Quick Answer
A builder warranty covers defects in workmanship and materials on a new home, typically with shorter coverage on general items and longer coverage on major structural components. It is different from a home warranty service contract, which is a separately purchased plan covering appliances and systems.
- Covers
- Workmanship and certain building systems
- Common structure
- Shorter general coverage, longer structural coverage
- Provided by
- The builder, as part of your purchase
- Different from
- A purchased home warranty service contract
How Builder Warranty Coverage Is Typically Structured
Most builder warranties are tiered, with a shorter period, often around a year, covering general workmanship and minor systems, and a much longer period covering major structural components. This tiered approach is common across the industry and is sometimes referred to informally as a 1-2-10 style warranty, though exact terms vary by builder.
Items caught during your punch list walk-through are usually addressed quickly under this warranty, while issues that surface later, like a settling foundation, fall under the longer structural coverage.
Builder Warranty vs. Home Warranty
A builder warranty comes from the company that built your home and is included in the purchase. A home warranty is a separate, optional service contract, often purchased annually, that covers repair or replacement of appliances and systems regardless of who built the home.
New-construction buyers sometimes carry both: the builder warranty for construction defects, and a home warranty for ongoing appliance and system coverage once the builder's coverage narrows over time.
Questions About Your Situation?
We'll walk you through it in plain English — no pressure, no obligation.
Frequently Asked Questions — Builder warranty
What does a builder warranty typically exclude?
Normal wear and tear, damage from buyer neglect, and cosmetic issues not noted at your walk-through are commonly excluded. Read your specific warranty document for exact terms.
Is the builder warranty transferable if I sell my home?
Many are transferable to a subsequent buyer for the remainder of the term, which can be a selling point, but this depends on the individual builder's warranty terms.
Do I need a home inspection if I have a builder warranty?
Yes. An inspection can catch issues early, before they grow, and having documentation helps if you need to file a warranty claim later.
What should I do if the builder is slow to respond to a warranty claim?
Put your request in writing with dates and details, and keep copies of all correspondence. If a builder is unresponsive, your agent can often help you determine next steps.