New house warranty

[moonloops]

Presumably the minimum claim is a clause in the small print!
Not very good but maybe an excess like any insurance.

I hope you had it repaired without too much expense.

Yep, but I can't remember the exact amount it was, although IIRC is was high enough to prevent 90% of claims - short of one of the four walls collapsing..

 

[Piff]

Who did you claim from?

I cant see how they protect the builder or developer other than as a selling point like a warranty on a car, and like cars claims are not always straightforward. The NHBC do carry out certain inpections of course and also check the designs structurally and also check contamination issues etc.

The mortgage providers, I believe, insist on an independent guarantee such as NHBC or Zurich, to cover defects in case of failure by the builder or developer.

Zurich have withdrawn from this market.

To give you an idea of how they work:

NHBC called me in to correct defects on 2 completed houses on a 4 house site where the developer had gone bust. Cost of rectifying the defects was approx £10k. The other 2 houses were incomplete. In negotiations on one of the other houses I was asked by a buyer & the estate agent if I could finish the house & provide a NHBC certificate on completion. I contacted NHBC & was advised that as they had inspected the work to date they could continue their cover on payment of £25 transfer fee. I quoted the buyers approx £16k to finish the house. All agreed, contracts signed with buyer & formal application made to NHBC to transfer certification. Yes they said, it will be £50 plus they would require repayment of other costs they had incurred elsewhere on the site. They would not provide their certificate until they had their £10k back that they had lost on the other 2 houses.

Zurich provided warranty on a house I built approx 5 years ago. During the first 2 years builders liability period the householder called me to advise me of minor defects including shrinkage cracks. One of these was where floor joists had shrunk by up to 6mm under a first floor non load bearing partition. The cause of the shrinkage in this area was due to heating & hot water pipes concentrated in a narrow area. The underside of the wall was packed, skirtings removed & refixed, redecoration carried out & carpets refixed. Householder advised that it was possible that there may be further shrinkage but would be minimal.
2 years later I received an irate call from the householder claiming that his house was falling down as there was a massive gap under the wall that he could nearly get his thumbnail into. Demands of removing ceiling below & floor above to fully investigate. As I was driving at the time & his irate nature I said I would check my records & report back.
I checked & advised him that I had dealt with the shrinkage within my liability period and that a thumbnail gap was minor. For further independent advice he should contact Zurich if he felt I didn't answer his query adequately.
He contacted Zurich. They asked me to correct the defect as it was my liability as it had been notified to me during the first 2 years. I pointed out that I corrected all defects evident in the first 2 years and additional shrinkage occurring after 2 years could not be corrected before it occurred. They didn't like this and opened an investigation at the householders expense, advising me i would be responsible for all costs if found against me. This is after cancelling my membership as they had withdrawn from that market.
They appointed independent structural engineers who agreed with me. Householder out of pocket.