Why do you need a home warranty for new construction?

Building a new home is one of the most expensive investments you will ever make. A new construction places their life savings on the line for many people. Therefore, it is important to find ways to protect this investment. One important way to protect your new home is through the new home warranty. A new home warranty can be taken for many reasons and provides many benefits. Here, the article will focus on builder warranties in detail, including:

What Are Builder Warranties?

Simply put, a builder warranty is a warranty on new construction. When you are hiring a contractor to build your new home, they are required legally, in many states, to offer a builders’ warranty. It is important to note that builders’ warranty on new homes is not as comprehensive as home warranties purchased separately. However, they still offer a great cover for many important components of your house.

Quality Issues

Building a new home is like creating a new product from scratch. Even if everything is done right, there is no guarantee that there won’t be any bugs or errors. In other words, while the final inspection pass before getting the house may deem the house fit for living, many problems may remain. Builder warranties help to cover these issues:

  • Defective material usage can be a huge concern. Many homeowners are not trained to determine if the material used is effective enough. It is only after the home starts being used regularly that such issues emerge.
  • Fixtures and fittings can crack or face problems during initial use. These problems can be covered through the builder’s warranty.
  • Landscaping issues, electrical/ plumbing problems, or floor layout issues can also be covered in certain types of builder warranties.

Problems May Emerge with Time

Even a well-trained and skilled inspector may end up missing out on the underlying problems with new construction at first glance. Therefore, problems may emerge from time to time that may require coverage. Therefore, many builder warranties cover such common problems that can emerge in new constructions. First, the code violations must be considered, along with any permit fees incurred. Pre-existing conditions may not be determined correctly, and any defective equipment may have to be removed from the site as well.

In new constructions, you need to also consider how the home ages during the first year. Covering these issues can help gain better safety financially.

Overbooked Builders

Remember, builders in high demand may have to cut some corners to get the work done on time. In other words, they may lack attention to detail or miss out on certain important steps. For this purpose, you need to ensure that a builder’s warranty secures your investment. If you notice some area where the builder has done poorly, get it fixed with the warranty coverage. This way, you can save considerable sums and avoid breaking your bank on solving issues with a newly constructed house.

Builder Warranty Issues

Many people must consider getting a home warranty on top of the builder warranty for various reasons. First, the builder may be relieved of most warranty obligations once the final inspection is completed. Secondly, the builder warranties are not comprehensive and fail to cover most aspects. For example, most builder warranties come in different packages:

  • The one-year warranty package is only on the materials and labor, without covering any appliances or systems of the house.
  • The two-year builder warranty focuses on your electrical, A/C, plumbing, and heating system alone, without covering any other aspect of the house.
  • The 10–20-year warranty can cover foundations and structural elements. However, they still don’t cover internal systems and appliances.

Therefore, it can be a huge issue when considering ways to cover the house. The best option is to get a home warranty for new construction. This warranty will help cover the systems of your home as well. Therefore, if any appliances break down, you can have them replaced without taking further financial burden after already paying for the new construction.

Other Things to Consider

Some contractors or builders may offer customized home warranties for the first few years. Try communicating with them before opting for third-party services. This way, you will have better coverage by the same people who have conducted the initial installation. Plus, they can offer you comprehensive coverage for suitable rates. A major issue is whether the builder can provide continuing services. If not, a third-party provider is the better option.


When building a new home, consider getting a home warranty for the construction to save your investment and protect yourself from serious financial losses. Consider the factors mentioned above for the best choice.

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