Things can go wrong even when you build new homes. This is why most buyers of newly constructed homes are interested in the builder’s warranty. This serves as a promise and agreement to repair and replace some elements in the home if something goes wrong about it. There are warranties that are backed by the builder while some are purchased by the builders from many independent companies that assume responsibility for certain specific claims. There are other instances when the homeowner purchases coverage from a third-party warranty firm to supplement the coverage from the builder. For you to know that such warranties will work for you, you have to determine what it covers, what is excluded from coverage, how to make a claim, and the process of dispute resolution.
Most builder warranties cover both material as well as workmanship on a new home for one to two years. It is a coverage that can last as long as ten years on the major structural elements. There are third-party warranties that can be bought from independent firms. They ensure that when the builder can’t or won’t cover the work under warranty, the third-party company will shoulder it.
State and Builder’s Warranties
There are some states that are more stringent on the implementation of builder warranties. It’s wise for you to check with the state’s Attorney General Office or the contractor licensing board. This will make sure that all builders will offer builder’s warranties according to the state law.
There are states that are creating or have already implemented laws that extend the coverage of the warranty from the typical one year to two years on both material and workmanship. More time, about four years or more, is even allotted for major defects in electrical and plumbing systems and HVAC. Up to ten years is given to structural defects and problems involving water penetration. You may also check on the Magnuson-Moss Warranty Act which is a federal law to protect the consumers from any misuse in warranties and also to make such warranties easier to understand.
There are several reasons for a new home to have builder’s warranty. The following are the best ones according to Forbes:
It protects you against a lot of problems.
It may be that your home passed inspection and it has been deemed fit for occupancy, but this does not guarantee you freedom from problems. There are typical problems to a new home
Problems may not be obvious upon moving.
It’s only natural to notice some odd things in your new home when you have lived in it for a while. Structural issues don’t show up after work is done and the house I lived in for a while. It will be difficult for you to ask the builder to make changes on their work without Builders Warranty Insurance Australia.
It is crucial to read the warranty and to be sure of the builder’s obligations, the maintenance responsibilities you need to comply, and the coverage of the warranty for both the structural work and the materials used.