Not upheld: Home insurance claim disputes complaint against National House Building Council (NHBC)

Decision detail

Summary

Mr and Mrs G purchased a new build property in May 2015 with a 10-year NHBC building warranty. In September 2025, they claimed for a drainage system defect that they believed had existed since construction but was only identified in a 2022 report. NHBC declined the claim as it was notified after the warranty expiry date of 30 April 2025. The ombudsman found NHBC's decision fair and reasonable, as the warranty terms clearly required notification within the notification period, which had expired. Although the defect may have existed within the coverage period, the claim notification itself fell outside the contractual timeframe, and requiring NHBC to consider post-expiry claims would create unacceptable uncertainty about its risk exposure.

The Ombudsman's reasoning

The ombudsman found NHBC's decision reasonable because the warranty terms clearly state that NHBC's obligations only apply when claims are notified within the notification period, which ends 10 years from completion (30 April 2025). Although the defect may have existed and been identified within the warranty period, the claim itself was notified after expiry. Requiring NHBC to consider claims outside the cover period would create uncertainty about when its risk expires, which would be unfair to the firm. The ombudsman acknowledged Mrs G's frustration but found that fairness to both parties required adherence to the contractual terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website