Builder Warranties Exposed: What New Construction Contracts Won’t Cover
Welcome to the world of new construction. It’s an exciting time, full of potential and possibilities. From choosing the perfect plot of land to selecting your dream house design, there are countless decisions to be made. And while most buyers understand the importance of carefully reviewing builder warranties before signing on the dotted line, many may not realize the limitations and exclusions included within these contracts. In this article, we’ll expose the truth about what new construction contracts won’t cover, so you can enter into your build with full knowledge and confidence.
What is a Builder Warranty?
A builder warranty is a contract between the buyer and the builder that outlines the responsibilities of each party during the construction process. It typically includes a promise to repair or replace any defects in the home within a certain time frame after completion. The duration of builder warranties can vary, but they generally cover a range of issues such as structural defects, electrical and plumbing problems, and mechanical malfunctions.
But along with this promise of protection, there are often clauses and exclusions that limit the coverage provided by builder warranties. Let’s take a closer look at what these contracts won’t cover.
1. Normal Wear and Tear
One of the most common exclusions in builder warranties is for normal wear and tear. As homeowners, we understand that things like paint, flooring, and appliances will eventually need to be replaced over time. However, builder warranties typically do not cover these types of repairs and replacements. This means that even if your newly built home starts showing signs of wear after a few years, you’ll be responsible for the costs.
Solution: Request a Detailed Warranty
Before signing the contract, it’s important to request a detailed warranty that outlines what is and isn’t covered. Make sure to read through it carefully and ask questions if anything is unclear. Some builders may be willing to add additional coverage for certain items, so don’t be afraid to negotiate.
2. Non-Structural Issues
Another key exclusion in builder warranties is for non-structural issues. This means that any cosmetic defects, such as cracks in the drywall or uneven tile, would not be covered. While these may seem like minor issues, they can add up and become costly to repair.
Solution: Conduct Independent Inspections
To avoid any surprises after moving into your new home, it’s important to conduct independent inspections throughout the construction process. This will allow you to catch any issues early on and have them addressed by the builder before it’s too late. You may also want to consider hiring a third-party inspector to conduct a final walkthrough before closing on the home.
3. Acts of Nature
Acts of nature, such as floods, earthquakes, and hurricanes, are typically not covered by builder warranties. While these may be rare occurrences, they can result in significant damage to your home. If you live in an area prone to natural disasters, it’s important to discuss this with your builder and ensure you have the proper insurance coverage in place.
Solution: Consider Additional Insurance
While your builder warranty may not cover acts of nature, you can protect yourself by purchasing additional insurance. This can provide peace of mind and financial security in the event of a natural disaster.
4. Improper Maintenance
Builder warranties also often exclude any issues that arise due to improper maintenance. This means that if you fail to properly care for your home, the builder will not be responsible for any repairs or replacements. While it may seem unfair, it’s important to note that as a homeowner, you have a responsibility to maintain your property.
Solution: Keep Up with Regular Maintenance Schedule
To avoid any issues with your builder warranty, be sure to keep up with the recommended maintenance schedule for your home. This includes things like changing air filters, cleaning gutters, and having your HVAC system serviced regularly.
In Conclusion
While builder warranties may seem like a guaranteed safety net, it’s important to understand the limitations and exclusions included in these contracts. By knowing what is and isn’t covered, you can make more informed decisions when purchasing a new construction home. Remember to carefully review your warranty and ask questions if anything is unclear. And most importantly, conduct regular inspections and proper maintenance to keep your new home in top condition.
