Dear Kenneth: There are definite differences between warranties on new homes and those on existing homes. And it’s important for a homeowner to understand what’s covered, so there’s no surprise if a claim is denied.
Most builders will provide a warranty on a newly built house. Typically, homeowners receive a one-year warranty covering workmanship and materials, which include siding, stucco, doors, trim, drywall and paint. Coverage for plumbing, HVAC, and electrical systems is generally two years. Some builders offer up to a 10-year structural warranty, covering problems that could make the home unsafe, such as a roof that might collapse. Appliances aren’t covered by a builders’ warranty, as presumably they come with their own warranty options.
The builder could offer the warranty directly or sometimes will pay a third-party warranty company to handle the coverage. The Federal Housing Authority and the Department of Veterans Affairs require builders to buy a third-party warranty as a way to protect buyers of newly built homes bought with FHA or VA loans.