Generally speaking, new construction homes come with a builder warranty. A builder’s warranty, however, does not necessarily mean the builder will assume financial responsibility when something ‘breaks’ in your newly constructed home.
A builder’s home warranty provides specific coverage on major structural elements of a new home from physical damage that may occur. If you want to find out exactly builder warranty covers, then read on.
Home warranty vs. Builder warranty
A home warranty applies to existing properties and covers appliances and household systems and is purchased by the homeowner. On the other hand, a builder warranty covers new home construction or a remodel by a builder and is provided by the builder.
A builder warranty covers permanent parts of the home like the concrete floors while a home warranty is a service contract that covers replacement on items to an existing home. They may sound similar, but there are distinct differences between the two. Primary differences focus on coverage, length of coverage, and cost.
What’s covered and what’s not in builder warranties.
It’s important to note that a builder’s warranty on new homes offers limited coverage for a specific amount of time. This means that the length of the warranty will depend on what features your home has. However, the typical builder warranty lasts from six months to two years, with some lasting up to 10 years for “major structural defects” like an unsafe roof.
What Does a Builder’s Warranty Cover?
There are differences in warranties from builder to builder, but in general, a builder warranty should cover a home’s materials and workmanship.
- Footings and Concrete foundation system
- Columns
- Load-bearing walls and partitions
- Roof framing systems
- Beams
- Girders
- Lintels
- Masonry
- Dry basement
- Septic system
- Doors and windows
- Insulation
- Thermal and moisture cover
- Waterproofing
What a Builder’s Home Warranty Doesn’t Cover
- Weather-related issues
- Normal fading of paint
- Household appliances
- Insect damage
- Shrinkage and expansion of the house
- Shrinkage of joints/minor cracking
- Dampness/condensation caused by failure of the homeowner to maintain adequate ventilation
- Defects resulting from work conducted by the homeowner or anyone else after the builder’s work is completed
Builder Warranty Essentials
When you’re buying a newly constructed home, it comes with a builder warranty provided by the builder, or a third-party warranty company. So, before closing it’s important to ask your builder the following questions:
- What does your builder warranty cover?
- What is not covered by this warranty?
- What’s the process or timelines for claiming?
- What is the extent of your liability?
- Is it possible for me to dispute your decision to deny a claim?
Purchasing a home is expensive, so make sure you protect your investment while enjoying the added benefits of peace of mind that a builder warranty brings.
Have you taken advantage of a builder’s warranty? Share your experiences in the comments below…
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