The Home Information Pack Regulations 2006

PART 1 General

Interpretation

1.  In this Schedule—

“annual increment” means a compound increase occurring each 12 months after the commencement date, the increase being based on the lower of—

(a)

the rate of inflation in re-building residential premises; or

(b)

a rate of 10%;

“common parts” means such common parts—

(a)

as relate to the property;

(b)

as are shared with other premises; and

(c)

as are built or converted by the developer together with the property;

“commencement date” means the day the new homes warranty commences;

“continuous structures” means premises that share common foundations;

“damage” includes water ingress;

“financial compensation” relates to the actual costs incurred in the carrying out of remedial work to the property by a person other than a warranty provider;

“policy-holder” means—

(a)

the owner of the property for the time being; and

(b)

the party to the new homes warranty for the time being (not being a warranty provider);

“structural features” means—

(a)

foundations;

(b)

walls bearing normal residential loads;

(c)

non load-bearing partition walls;

(d)

wet-applied wall plaster;

(e)

external render and vertical tile hanging;

(f)

load-bearing parts of roof;

(g)

tile and slate coverings to pitched roofs;

(h)

ceilings;

(i)

load-bearing parts of floors;

(j)

staircases and internal floor decking and other floor screeds intended to support normal residential loads;

(k)

retaining walls necessary for structural stability of the property;

(l)

double or triple glazed panes to external windows and doors;

(m)

under-ground drainage that the policy-holder is responsible for maintaining; and

(n)

chimneys and flues;

“warranty period” means the period of time during which the new homes warranty exists; and

“warranty provider” is any person who does one or more of the following—

(a)

offers the new homes warranty to an owner or potential owner of the property;

(b)

effects the contract of insurance which is the subject of the new homes warranty;

(c)

carries out such a contract;

(d)

deals with such a contract as an agent;

(e)

makes arrangements for another person (whether as principal or agent) to buy, sell, subscribe for or underwrite such a contract;

(f)

makes arrangements with a view to a person who participates in such arrangements buying, selling, subscribing for or underwriting such a contract (whether as principal or agent);

(g)

assists in the administration and performance of such a contract;

(h)

advises a person (in that person’s capacity as a policy-holder or potential policy-holder) on the merits of such a contract; or

(i)

agrees to carry out any of the activities specified in sub-paragraphs (a) to (h), and

where there is more than one warranty provider in relation to a particular new homes warranty, “warranty provider” refers to any of those persons.

New homes warranties – general

2.—(1) A new homes warranty complies with this Schedule if it—

(a) is made under the arrangements described in Part 2; and

(b) contains, as a minimum, the terms described in Part 3, although the term described in paragraph 10 must only be included where the new homes warranty makes provision for a developer’s obligations to the policy-holder.

(2) Any warranty dealing with any defects in the design, building, or completion of the property, which contains—

(a) terms additional to those described in Part 3 of this Schedule (without excluding or limiting them); or

(b) terms more favourable to the policy-holder than those described in Part 3,

may be regarded as complying with this Schedule.

(3) A new homes warranty may be regarded as complying with this Schedule if it contains—

(a) any of the limits described in Part 4; or

(b) any limits of a type described in that Part, but which are more favourable to the policy-holder.

(4) Any new homes warranty which contains terms less favourable to the policy-holder than those described in Part 4 does not comply with this Schedule.

(5) The undertakings described in Part 3 of this Schedule must be made in the new homes warranty by a warranty provider.