NHBC Buildmark Choice is a warranty and insurance policy designed for landlords and long leaseholders of newly built and newly converted homes that are rented out. It applies to properties registered with NHBC from 1 April 2025, and it is aimed at housing providers and other landlords who let homes for social rent, private rental and shared ownership.

This page explains what the policy covers, how the periods of cover work, and what landlords and long leaseholders should understand about their position under it. The information here is a general overview. The full terms, conditions and exclusions are set out in the Buildmark Choice policy booklet, the confirmation of acceptance and registration of project document, the Buildmark Choice certificate and the policy schedule, which together make up the policy.

You can read more about the product on the NHBC website at https://www.nhbc.co.uk/warranties/buildmark-choice.

Who the policy is for

Buildmark Choice is built around the rental market rather than the owner-occupier market. The target market is landlords and long leaseholders of homes for social rent, private rental and shared ownership. In most cases it is the housing provider or other landlord who is named on the Buildmark Choice certificate as the first owner of the home, and the policy documents are provided to that landlord by the builder.

The cover is intended to benefit each owner of a home during the period of cover, and it also benefits tenants who hold a long leasehold title, including tenants under a shared ownership lease, in the circumstances set out in the policy. No one other than the owner of a home has the right to claim under Buildmark Choice or otherwise enforce it.

How the cover is structured

The policy is split into three sections, each providing a different period or type of cover.

1. Section 1 is optional builder insolvency cover, available for an additional premium. It provides cover if the builder becomes insolvent during the period up to the completion date of the home and is unable to finish construction. This section is for the first owner who entered into the contract with the builder only, and a tenant named in a shared ownership lease cannot claim under it.
2. Section 2 is the builder warranty, provided as standard. During the first two years of the policy, the builder must put right any defect, and any damage caused by a defect, at their own cost and within a reasonable time. This is the builder warranty period. NHBC guarantees the builder’s obligations under the builder warranty, so if the builder fails to meet them, you may be covered by the NHBC guarantee. For matters involving shared parts, the builder warranty period is three years rather than two, running from the completion date or warranty release confirmation of the first home that shares those parts, whichever is later.
3. Section 3 is insurance cover, also provided as standard. It runs for the eight years after the builder warranty period ends, so the standard policy provides ten years of cover in total. During this period NHBC will, at its choosing, either cash settle or arrange to put right damage resulting from a defect caused by the builder failing to meet the NHBC requirements when building certain parts of the home. Section 3 also includes, as standard, cover for loss of rent and for contaminated land.

The cover under sections 2 and 3 only comes into force once NHBC issues a Buildmark Choice certificate and policy schedule.

Optional additions

Two further options can be selected at the time of registration for an additional premium, and the policy schedule will show whether they apply.

1. The first is professional fees cover, which covers payments made to certain independent professional experts you engage in support of a valid claim, provided NHBC gives prior written consent. The amount payable is capped at £50,000 or 10% of the available overall financial limit for the scheme, whichever is less. Fees for solicitors, barristers or other legal advisers are not covered, and fees above the relevant professional body’s fee scales or incurred without prior agreement are also excluded.
2. The second is an additional two years of cover for section 3, which extends sections 3.1, 3.2 and 3.3 from ten years to twelve years in total. This extension excludes contaminated land cover, though it includes the professional fees cover if that option has been selected.

Examples of what is covered

During the insurance cover period, examples of what the policy covers include water getting into the home through the roof or walls due to a defect in certain parts of the home, damage resulting from a defect in the foundations, roofs, load-bearing walls and load-bearing floors, damage resulting from a defect in the underground drainage serving the home where the policyholder is legally responsible for it, and damage resulting from a defect in staircases inside the home.

The contaminated land element covers the cost of work needed to treat, isolate or remove contamination from the land where a statutory notice has been issued, or could be issued, because of the condition of the land. NHBC will either carry out the work or pay what it would cost them to have it done.

Examples of what is not covered

Buildmark Choice is not designed to cover every problem that may occur in a home. Cosmetic damage is not covered under the insurance period, and damage reported to the builder more than seven days after the completion date is not covered under the builder warranty. Other examples of things you cannot claim for include the transmission of sound into, within or from the home, water entering an underground garage or a basement not designated as living space where structural stability is unaffected, cosmetic matters such as cracking that does not weaken structural stability or affect weather tightness, changes in the colour or texture of or staining to finishes, and damage that only affects floor coverings.

The policy also carries a set of general exclusions. These include loss or damage caused by anything other than the builder failing to meet the NHBC requirements, gradual deterioration, wear and tear, neglect or lack of maintenance, defects or damage you knew about before buying the home, work done by anyone other than the builder, and anything done to the home or land after the completion date. Storm, flood, fire and similar perils are excluded, as are loss of enjoyment, loss of use, inconvenience or distress, and any reduction in the value of the home or land. The full list is set out in the policy booklet.

Minimum claim value and financial limits

A minimum claim value applies to claims for damage caused by a defect during the insurance period. If the cost to NHBC of repairing a defect is below the minimum claim value shown in your policy schedule, it will not be covered. If the repair cost meets or exceeds the minimum claim value and the defect meets the other requirements for cover, NHBC will pay the reasonable costs up to the financial limit, or carry out the repair, and you will not have to pay anything towards the work.

Each plot has an individual financial limit, which is a portion of the net development cost determined by the floor area of the plot rather than the rebuild cost of that plot. The exact limits that apply to a home are shown in the policy schedule. On each anniversary of the completion date, the financial limit increases by 5% of the original limit until the policy ends.

Shared ownership and staircasing

Where a home is held under a shared ownership lease, both the landlord and the tenant fall within the definition of owner, subject to the specific conditions governing how a claim is notified and how any remedy takes effect. In practice, NHBC will normally communicate only with the housing provider in respect of claims. A shared owner who becomes aware of a problem should notify their housing provider, who is then responsible for taking the matter forward with NHBC.

There is an exception to this. If the housing provider fails to notify NHBC within a reasonable period after the tenant has reported the matter, and the tenant can provide evidence that they notified the housing provider, NHBC will deal directly with the tenant.

A housing provider or landlord must give shared owners a copy of the policy documents before they enter into the shared ownership lease. If a shared owner staircases to 100% ownership, they become the only policyholder, the housing provider is no longer an owner and can no longer claim, and the new full owner can deal with NHBC directly. NHBC should be notified as soon as a shared owner reaches 100% ownership.

Selling the home and changes of ownership

When a home is sold, the subsequent owner automatically benefits from the remaining cover under the policy, and all policy documents must be passed on to them. After a sale completes, the previous owner cannot make new claims, although they retain the right to continue with any claim made before completion, and that right transfers to the subsequent owner on completion. Landlords must tell NHBC about any change of ownership of the freehold, commonhold or leasehold of the home as soon as possible, and about any change of managing agent.

How to raise a problem or make a claim

During the builder warranty period, problems should be reported to the builder, and it is sensible to keep a record of what was said, who it was reported to and when. Under a shared ownership arrangement, a tenant should report problems to their housing provider in the first instance.

If the builder cannot be contacted, will not meet their responsibilities, or does not put matters right after their complaints procedure has been exhausted, NHBC can be contacted and may offer its free resolution service. After the builder warranty period, claims are made to NHBC directly. NHBC’s claims line is 0800 035 6422, and claims can also be started online at nhbc.co.uk/claims. General enquiries can be made on 0344 633 1000 or by emailing ccsupport@nhbc.co.uk.

A note on the role of an independent inspection

Buildmark Choice sets out what the builder and NHBC are responsible for, and the standards a new home is expected to meet. It does not remove the value of having a property independently inspected. An independent snagging inspection can identify defects early, including matters that should be reported to the builder within the builder warranty period and cosmetic items that must be raised within seven days of completion to remain the builder’s responsibility. Identifying issues promptly and in writing helps create the record that the policy’s reporting conditions rely on.

This page is provided for general information only and is not a substitute for reading your own policy documents. If you are unsure what is or is not covered, NHBC’s contact details are set out in the policy booklet, and the policy schedule for your home confirms which sections of cover apply.