What’s the difference between a home builder’s warranty and a home warranty? 

If you’re thinking of buying a newly constructed home, it’s important to know the difference between a builder’s home warranty and a standard new home warranty. 

A builder’s home warranty applies to new home construction or a remodel that is completed by a builder, who, in this case, pays for the home warranty. Unlike a home warranty, which is purchased by the homeowner and covers essential appliances and systems in your home, a house builder’s warranty on a new home is provided by the builder or from a third-party provider. It accounts for any issues with materials, central in-home systems that were installed by the construction team, or other structural elements.

Both warranties are different from homeowners insurance, a separate policy that most homeowners are required to purchase when they buy a house. It provides coverage for things that might happen, like floods, fire, theft, and more. Learn more about the differences between home warranty and insurance in our Home Insurance vs. Home Warranty blog post.

What is the builder’s warranty period?

A builder’s warranty on new homes offers limited coverage on the materials and workmanship for a specific amount of time. The length of the warranty will depend on what features your home has. 

For example, a one-year builder’s warranty for new construction will often cover workmanship and materials. A two-year warranty will most likely cover HVAC, electrical, and plumbing. On average, builder’s warranties will last between six months and two years.

Will a builder’s home warranty cover structural damage?

Some builder’s warranties may offer up to 10 years of coverage for any major structural defects that occur during that time frame. Structural warranties cover defects that are considered to be damages to the home that make it unsafe to live in. 

A warranty will differ from builder to builder, so it’s important to know what it will cover and what it won’t before signing a contract. 

What is covered in a builder’s warranty?

Negotiating a home builder’s warranty can be a lengthy process. A builder wants to limit their responsibility more times than not, so it’s up to you to ensure your home has as much coverage as possible. Before signing a contract, be sure to ask your builder the following questions:

• What isn’t covered by the warranty?
  
• Do you have any references from previous projects?
  
• How long does your warranty last?
  
• What is the process for submitting a claim?
  

A builder’s warranty on new homes will typically include limited coverage on any supplies used to build your home and items they constructed. These will often include:

• Carpentry
  
• Concrete foundations and floors
  
• Doors and windows
  
• Dry basement
  
• Electrical
  
• Garage doors
  
• Glass
  
• Heating and cooling
  
• Insulation
  
• Landscaping
  
• Plumbing
  
• Roofing
  
• Septic system
  
• Shingles
  
• Thermal and moisture cover
  
• Waterproofing