Home Warranties for New Construction

Buying a newly built home comes with a sense of security. Everything is new, and the builder usually provides a warranty. But a builder warranty and a home warranty are not the same thing, and knowing the difference can help you decide whether you need extra coverage and when.

What a builder warranty usually covers

Most builders provide a written warranty, though the terms vary by builder and state. A common structure looks like this:

• Workmanship and materials: Often covers items like drywall, trim, paint, and doors for a short period, commonly around the first year.
• Systems: Plumbing, electrical, and HVAC distribution systems for a somewhat longer period, often around two years.
• Major structural defects: Load-bearing parts of the home for a longer period, often up to around ten years.

Some builders back these warranties themselves. Others use a third-party warranty company. Read your builder's documents carefully, since the exact terms are what count. Pay attention to how you must report problems, since many builder warranties require written notice within the coverage period.

What builder warranties often leave out

Builder warranties focus on how the home was built. They generally don't cover normal breakdowns of appliances and equipment that occur from use. Common gaps include:

• Appliances. Refrigerators, ranges, dishwashers, and washers are usually covered by their own manufacturer warranties instead.
• HVAC equipment failures after manufacturer coverage ends or when a part fails from normal use rather than from installation
• Water heaters after their manufacturer warranty terms
• Items you added, such as a second refrigerator or a pool installed later

Manufacturer warranties on new equipment

New appliances and systems come with their own manufacturer warranties. These usually cover parts for a set period, sometimes with shorter labor coverage. Keep in mind:

1. Some manufacturer warranties require registration.
2. Labor may be covered for a shorter time than parts, or not at all.
3. You may need to arrange and schedule the repair yourself with an authorized technician.

Register appliances as soon as you move in, and keep the paperwork in one folder.

Where a home warranty fits

A home warranty is a service contract that covers repair or replacement of home systems and appliances that break down from normal use. In a new home, it can:

• Fill labor gaps when a manufacturer warranty covers parts only
• Give you one number to call for many different items
• Cover items that fall outside builder and manufacturer coverage

Because many items in a new home are already covered, some owners wait to buy a home warranty until builder and manufacturer coverage starts to expire, often around the one or two year mark. Others buy right away for the convenience of one point of contact. Compare what you already have before deciding.

Timing your coverage

A simple approach:

1. List every system and appliance with its warranty end date.
2. Note which ones cover labor and which cover parts only.
3. Mark the date your builder's systems coverage ends.
4. Shop for a home warranty a couple of months before the biggest gaps open.

Also note that some home warranties have a waiting period before coverage begins, so buying a little early can help you avoid a gap.

Other tips for new homeowners

• Do a walkthrough before your builder's first-year warranty ends and submit a list of issues in writing.
• Keep the builder's contact information and claims process handy.
• Change HVAC filters on schedule. Manufacturer and home warranties both often require proper maintenance.
• Learn where your main water shutoff and electrical panel are.
• Keep a list of the companies that installed your HVAC, water heater, and appliances. Some manufacturer warranties require service by an authorized technician.
• Watch for settling cracks, sticking doors, and drainage problems in the first year, and report them to the builder in writing.

Our pages on heating coverage and appliance and system coverage show what home warranty plans commonly include.

How Warranty Wizards can help

We help new homeowners compare home warranty plans from independent third-party providers and see how they fit alongside builder and manufacturer coverage. We'll explain what a plan covers before you buy. Request a free quote at /get-a-quote/.