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Warranties For New Construction Homes

Purchasing a home can be one of the most significant financial transactions many people make in their lifetime, making warranties for those homes, new construction especially, popular among consumers. Things can go wrong in new homes too, so these warranties promise to replace or repair certain elements or items of a person’s home if it occurs within a certain timeframe after the home is built. There is a wide variety of builder’s warranties available, so understanding what a particular warranty covers as well as how to make any claims is important to know before you purchase the warranty.

Are there other kinds of warranties?

A lot of home warranties will be backed by the home’s builder. Other warranties the builder can buy from independent companies that are responsible for certain claims, and others are third-party company warranties bought by the homeowner in addition to their builder’s policy. The Department of Veteran’s Affairs (VA) and the Federal Housing Authority (FHA) both require builders to buy warranties from third-party companies so home buyers with VA or FHA loans are protected.

When looking for a home warranty, you will want to compare what is covered, any limits to coverage, the process for making a claim, and how to resolve any disagreements between you and your provider or builder.

What does a new construction warranty normally cover?

New home warranties tend to span one or two years and cover certain components related to materials and workmanship like doors, windows, roofs, siding/stucco, plumbing, HVAC, and electrical systems. Defined in the warranties is the repair process and who makes those repairs. The length of the coverage really depends on which component, with some lasting up to a decade for major structural problems that are considered unsafe.

New construction warranties don’t usually cover appliances, irrigation systems, cracks in drywall or tile, or components with a warranty provided by the manufacturer, and they also don’t normally include any expenses created by during the repair process, like storing belongings elsewhere if needed.

Questions you should ask your builder or provider about warranties:

  • What is covered by this warranty?
  • What is not covered?
  • What process do I need to go through if I have a claim?
  • Are denied claims disputable?
  • How liable are you?
  • Can you refer me to home owners who have worked with you in the past?

The answers to these questions should help you determine whether the warranty is the right choice for you and what the process is for filing a claim. You can also check with the contractor licensing board in your state to confirm that builder you are considering has offered you all the warranties as is required. VA loans and FHA loans also come with plenty of information on the topic of warranties.

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