What is the Warranty on New Homes?
Most new homes are covered by builder warranties for workmanship, distribution systems and structural components.
Warranties for New Homes
What is covered on a newly constructed house?
During the first year, newly constructed houses are covered for workmanship and materials, distribution systems and structural issues under a new home warranty (sometimes referred to as a builders warranty or a structural warranty). Most warranties on new construction cover paint, door and siding, while coverage for HVAC, electrical systems and plumbing are generally covered for two years.
New home warranties are purchased by the home builder and provide protection for the homeowner for up to 10 years.
In addition to builder warranties, home warranties can be bought by the home builder, the seller or the buyer. Home warranties cover the home’s major systems and appliances, including air conditioning, heaters, refrigerators, ovens and dishwashers.
When can a warranty for a new home be purchased?
Home builder warranties are purchased by the builder at the time of the sale of the new home.
What type of warranty do I need on a home?
All home owners benefit from having a home warranty since they offer financial protection against failures that might occur to the home’s major systems and appliances.
Home owners or home sellers who have a third-party renovation to their existing home benefit from a home builders warranty that will cover structural elements that were part of the renovation.
New home warranties are extremely important for homeowners buying a new construction home. The average cost of a structural defect is over $42,500.
What is the difference between home insurance and a builder home warranty?
Home insurance covers any accidental damage to your house and movable possessions, while a home builders warranty provides coverage against structural defects for a period of up to 10 years.
Do I need a home warranty, a home builders warranty and home insurance?
Since your home is often your biggest asset, a full range of coverage from a home warranty, a home builders warranty and home insurance offer you the most comprehensive protection.
Each type of coverage offers different types of protections with no overlap.
How long does warranty on a new home last?
A home builders warranty offers coverage for up to 10 years, while a home warranty is generally a 12-month contract that can be renewed annually.
A home insurance policy is renewed annually and costs between $250 and $1000 on average.
While a home builders warranty and a home warranty are elective, a home insurance policy is usually required by a financial institution for a mortgage.