Building and buying a new home is a huge investment that thousands of people make each year. In fact, 632,000 new construction homes were sold in 2022 alone! One of the most attractive perks of buying new is not having to worry about the inconvenience and added expense of items inside the home breaking down.
Each new construction home comes with a builder warranty that protects you if something stops working. However, not everything is covered under this warranty, which can sometimes lead to confusion. Let’s take a look at builder warranties and what they do and don’t cover.
What is a Builder Warranty For a New Construction Home?
The Federal Trade Commission (FTC) has a great, straightforward definition of a builder warranty. They state, “A builder warranty comes with new home construction or a remodel. It covers items that are typically a permanent part of the home, like concrete floors, plumbing, or electrical work. Most newly built homes come with a builder warranty.”
A builder warranty is not the same as a home warranty. Home warranties can be purchased for existing homes or through a residential resale home sale. Home warranties will only cover some repairs and replacements for systems that fail due to regular wear and tear. Once your builder warranty expires, it may be a good idea to look into a home warranty to help you out down the road.
Specific to our Evergreen State, “Washington law imposes an implied warranty of habitability on new home builders. The warranty generally exists between the home builder-vendor and the original purchaser of a new home.”
Curious about Washington State’s specific regulations? That’s what we’re here for! Drop us a line here.
What IS Covered In a Builder Warranty?
A builder warranty covers many items within the home, but not all. These are the items that are protected under a builder warranty:
- Major structural defects — this includes defects related to load-bearing walls, roof framing, and the home’s foundation.
- Home systems — major systems within the home, like the HVAC, plumbing, and electrical system, are covered.
- Exterior items — Items like siding, windows, and garage doors.
- Interior items — flooring, doors, trim work, and insulation.
- Workmanship — If defects were caused due to poor workmanship, like improper installation, they might be covered along with any damage that was caused as a result of the poor workmanship.
What is NOT Covered By a Builder Warranty?
Since builder warranties are primarily issued to protect the homebuyer from faulty workmanship by the builder or defective items, builder warranties only last for a set period. Once that time has expired, the homeowner is responsible for all repairs. This means that damage caused by natural disasters is not covered, although you may be able to have your homeowner’s insurance help you.
If items are damaged by outside contractors or due to either neglect or misuse by the homeowner, they will be excluded from coverage. Lastly, appliances are not covered by a builder warranty. However, each major appliance in your home comes with a manufacturer’s warranty. If an appliance breaks, make sure to contact the manufacturer to see how to move forward with repairs or replacement.
Are you ready to take the leap? New Construction Market Experts will guide you through the process of finding, financing, and securing new construction through a personalized, buyer-centric process. We are your direct source for every new construction project in SW Washington and the resources you need to secure your dream home seamlessly! Browse the interactive map and reach out today — your new home awaits!
