Buildings insurance - Insurance for new houses

If you buy a newly bought home, you may have trouble getting a mortgage unless it has a ten-year warranty such as the Buildmark Warranty from the National House Building Council (NHBC) or a warranty from Zurich Municipal. These sorts of warranties provide insurance cover against the builder going bust while the house is being built, most defects for the first two years after the house is built, and, until the house is ten years old, major structural faults (such as foundation failure, distortion or collapse of roof structures and chemical failure of materials that affect load-bearing structures). Warranties can be transferred into the names of the new owners if you sell before the warranty has expired. However, although this type of insurance does provide some useful cover, it will not cover all defects that may arise with a new house, and it is certainly not a substitute for buildings insurance.