A home builder warranty is a type of guarantee provided by home builders to cover certain defects or issues that might arise in new construction. Typically, these warranties cover aspects like the workmanship, materials, and structural integrity of a new home for a specified period. For example, if a new homeowner encounters a problem with something like the West Coast Elevators home lifts, installed as part of the construction, this warranty would ensure that the issue can be addressed without incurring additional costs to the homeowner. This type of warranty is crucial for providing peace of mind, knowing that key components, especially significant investments such as home lifts, are protected against potential faults or defects.
In general, the law says that construction defects are covered for one year after the warranty date, the date the title passed to the first owner of a new home. Plumbing, electrical, heating, cooling and ventilation systems are covered for two years after the warranty date. The coverage provided by warranty programs for homebuilders focuses on labor and materials, and typically defines how repairs will be performed. Covered household components include the following, with different components that have 1 or 2 years of coverage.
For new homeowners, it's common to confuse a home guarantee with a construction guarantee, but it's important to understand the difference. Structural damage as a result of natural disasters, such as a tornado or hurricane, is not covered by a homebuilder's warranty. ABCHWA is the guarantor under this limited warranty and will honor the Builder's obligations to the Homeowner (s) for covered deficiencies if ABCHWA has established that the Builder is unable or unwilling to comply with the warranties, conditions and standards set forth herein. While there are differences in new home warranties from one builder to another, in general, warranties should cover all materials and workmanship in the home, except when items are covered by a component manufacturer.
If you're thinking about buying a newly built home, it's important that you know the difference between a builder's home warranty and a standard new home warranty. Protection, such as new home warranty coverage added to homeowners insurance and the residual benefit of a builder's guarantee, gives homeowners the convenience of knowing they're prepared to manage what needs to be done. Some defects in the home are difficult to detect, so it's worth keeping track of the upcoming due dates, then it's worth paying a professional to tell you what the builder needs to fix. Builder warranties for newly built homes generally offer limited labor and material coverage for specific components of the home, such as windows, heating, ventilation and air conditioning (HVAC), plumbing, and electrical systems.
If you received a warranty from the builder on your home, read it to determine its duration, who is supposed to handle the issues (the builder may have purchased third-party insurance), and what is covered and excluded. When building a new house and signing a contract for a guarantee for builders, it is always a good idea to read the fine print to understand exactly what is covered and what is not, and for how long it is covered. Faults that are not covered by the builder's warranty can be costly to repair, and new homeowners often haven't had the opportunity to rebuild their savings after their home purchase. Each state has different warranty requirements for homebuilders, some of them laws and others based on case law, so it's best to check with your state's Attorney General's Office.
Buying a newly built home can be stressful, but a builder's warranty alleviates some of the worry about a costly structural problem. A builder's warranty for a new home won't necessarily cover what you expect it to cover, and even the best homeowners insurance companies only cover damage to the home, not appliance or structural failures.
