Home Builder Warranty: What It Covers and What Buyers Should Know

Buying a newly built home doesn’t mean everything will be perfect. Even new construction can have issues, from plumbing leaks to doors that don’t close properly. A home builder warranty may cover certain defects, but coverage depends on the terms of your agreement.

Whether you’re buying a new home in Phoenix, AZ or comparing a new construction condo in Tampa, FL, here’s what experts say about builder warranties and what to check before closing.

Key takeaways

• Builder warranties may cover defects in workmanship, materials, systems, and structural components.
• Coverage periods and exclusions vary by builder and warranty agreement.
• Buyers should review claim procedures, deadlines, and inspection options before closing.
• A builder warranty isn’t a substitute for an inspection. An independent inspection can help identify potential issues before closing or before applicable warranty deadlines. 

What does a home builder warranty cover?

A home builder warranty is a limited agreement that may cover certain construction defects for a specified period. Depending on the contract, coverage can include:

• Workmanship and materials: Certain defects involving doors, windows, roofing, and other installed components.
• Major systems: Covered issues with plumbing, electrical, heating, and cooling systems.
• Structural components: Certain defects involving foundations and other load-bearing elements.

Rob Rogers, a partner at construction litigation firm Kirwin Norris, P.A., explains that some builder warranty periods range from six months to two years. Longer coverage may apply to certain structural defects.

For example, the FTC notes that many new-home warranties provide about one year of coverage for workmanship and materials, two years for certain systems, and potentially longer coverage for major structural defects. Always check the specific warranty for the home you’re considering to understand what’s covered and for how long.

The exact terms vary, so check your written warranty to understand which components are covered and for how long.

EXPERT TIP: Don’t Assume longer coverage applies to everything.

“A builder warranty typically provides limited coverage for defects in workmanship and materials, with separate coverage periods for certain systems and major structural defects,” says Shannon Miles, New Construction Specialist with Shannon Miles Group at Build Your Way Home.

Builder warranty vs. home warranty: What’s the difference?

Although the terms sound similar, a builder warranty and a home warranty serve different purposes.

• Builder warranty: Typically covers certain construction defects involving workmanship, materials, and structural components in a newly built home. Coverage varies by contract and may last for different periods depending on the issue.
• Home warranty: Usually refers to an optional service contract that helps cover repairs or replacements for certain household systems and appliances, such as HVAC equipment, plumbing, and kitchen appliances, when they break down under covered circumstances.

The main difference is the type of coverage each provides. A builder warranty generally comes with a newly built home and covers certain repairs or replacements for household systems and appliances. A new home may have both, along with separate manufacturer warranties for individual products. 

What doesn’t a builder warranty cover?

Builder warranties generally don’t cover every issue that develops after closing. Common exclusions may include:

• Routine maintenance and normal wear
• Weather-related or pest damage
• Damage caused by improper maintenance
• Certain minor cosmetic changes
• Defective work completed by homeowners after construction
• Items covered by separate manufacturer warranties
• Certain minor cracks or cosmetic imperfections

Household appliances may also have separate manufacturer warranties rather than coverage through the builder.

EXPERT TIP: Understand the exclusions before buying.

“Builder warranties typically exclude certain homeowner-caused problems, appliances, and weather-related damage”, explains Rob Rogers of Kirwin Norris, P.A. He recommends reviewing the warranty’s coverage limits, reporting requirements, and dispute-resolution procedures before closing.

What should you check before signing?

Before purchasing new construction, request a copy of the written warranty and review these details:

• Coverage: What’s included, and which problems are excluded?
• Duration: When does coverage begin and expire for each component?
• Claims: How and when must you report a problem?
• Disputes: What happens if the builder denies a claim?

Warranty rights can also vary by state. Depending on where you live, state law may provide additional protections or requirements beyond what’s included in the builder’s warranty. If you have questions about your rights or terms of the agreement, consider consulting a real estate attorney familiar with your state’s laws.

How to file a builder warranty claim

If you notice a potential defect after moving in, start by checking the warranty’s reporting instructions.

Miles recommends taking photos, following the required notification process, and keeping proof that you submitted the claim before the deadline.

A few steps can help you stay organized:

• Photograph the issue and record when you noticed it.
• Submit the claim through the builder’s required process and keep proof that it was received.
• Save emails, receipts, and other correspondence.
• Keep track of deadlines and scheduled repairs.

Should you get a new construction home inspection?

New construction may go through required code inspections during the building process, but a buyer-hired inspector provides a separate review of the home on the buyer’s behalf. .

Miles recommends a home inspection before closing and another before the first-year workmanship coverage expires. This gives buyers an opportunity to document concerns while coverage may still be available.

If your workmanship warranty lasts one year, consider scheduling the second inspection around months 10 or 11, leaving time to report any issues before the deadline.

>> Learn: Pros and Cons of New Construction Homes

Understanding your home builder warranty

A home builder warranty can provide coverage for certain construction defects, but it’s important to understand its limits. Before closing, review the terms, keep your documents organized, and make sure you know how to report problems.

Knowing what your warranty covers and when it expires can help you navigate the process if an issue comes up after moving in.