Property owners need to evaluate conditions that could increase risks to the new construction. When buying a brand-new home, the buyer needs a builder’s warranty to cover specific elements of the construction. It is not a home warranty, and the buyers need the warranty to get coverage when buying a home that no one has ever lived in.
The warranties provide help when the property fails to meet building codes during the term of the warranty. It gives the property buyer a guarantee that the property won’t have any issues for the full duration of the warranty. If an issue arises, the owner can use the warranty to get repairs for their home.
What Can Homeowners Expect from a Builders Warranty for Their Home
The warranties cover a new construction and prevent the property owner from facing excessive costs because the builder failed them. All builders have an obligation to the buyer to construct a structurally sound property without any issues.
The property must meet all building codes and regulations as defined by the federal and state laws. The warranty guarantees that the property owner will not discover any defects or imperfections for the full term of the warranty. Property buyers can get builders warranty from 2-10 HBW right now.
How Long Do the Warranties Last?
Builder warranties last up to ten years after the property was constructed. The property buyer purchases the warranty to protect their interest and avoid a financial loss if the builder doesn’t fulfill their contractual obligations. The warranty doesn’t require additional premiums to maintain the coverage, and the premiums could be as much as $100,000 depending on the square footage of the property and its value.
What Is Covered Under the Warranties?
The builder warranties cover structural elements of the property. According to the terms of these warranties, the coverage applies to girders, footing, columns, masonry, walls, partition, roof framing systems, and the floor systems. The buyer can get coverage for the foundation, doors, windows, carpentry, electrical installations, plumbing, septic system, and waterproofing.
Do the Building Supplies Affect the Warranty?
Yes, some building supplies could affect the warranty, and the builder must use products that meet the terms of the builder warranty. Limitations are imposed on any structures that were constructed with supplies that do not meet the specifications. This applies to glass used in windows and doors, the landscaping products, the materials for the roofing design, and the septic tank brand.
The warranty company reserves the right to complete inspections of the materials used for the property, and if the building materials do not meet their specifications the warranty company may require changes. It is vital for the builder to review the terms of the builder warranty to avoid using building materials that could violate the terms of the warranty and decrease coverage.
What Isn’t Covered Under the Warranty?
The warranty provides coverage for structural elements of the property, and there are several issues that are not covered under a builder warranty. Coverage is not extended to any structural changes performed by the homeowner, shrinkage or expansion in the joints, or any damage caused by pests.
If the weather causes property damage, the homeowner won’t get coverage under the warranty. Any structural failures caused by condensation are not covered under the builder warranty.
Is A Builder Warranty the Same as a Home Warranty?
No, a builder warranty applies to structural attributes of the property, and it doesn’t cover the same installations as a home warranty. A home warranty covers appliances, electrical systems, HVAC services, and plumbing. The property owner can also apply the home warranty to a pool house or guest home. They can also add swimming pools or other exterior installations such as a garage to the warranty.
A builder warranty provides protection for a brand-new home only. It can help the property owner if structural issues emerge. The home warranty gives them discounts for repairs and replacement services for vital systems in the property.
Does the Property Owner Need an Inspection?
When getting the warranty, the property owner gets inspections through the building code inspector at different phases of the construction project. The entire property is inspected before the property closing. If there are any defects or imperfections, the buyer is informed, and the builder must correct the issues before the property owner moves into the property.
This is the protection that the property owner gets through the warranty. It is important to purchase the warranty and protect the buyer’s interest and avoid serious financial losses because of defects or severe structural issues.
Does It Eliminate the Need for Homeowner’s Insurance?
No, the property owner must purchase homeowner’s insurance as a term of their mortgage contract. They must have homeowner’s insurance to cover the property against property damage caused by covered events. It provides funds if the property is damaged, and the property owner uses the funds to complete structural repairs. The homeowner’s insurance policy provides coverage for conditions that are not covered by the builder warranty.
If the property is in a flood zone, they must purchase a flood insurance policy to protect the property and offer more comprehensive coverage. It will provide help for the property owner, and the builder warranty doesn’t apply to weather-related damage, and it won’t cover issues caused by a flood.
Property owners get warranties to protect them against financial losses. When investing in a brand-new property, the buyer needs a builders warranty to cover structural issues that could lead to serious property damage. It can also prevent builders from using inferior building materials when building a home.
The warranties offer inspections for the property to ensure that the property is structurally sound and won’t present an issue for the property owner. However, the owner must review several options that could lead to limitations. A complete review of the benefits of the warranties educates the property owner about the full protection they receive.