How much does a new build warranty cost?
As a rough guide, around 1% of the rebuild cost for new homes registered before work starts and around 1.25% once the build is under way (with no broker fee on top - we are paid by commission from the provider). Here is what drives the price.
- Instant response
- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- No broker fee to pay
- Single plots to full estates
The rule of thumb
New build warranty cost as a percentage of the rebuild cost
Most new homes come out at a percentage of the rebuild cost - what it would cost to build the homes again, not what they will sell for or the gross development value. That figure covers the insurance premium and the provider's technical inspection and administration fees (with no broker fee on top - we are paid by commission from the provider).
For example, four new houses with a total rebuild cost of £1,200,000, registered before the start, would typically come to around £12,000 in total. The same four houses registered once the build was under way would be nearer £15,000 (with no broker fee on top - we are paid by commission from the provider).
These are indications only, not quotes. The warranty provider sets the price once it has reviewed your site. Minimum premiums and fixed inspection fees can push small sites and single homes higher, and extras such as 12 year cover or deposit protection add to it. Your quotation shows every part of the cost separately.
What affects the premium
What new build warranty providers price on
- Rebuild cost of the homes - the starting point, as the percentages above show
- Number of homes, and whether the site is built in phases
- How they are built - masonry, timber frame and modern methods are priced differently, as are basements and flat roofs
- Ground conditions - slopes, made ground, trees, mining areas and anything else that affects the foundations
- Stage of the build - registering before the start is usually cheapest, cover once work is under way costs more
- Your track record and that of your contractor
- Policy length and extras - 12 years instead of 10, or cover for buyers' deposits
What you pay
What a new build warranty quote is made up of
Every quotation we give sets out each part of the cost separately, so you can see exactly where the money goes.
Insurance premium
The cost of the cover itself, set by the warranty provider or insurer, plus insurance premium tax where it applies.
Technical inspection fees
The provider's charge for reviewing the design and inspecting the homes at key stages of the build.
Administration fees
The provider's administration fee, where it charges one. There is no broker fee to pay. We are paid by commission from the warranty provider, which is included in the premium.
When it is payable
Most providers ask for payment when the site is registered, before work starts. On phased sites the cost is often paid phase by phase as each is registered. Where the build is already under way, payment is usually due in full before cover is confirmed. Your quotation will say exactly what is due and when.
Example scenarios
How the price changes from one site to another
These are illustrations, not quotes, and each percentage is of the rebuild cost (with no broker fee on top - we are paid by commission from the provider). They show why two sites of a similar size can be priced very differently.
A self-build home, registered before the start
One home, one set of inspections and one certificate. The rule of thumb says around 1% of the rebuild cost, but the provider's minimum premium and fixed inspection fees often take a single home above that.
A pair of semis on an infill plot
An SME developer building two houses in a gap between existing homes. Around 1% of the rebuild cost as a starting point, with minimum fees likely to push it a little higher, and more if the ground needs special foundations.
A phased estate of 40 homes
Registered phase by phase, with the cost of each phase paid as it is registered. Around 1% of the rebuild cost, with extras such as deposit protection for off plan buyers adding to it.
Six houses already at first floor level
The provider did not see the foundations, so it needs evidence and may ask for parts to be opened up. Expect around 1.25% of the rebuild cost. For homes well advanced or finished, see Retrospective Warranties.
Ways to keep the cost down
- Ask for quotes while your drawings are being finalised, and register before you start on site
- Have the structural calculations and a ground investigation report ready - uncertainty costs money
- Use a build method and specification the provider is comfortable with - we can tell you which
- On a larger site, register in phases so you pay as each phase starts
- Keep dated photographs of every stage, especially anything that will be covered up
- Tell the provider about changes early, before they become problems at inspection
Request an indication
Tell us about your homes and we will give you an indication of what a new build warranty is likely to cost, before you commit to anything.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Sites anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
