Warranty for Newly Built Homes

For most people, a home is the most expensive purchase and biggest investment they ever make. It’s obvious that buyers of newly built homes are interested in warranties. These builder warranties promise to repair or replace certain elements of the home, within a certain time frame. When considering a builder, it’s important to understand what is covered under the warranty, how to make a warranty claim, and the process for resolving disputes that may arise between you and the builder in the future.

Many home warranties are backed by the builder. Some home owners purchase additional coverage on their own from third-party warranty companies, such as Home Shield, to supplement the coverage their builder provides.


Warranties for newly built homes generally offer limited coverage on workmanship and materials relating to various components of the home, such as drywall settling cracks, insulation/ventilation, HVAC, plumbing, and electrical systems. Warranties also typically define how repairs will be made and how to submit your claim.

The duration of coverage varies depending on the component of the house. Coverage is provided for workmanship and materials on most components during the first year after close. Most builder warranties on new construction, cover exterior siding, doors, trim, cabinets, drywall and paint during the first year, as long as it was not damaged. Coverage for HVAC, plumbing, and electrical systems is generally two years after close. The longest and most important warranty is the structural aspect of the home, and this is normally covered for the first 10 years after the home was completed.

Cost to You

Most warranties for newly built homes, do not cover expenses an owner may receive as a consequence of a major construction defect and repair. A good example would be the cost of having to move out of your home while repairs are being made. Although this is a result of negligence on the builder, its difficult to have the builder do more than make the repairs and get out of your hair.

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