What Does a Home Builders Warranty Cover on New Construction | Structural Warranties for Home Builders
Coverage for Home Builders Warranty
What is covered with a home builders warranty?
A home builders warranty covers the major structural elements of a new home from physical damage that may occur. A builder warranty also provides coverage on workmanship and materials such as windows, tile and drywall as well as distribution systems like electrical and plumbing.
It’s important to check when warranty coverage starts. Some warranty companies do not provide coverage until the third year after home closing. If the symptoms of the structural defects occurred in years one or two, the builder is responsible for fixing damages throughout the term of the warranty.
A builder may provide extended coverage for structural defects up to 10 years.
What is not covered with a home builders warranty?
Since all home builder warranty plans provide different coverage, builders should carefully review coverage exclusions and limitations.
Most home builder warranties don’t cover household appliances. Structural damages as a result of natural disasters such as a tornado or hurricane are not covered under a home builders warranty. Detached garages may be covered under some of the warranty plans, so long as the structure was part of the home’s original construction. If a builder adds a detached structure—a new garage for example—after the original construction is completed, that new garage may not be considered part of the original 10-year warranty. Since that is considered a remodel, the builder may need to purchase a 10-year structural home improvement warranty.
What is a home builders warranty?
A home builders warranty, also known as a structural warranty, is a contract between the home builder. The homeowner is the beneficiary of the warranty. The home builders warranty defines the home builder’s obligations related to quality of home construction and continuing obligations.
Under the agreement, the builder is the insured and the homeowner is the beneficiary. In a typical home builders warranty agreement, the home builder warrants that a new home will be free from qualified structural defects for a period of 10 years. Additional coverage is available for workmanship and systems.
What load-bearing elements of a home are typically covered with a home builders warranty?
The following load-bearing items are covered in most home builder warranties:
- Load-bearing walls and partitions
- Roof framing systems
- Floor Systems
What is the cost of an average home builders warranty claim?
The average cost of a home builders warranty structural claim ranges between $42,000 to $113,000.
Is a home builders warranty worth buying?
A home builders warranty is worth buying to protect home builders from ongoing liability related to structural damages. Home builders find home builder warranties essential to limiting their risk.
Get a free quote on home builder warranty coverage from 2-10 Home Buyers Warranty.