Home insurance when buying a new build property: do you need it?

Buying a new build home is an exciting time and no doubt you’ll have plenty of things on your to-do list, but it’s important to get the right home insurance when you buy a new property.

Whether you’re a first-time buyer, moving to a new family home or just want to renew your home insurance policy, there is a lot to consider, and you’ll need to know which option is best for you to protect your home.

We’ve explained some of the requirements and insurance options you should consider making sure your home is safely covered for all events and you can move into your new property swiftly.

Do I legally need home insurance if I’m buying a new build home?

If you’ve bought a new build home with a mortgage, then you’ll need to have a home insurance policy in place.

Your lender will insist you have this from the point of exchanging your contact on your new build home.  

How do I buy home insurance for a new build home?

Finding an insurance policy for new your build home is just the same as buying insurance for a pre-existing property, so don’t worry about it being more complicated. You can get quotes online and you only need to supply a couple of details about your new home. 

Do keep in mind that if the development you are moving to is brand new, the insurer you want to go with may not recognise the postcode yet. If this is the case, you can contact the insurer and let them know the details of the development.

Why do I need home insurance if my new build home is under warranty?

Buying a new build home can give you peace of mind knowing your property is under warranty and guarantee for the build and appliances the first few years. For example, if you buy a new CALA home at Grandhome, you can look forward to two years of warranty and a 24 hour emergency service.

But, just because your home is brand new, you’ll still need home insurance for sudden or unexpected accidents that happen that are completely out of your control.

What stage should I get insurance when buying a new build home?

Your new home insurance policy should be set up and be in place before the exchange of contracts. This is important because from this moment onwards, you will have full responsibility for your new property.

Mortgage providers will usually only settle the funds for a new home purchase if your home insurance policy is active, so make sure you are organised and have this set up ahead of time to avoid any delays moving into your new home.

So, what insurance do I need when buying a new build home?

You can get buildings cover, which will protect the structure and permanent fittings in your home and it is essential that you have this in place when contracts exchange.  It is also advised that you  opt for contents insurance as well which will protect you and your families’ belongings inside your home.

Buildings and contents insurance can be bought together as a single home insurance policy, but you can also purchase it separately, depending on your needs. 

Buildings insurance

Buildings insurance cover is usually available alongside contents insurance as part of a wider home insurance policy. If the worst happens, your home insurance will cover the costs of repairing and rebuilding your home.

If you were to face a flood, fire or any damage to home systems like burst pipes, buildings insurance will cover you for this.

Contents insurance

Contents insurance will cover everything inside your new build home that isn’t part of the structure. This covers items that can be moved like carpets, blinds, curtains, and kitchen appliances, in addition to your possessions such as televisions, computing equipment, furniture and bikes.

Life insurance

Depending on your circumstances, some mortgage providers will request you have life insurance in addition to buildings insurance. Life insurance will pay out a lump sum to help you pay off any debts, like your mortgage.

Some mortgage providers want you to have life insurance so they know the mortgage can be repaid if you do pass away.

Need more information on new build home insurance options?

You can find quotes and further information on new homes insurance on comparison websites, such as Go Compare. If you need insurance that meets specific requirements, you can get in touch with an insurance broker, like Laurie Ross for specialist help.

I’m not familiar with the new build buying process, do you have a guide?

We have a guide on the website that outlines the process of buying a new build home for the first time. There are many advantages of buying a new build home, which you can find in the guide.

About Grandhome

Haven’t heard about us just yet? Grandhome is a sought-after community in Bridge of Don, Aberdeenshire. Situated close to Aberdeen city centre, Grandhome is the perfect location for commuters and families.

There are a range of new build homes for sale. Get in contact if you would like to learn more about Grandhome.