BUILDER’S WARRANTIES
Warranties for newly built homes generally offer limited coverage on workmanship and materials relating to various components of the home, such as windows, heating, ventilation and air conditioning (HVAC), plumbing, and electrical systems for specific periods. These builder’s warranties also typically define how repairs will be made.
Check to see what’s covered
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. For example, most warranties on new construction cover siding and stucco, doors and trim, and drywall and paint during the first year. Coverage for HVAC, plumbing, and electrical systems is generally two years. Some builders provide coverage for up to 10 years for “major structural defects,” sometimes defined as problems that make a home unsafe and put the owner in danger. For example, a roof that could collapse is a “major structural defect.”
Most warranties for newly built homes, however, do not cover expenses an owner may incur as a consequence of a major construction defect or warranty repair, like the cost of having to move out of one’s home while repairs are being made.
Builder’s warranties usually don’t cover:
- Household appliances
- Small cracks in brick, tile, cement or drywall
- Components covered under a manufacturer’s warranty.
Learn more about builder’s warranties
To learn more about warranties on newly built homes, contact your state or local builders’ board. If you have a loan insured by FHA, contact the closest U.S. Department of Housing and Urban Development field office for more information, or visit www.hud.gov. If you have a VA loan, you can contact the nearest VA office, or visit www.homeloans.va.gov.
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