What Does a Builder Cover on a New Home?

Posted September 24, 2019

In Construction, For Homebuyers, New Homes

What Does a Builder Cover on a New Home?

So, you’ve decided to buy a newly constructed home and it comes with a builder’s warranty. Great news, right? Does this mean the builder will assume financial responsibility for anything that breaks? Well, not exactly…a builder warranty is issued to most new constructions, but it does cover a very specific list of features in and on the house.

Home Warranty vs. Builders Warranty

Let me start by clarifying the difference between a home warranty and a builder’s warranty. There are definitely some important differences between the two. The primary difference being that a builder warranty covers new construction, or a remodel done by a builder and comes with most newly built homes. A home warranty applies to existing properties and covers items like appliances, and household systems (like electrical, plumbing, heating and cooling). While the builder warranty is provided by the builder, a home warranty is purchased by the buyers or sellers of a property…makes sense, right?

What is covered and what is not?

This typically depends on the specific features of the house. Typical builder’s warranties can last anywhere from six months to two years. In general they should cover all of a home’s materials and workmanship. This usually includes:

Covered

Concrete foundations and floors
Basements that are Finished
Shingles
Carpentry
Waterproofing
Insulation
Siding and/or stucco
Doors and windows
Garage doors
Paint
Plumbing
Electrical
Heating and cooling
Septic systems
Well pumps and pressure tanks

Not Covered

Household appliances after 1-year manufacture warranty
Defects resulting from work conducted by the homeowner or by anyone else after the builder has completed
Shrinkage and expansion of the house (typical cracks in the stucco and caulking)
Normal fading of paint
Weather related issues
Condensation or dampness caused by failure of the homeowner to maintain adequate ventilation
Insect damage (other than the termite pre-treat coverage)

It is a great idea when buying a newly constructed home to get a list of what is covered in the construction warranty from the builder, so you do not assume something is covered and it actually isn’t. You want to know what is covered and the length of the coverage. If a homeowner acts in good faith and works well with the builder, the builder is more likely to help you even if it’s not a warrantied item. It is also a good idea to get a book and ask for all manuals that a builder has so you have the means to contact sub-contractors as well as appliance information to call on warranty work and possibly even extend the warranty.

Repairs and maintenance fees are both a part of home-owning, I am here to help you make sense of what is and is not covered by the builder.

About the Author:

DEBRA COZENS

NEW HOME SPECIALIST, REALTOR®

928-713-8474 || debrac@prescottrealty.com

Debra specializes in helping people who want to purchase a new home, but don’t want to have the joy of homeownership robbed from them due to constant maintenance and upkeep. Debra believes that a newly-constructed home can be the answer to more personal freedom and less stress for people’s lives and possesses the construction & real estate experience to help folks welcome the perfect home!