Ever Wonder What a Builder’s Warranty Covers?

Builders’ warranties vary greatly, so it is important that homeowners take the time to learn what’s covered and what is not covered.

Things can go wrong, even with a brand new home. That is why many buyers of newly built homes are interested in warranties, which promise to repair or replace certain elements of the home. Many home warranties are backed by the builder, while others are purchased from independent companies that assume responsibility upon closing.

It is important to to understand what’s covered with your home warranty, what’s not covered, how to make a warranty claim and the process for resolving disputes that might arise between you and the builder or warranty provider.

Warranties generally do not cover household appliances, tile or drywall cracks, irrigation systems or components covered under a manufacturer’s warranty- these items will be detailed by the home builder and you will be advised which manufacturer to contact. Keep in mind also that warranties also exclude expenses incurred as a result of a warranty repair, such as the need to store household belongings while a repair is being made.

Most warranties for newly constructed homes offer limited coverage as they relate to components of the home, such as windows, doors, roofs or plumbing, electrical and HVAC systems. Warranties typically provide coverage for one to two years, although the specific time period may vary by from component to component or even from builder to builder. The coverage may last up to a decade on major structural elements of the home like structural and foundation.  Warranties may also define how repairs will be made and by whom.

These are questions to ask you builder before you close on your new home purchase:

• What all does my home warranty cover?
• What all is not covered my home warranty?
• What is the process I should follow if I ever have a warranty claim?
• What is the timeline for this process to completion?
• If my warranty claim is denied, is it possible for me to dispute your decision?

The information you gain should help you understand where you will stand if you ever need to file a warranty claim, if unsure. Many home builders will easily lay out their warranty coverage and it can vary greatly from builder to builder. Having coverage is a good first step but you will want to keep up with timing on items while living in the home. Having a one year inspection before a bulk of the warranty coverage expires is never a bad idea to help cover areas you may not be able to see especially if you did not do an inspection when you purchased. Most home builders will stand by their work and have a good reputation for customer service even after closing, your real estate agent can help advise on this based on experience with that home builder. This is one of the many reasons it is always good to have a real estate agent on your side when building a home. We can be there for YOU, even when it comes to home warranties offered by the home builder to help make sure you are covered.

After time in your new home you can also seek your own third-party warranty coverage. This option will also help cover most things in your home while if needing repaired will only cost you a small deductible. If unsure of who to contact on us, feel free to reach out to us…we will have to help point you in the right direction!