NEW home warranties are designed to offer buyers peace of mind that any defects in their home will be put right.

Having a warranty in place will also be a condition of your mortgage.

A warranty is essentially an insurance policy for newly built homes. It is taken out by the builder but is in place to protect you, the buyer. New home warranties typically last 10 years.

If you buy a home off-plan, once you exchange contracts the warranty will cover your deposit against the firm going insolvent.

If the builder goes bust and doesn’t start or complete the property, your warranty provider will reimburse your deposit.

Once the property is built, the warranty is split into two periods:

l The defects insurance period

This covers the first two years. Issues such as windows leaking or problems with the heating must be rectified by the builder if they are due to their poor workmanship.

l The structural insurance period

This covers years three to 10. Here the builder is only responsible for major problems with the structure of the house - foundations, external render, roofs, ceilings, chimneys and load-bearing parts of the floors etc.

Natural wear and tear isn’t covered, nor is weather damage or any problems caused by your failure to maintain the property.

Damp and condensation may be covered but only if they have occurred as a result of the builder’s failure to comply with the warranty provider’s standards.

Damage caused by flood, fire etc is not covered. You still need to take out a home insurance policy.

If you move, the warranty is transferred to the buyer of your home.

But any work you have had done on the home yourself – such as loft extensions or conservatories – will not be covered by the warranty.

The solicitor acting on your purchase of a new-build home will give you all the necessary advice.