An article in The Guardian of 5th February 2017 highlights payments made by NHBC to housebuilders.  The Guardian reports that the payment takes into account the number of homes registered with NHBC and the cost of claims.  NHBC explains that it recognizes "good claims history" and that this is usual practice in the insurance industry.  Critics question the impartiality of NHBC and accuse NHBC of siding with developers.

Whilst the article reports that NHBC claims to have an 80% share of the warranties market, there are other rated insurers providing new home warranties.  It is worthwhile becoming more informed about the terms of cover and this applies to all of us in this sector - developers themselves, end-users and their legal advisers.  Differentiation in cover can be maximum liability per unit and/or per development, whether cover extends to retained structure which is relevant where the project is to convert existing structure such as offices to flats under Permitted Development rights and technical guidance and the number of inspections offered.  We should all become more informed and more discerning.