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New Construction Home Warranty

A new construction home warranty is frequently part of an purchase agreement between a home builder and the buyer, though in some infrequent cases it is purchased solely by the buyer. As part of a new construction home warranty, the home buyer has the right to call a repair company at minimal cost to themselves within a certain period of time after the closing on the house is completed--normally three to five years.

A new construction home warranty provides the buyer with coverage for most of the house, both interior and exterior, if something fails during the warranty period. If there is a structural problem or anything inside the house fails, the buyer may call the builder or the home warranty company responsible for servicing the property, depending on the agreement. If the call is made to a new construction home warranty company, that company will then call a contractor with which they have a business agreement. That company will send employees to the house to check out the problem; once the cause is diagnosed, the problem will either be repaired of the faulty item replaced. The home owner will be charged a minimum amount, if anything.

Anything that fails on the exterior of the home is normally covered by a new home construction warranty, as are most items on the inside. Problems with air conditioning and heating systems, plumbing, electrical systems, telephone, television or Internet wiring, trash compactors, furnaces and water heaters are all covered. If ovens, ranges and dishwashing machines were installed by the builder, they are also covered by the new home construction warranty.

Most outdoor items, like sprinkler systems or swimming pools, are not covered by new construction home warranties. Items brought into the house by the new owner, such as refrigerators, are also not covered, though electrical problems that cause the refrigerator not to work would be. The warranty company can deny any claims that are caused by previous improper maintenance by the home owner, any code violations, improper installation (by the owner) or unusual wear and tear.

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