Premier Guarantee for New Homes: the structural warranty on a new-build

A Premier Guarantee for New Homes warranty is a ten year structural warranty on a newly built home. It is arranged by Premier Guarantee, and the premium is paid by the developer, not by you. The first two years are the builder's responsibility: they must put right defects in the home. From year three to year ten, the insurance takes over and covers structural damage, contaminated land and, where the insurer carried out building control inspections, health and safety issues¹.

The cover is not a maintenance contract and it is not buildings insurance. It sits behind your own home insurance and deals with defects in how the home was built, not with storms, floods or accidental damage. It transfers automatically to later owners, so a resale buyer keeps whatever is left of the ten years⁴.

This page explains what the warranty covers and what it does not, how the two periods work, how claims and deadlines operate, what happens if you want to cancel, and where to take a complaint. Premier Guarantee's own site carries the current policy documents and the figures that apply to your home, including the excess shown on your certificate.

Premier Guarantee: who arranges the warranty and what that means for you

Premier Guarantee is a brand name for a range of structural warranties arranged by the firm behind it, which also acts as the scheme administrator for the Premier Guarantee for New Homes policy². The insurer behind the policy varies by document version: policies have been underwritten by AmTrust, by Aviva, by AXA, by Liberty and by HSB Engineering Insurance Limited, and some documents name HSB Engineering Insurance Limited and the scheme administrator as co-manufacturers of the product¹¹. Premier Guarantee states that all its policies are underwritten by insurers it describes as A rated¹.

For a homeowner, the practical point is that the name on the certificate is the administrator you deal with, while the firm carrying the risk is the underwriter. That matters if the underwriter fails, because the Financial Services Compensation Scheme protection attaches to the insurer, not to the administrator. It also matters when you complain: the first step is the insurance agent who arranged the cover, then the complaints officer at MD Insurance Services⁵.

The scheme is open to developers rather than to individual buyers. A developer must be registered with Premier Guarantee for New Homes and must have registered the development before the home is built¹⁴. Premier Guarantee says it was a founder member of the Consumer Code for Home Builders, and that a new home built by a registered developer and covered by a New Homes Warranty will be covered by either the Consumer Code for Home Builders or the New Homes Quality Code¹⁵.

What the Premier Guarantee for New Homes warranty covers

The warranty is a ten year policy covering particular types of problems that may occur in the first ten years after the home is built⁵. It is split into three parts: the period before the building is completed, the first two years, and years three to ten¹⁶. The policy documents state that the cover complies with the minimum criteria for New Homes Warranties referred to in the Home Information Pack Regulations 2006¹².

During the structural insurance period, Premier Guarantee lists the parts of the home that are covered: foundations; load-bearing walls, floors, ceilings, staircases and roofs; internal partition walls; chimneys and flues; roof coverings; external finishes such as render; floor decking and screeds; wet-applied plaster; and double or triple-glazed glass in external windows and doors¹. There is also separate mechanical and electrical cover during years one to five, which can include heating systems and boilers, ventilation and air conditioning, lifts and mobility equipment, lighting and electrical systems, security systems, and pumps and water systems that form part of the building¹.

That mechanical and electrical cover has its own conditions. The equipment must be part of the original construction, installed before the certificate of insurance was issued, and something you own or are responsible for. It does not extend to computer software or data, or to freestanding appliances such as kettles, fridges, washing machines and plug-in heaters¹. Premier Guarantee's guidance refers to a separate excess for this cover, distinct from the excess on structural claims, and the amount is set out in the policy documents and on your certificate¹.

The warranty also covers deposit protection, contaminated land and, in some cases, building control work, each dealt with below.

The first two years: the builder fixes defects

For the first two years from the date of completion, or the date specified in the certificate of insurance, the developer is responsible for remedying defects in the home¹⁰. Premier Guarantee's guidance puts it plainly: your developer, builder or housing provider should be your first port of call¹. The same two year defects insurance period applies across the policy documents, and the period runs from the date specified in the certificate of insurance⁵.

The arrangement is the same in the wider market. The Financial Ombudsman Service explains that this part of a building warranty means the builder must sort out problems in the first two years after the building is complete, and that the insurer usually acts as mediator through a resolution or conciliation service¹⁶. Premier Guarantee offers a conciliation service, and the policy documents describe a dispute resolution service that the scheme administrator may offer at its sole discretion where the developer fails to remedy a notified defect or the policyholder is not satisfied with the response².

Social housing works differently. Under the Premier Guarantee for Social Housing policy, the defects insurance period is the first 12 months from the date of completion of the home, or the date specified in the certificate of insurance, rather than two years²¹. Self-builders have their own version: where a builder is appointed to construct the home, the builder is responsible for rectifying defects for a 12 month period²².

If the developer does not put things right, the dispute can move to the scheme administrator. Premier Guarantee has agreed with the Royal Institution of Chartered Surveyors that disputes may be resolved with fixed maximum costs, with appointment by the President of RICS²³.

Structural cover from year three to year ten

From years three to ten of the warranty, the home is protected by the structural insurance period¹. The policy documents describe it as the period commencing on the date specified in the certificate of insurance and ending eight years after that date⁵. The two periods together make up the ten years of cover.

During this period the insurer covers damage due to a defect in the structure of the external envelope of the home, along with contaminated land cover¹. The Financial Ombudsman Service describes the same structure across building warranties generally: cover for structural problems where the builder has not complied with technical requirements, in years three to ten¹⁶. Government guidance on shared ownership says a building warranty will usually cover the cost of structural repairs in the first 10 or 12 years for new-build homes, so the length of cover varies between providers²⁵.

What counts as structural is defined by the policy, not by how serious the problem feels. Premier Guarantee's list of structural inclusions covers the load-bearing parts of the building and the external envelope, and its exclusions rule out general wear and tear, cosmetic or non-structural issues, problems caused by lack of maintenance, weather or natural disaster damage, appliances and fittings, alterations made after completion, homeowner-installed items, non-structural components and snagging¹.

There is a limit of indemnity on the policy, and the excess and the limit are increased each year in line with the RICS House Re-Building Index or a compound percentage, whichever is the lesser. One version of the policy documents gives that percentage as 10% per annum compound and another gives 12% per annum compound, so the two figures differ and the version that applies to your home governs¹².

Deposit protection, contaminated land and building control cover

Three pieces of cover sit alongside the main structural promise, and each has conditions worth knowing before you rely on it.

Deposit protection reimburses a deposit already paid if a builder or developer goes out of business during construction, or if the home cannot be completed because of fraudulent activity¹. It is optional and may not be included in every warranty, so it is worth checking the certificate rather than assuming it applies¹. Where it does apply, cover for the deposit begins when a deposit is paid to the developer and is detailed on the home's initial certificate²⁶.

Contaminated land cover pays the reasonable costs of removing harmful substances where a statutory notice says the land is contaminated, as long as the contamination was there before the home was completed¹. The policy documents set the cover at £500,000 for any newly constructed home and £500,000 for any converted or refurbished home, per new development, with a separate figure of £50,000 for any newly constructed home per home in one version of the wording⁵. Cover for contaminated land commences from the date set out in the certificate of insurance for a period of eight years⁸.

Building control cover applies where the insurer carried out building control or building regulations inspections. The Financial Ombudsman Service explains that if your insurer does this you get extra cover for health and safety issues and contaminated land¹⁶. Premier Guarantee's contaminated land and approved inspector building control cover applies only in England and Wales, so homeowners in Scotland and Northern Ireland do not have that element¹².

What the warranty does not cover

The exclusions matter as much as the cover, because most disputes about new-build warranties turn on whether the problem is a defect the policy insures or something else.

The policy does not provide any cover for legal liabilities you may have to third parties arising out of the use or ownership of the home⁷. It does not cover snagging damage that is purely cosmetic, alterations, lack of maintenance, normal wear and tear, improper use, or anything the purchaser knew about before buying⁷. Damage caused by fire, smoke or severe weather is excluded, as is loss caused by theft or accidental damage, and reservation fees or other fees payable to the developer other than the deposit⁷. Those risks belong to your buildings and contents insurance instead.

The definition of the home itself is narrower than the property. It does not include a swimming pool, lift, escalator or associated plant and equipment, mechanical or electrical equipment, temporary structures, free-standing household appliances, fences, retaining or boundary walls that do not support the structure, or personal chattels⁵. Loss or damage arising from any alteration, modification or addition to the home after the certificate of approval was issued is excluded unless the scheme administrator was informed, the policy endorsed and any additional premium paid⁵. For converted, refurbished or renovated homes, existing double or triple glazing panes are excluded unless the developer or builder newly installed them⁵.

There are also standard insurance exclusions for radioactive contamination and for chemical, biological, bio-chemical and electromagnetic weapons, with an exception for radioactive isotopes used for peaceful purposes⁵.

How to make a claim and meet the deadlines

The route depends on which period you are in. In the first two years, the developer, builder or housing provider is responsible for remedying defects and should be the first port of call¹. If they do not respond, the matter moves to the scheme administrator.

For structural claims, the policyholder must give written notice to the scheme administrator as soon as reasonably possible, take all responsible steps to prevent further loss or damage, and submit full written details of the claim with all correspondence, reports, plans, certificates, specifications and quantities as may be required⁸. The same notification steps apply to claims for remediation expenses and for the approved inspector building control function⁸. Premier Guarantee's claims team can be contacted on 08444 120 888 or by email at claims@premierguarantee.co.uk, and notifications can be managed and submitted online².

The deadline is the part most often missed. It is a condition of payment for a structural claim that concerns have been notified to the developer in writing before the end of the defects insurance period, and if the developer does not rectify them, the defects and the resulting damage must be notified to the scheme administrator in writing within six months of the end of that period. The insurer has no liability for anything not notified within those time frames⁵.

For contaminated land claims, the policyholder should notify the scheme administrator immediately on discovery of an occurrence likely to give rise to a claim, and the administrator can provide a claim form⁵. For developer insolvency, the policyholder should notify the scheme administrator at 2 Shore Lines Building, Shore Road, Birkenhead, Wirral, CH41 1AU, or by email at enquiries@premierguarantee.co.uk⁴.

Cancelling the policy, and what happens if the insurer stops trading

There is a 14 day cooling-off period, starting on the day after you receive the policy documents²⁹. After that, cancellation is limited. The policy documents state that the policy can be cancelled within 14 days of the day after receipt of the certificate of insurance, with no return of premium after the certificate of insurance has been issued⁵. Cancellation requests must be made in writing, by post or email, and there may be charges for services on cancellation³¹.

The insurer also reserves the right to cancel and return any premium, less any retentions, if the building period exceeds three years from the start date notified to the scheme administrator when the original application was made, or if building work ceases for 180 days or more before the home is complete³³. The policy terminates automatically without refund of premium if the home is destroyed by a cause other than one insured against, if the insurer has paid a claim under the relevant section, or if the insurer has paid the maximum amount under the limit of indemnity unless reinstated².

Before cancelling, the policy documents advise checking with your mortgage lender, because they may require the cover or its equivalent as a condition of the loan, and a purchaser and lender will usually require it if the home is sold within the period of cover³¹. Premier Guarantee states it is recognised by UK Finance and the majority of the country's banks and building societies³⁵.

Complaints, disputes and FSCS protection

Complaints go first to the insurance agent who arranged the insurance. If they cannot resolve the problem, the next step is the complaints officer at the firm behind Premier Guarantee, by email at complaints@mdinsurance.co.uk or by telephone⁵. Premier Guarantee says that when it issues a final response it will always tell you whether you have the right to refer the complaint to the Financial Ombudsman Service and explain the next steps⁴⁰.

The policy documents state that any complaint that cannot be resolved may be referred to the Financial Ombudsman Service, and that eligible complainants have the right to refer unresolved complaints there⁵. The Financial Ombudsman Service can look at complaints about building warranties, and its guidance sets out how it handles them¹⁶. Complaints about the process of the sale of the house, rather than the warranty, go to the relevant consumer code instead, and Premier Guarantee directs homeowners to the code that applies to their home¹⁵.

On protection if the insurer cannot pay, the position is set out in the policy documents: policies issued on behalf of the underwriter are covered by the Financial Services Compensation Scheme, and the level and extent of compensation depends on the nature of the policy contract⁵. The scheme's own guidance lists warranty claims at 90% of the claim⁹. Premier Guarantee also offers a free dispute resolution service alongside its claims team¹.

If you need free, impartial help understanding your rights on a new-build, the Financial Ombudsman Service publishes consumer guidance on building warranties, and Citizens Advice and MoneyHelper can help with consumer disputes more generally¹⁶.