Here’s why new build home insurance can be a smart move:

  • Protects your investment: Covers repair or rebuild costs if unexpected damage happens.

  • Meets mortgage rules: Keeps lenders happy and your purchase on track.

  • Avoids surprise bills: Saves you from large repair costs that warranties might miss.

  • Peace of mind: Your new home is covered, no matter what comes up.

What does buildings insurance cover?

With buildings insurance, depending on the insurer and policy you’ll typically be covered for the key things that help protect the structure of your home and more, including:

  • Damage to your home’s structure: Covers things like walls, roof, windows, and permanent fixtures if they’re damaged by fire, flooding, theft or storms.

  • Subsidence and land movement: Includes cover for subsidence, heave of land and landslip, which can cause serious structural problems.

  • Outbuildings and outdoor features: Protection for contents in garages or sheds within your property boundary, plus features like swimming pools, patios, terraces, fountains or even hard courts.

  • Alternative accommodation: Pays for somewhere else to live if your home is temporarily uninhabitable due to damage covered by your policy. Landlords may also be covered for lost rent.

  • Matching set replacements: If part of a matching set (like tiles or fitted units) is damaged and a perfect match can’t be found, the policy could cover replacing the whole set.

  • Permanent fixtures and outdoor surfaces: Includes things like built-in wardrobes, kitchen worktops, driveways and patios – anything that's fixed in place as part of your home.

  • Replacement locks and keys: Covers the cost of replacing locks on external doors if your keys are lost or stolen, plus alarm systems and safes inside the home.

  • Legal liability protection: Offers cover if you’re legally responsible for injury to someone else or damage to their property as the homeowner.

Exactly what’s covered can vary between policies and lenders, so it’s a good idea to compare buildings insurance options to find the right fit for your home.

What isn’t covered?

No insurance can cover absolutely everything, so it’s important to check what’s excluded from your policy. Common things not covered, depending on your chosen insurer and policy, include:

  • General wear and tear or gradual deterioration.

  • Damage caused by wet rot, dry rot or frost.

  • Storm damage to fences, gates or hedges.

  • Problems resulting from poor workmanship or design faults (your new build warranty may cover you for these).

  • Any events or damage that happened before your policy started, or situations you knew about beforehand (like a flood warning for your area).

  • Loss, damage, or liability caused by deliberate or criminal actions by you or anyone living with you.

  • Damage caused by pets, such as chewing, scratching, tearing, or fouling.

Make sure you read the full policy details carefully to understand all the exclusions.

What insurance do I need for my new build?

Most new builds come with up to ten years of protection against structural issues – it’s a real bonus when buying new. But even with that in place, buildings insurance is still a must-have. If you’re getting a mortgage, your lender will probably insist on it before you even exchange contracts. You should also look at contents insurance to cover your furniture and other belongings.

You can buy buildings and contents insurance separately, or as a combined policy:

Buildings insurance

This covers the main structure of your home, plus permanent fixtures and fittings, so your fancy new kitchen and spotless bathroom are safe too. It also protects you against damage from storms, floods, fires and other unexpected disasters. Basically, it’s not just a nice-to-have, it’s a proper must-have for peace of mind.

Contents insurance

This isn’t compulsory but is definitely worth thinking about. You’ve spent a fortune decking out your new place with sofas, TVs and all the other essentials, so why not protect them? Contents insurance covers your stuff if it’s damaged, stolen or destroyed, so you’re covered if the worst happens.

Buildings and contents insurance

As a combined policy, this keeps things simple and can be a cheaper way to wrap up insurance for your new build home in one go.

Put simply, buildings insurance looks after your home itself, and contents insurance looks after everything inside it. Both together give you solid protection and let you relax knowing your new build is properly covered.

How much does new build insurance cost?

You might find that buildings insurance for a new build can be a little cheaper than for a comparable older home. That’s because new builds typically come with security features that make things like break-ins less likely. Plus, everything’s brand new. Plumbing, roof fittings, electrical work… it means there’s less chance of things going wrong and you having to claim. All this means your buildings insurance could cost you less than you’d expect.

Here are some of the key influences on the cost of your new build home insurance:

  • Where you live: Areas with higher crime rates or more risk of flooding may push prices up.

  • How your home’s built: If your home’s made with unusual or hard-to-replace materials, that could bump up the cost, as repairs may be trickier or more expensive.

  • Rebuild cost: Insurers base your premium on how much it would cost to rebuild your home from scratch.

  • Security features: Having burglar alarms, secure locks or CCTV might help you save a bit.

  • Optional extras: Adding things like accidental damage cover can bump up the cost, but could be worth it for the peace of mind.

  • Your excess: Picking a higher voluntary excess – that’s the amount you agree to pay yourself if you make a claim, on top of any fixed excess – can help bring down the cost of your premium.

Did you know that your policy quote isn’t just based on you and your home? There are some other factors that can affect the cost of everybody’s home insurance:

  • Wild weather: Flooding is on the rise in the UK, and more frequent storms mean more claims, which can push up premiums.

  • Higher repair costs: Labour, materials, and energy prices have all gone up, so fixing homes now costs more – and insurance prices are catching up.

  • More water damage claims: Things like frozen pipes bursting in winter are surprisingly common, and they’re costly, which affects everyone’s premiums.

  • Rising number of claims: The more people claim for things like theft or damage, the more insurers have to pay out, and that cost gets reflected in your policy price.

Remember, it’s always worth shopping around when your renewal comes up. Even small differences in cover or excess can make a big difference to the premium.

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Answering your questions about new build home insurance

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Page updated on 11th September 2025, Reviewed by Richard Groom