There are many advantages to owning a home. Aside from bringing a sense of stability to your life, homeownership also provides you with financial benefits, particularly when tax season arrives. However, owning a home can also give you some stress, especially in keeping it functional.

The repairs and replacements when home fixtures and components get damaged can be expensive. Afraid of breaking a big chunk off their budget, many homeowners purchase builder warranties to cover the costs of maintenance and repairs of their properties. 

Would you like to know about builder warranties, how they work, and what are the things they cover? You are in the right place at the right time because we have an article for you to read. 

Builder Warranty: Defined

A builder warranty is a protection in case your newly built home has any defect in materials or workmanship. It is an agreement entered into between you and your home builder. It is not hard to understand builder warranties if you are familiar with warranties on personal gadgets or home appliances. They kind of work the same.

A builder warranty is not the same as home insurance. The former covers defects in building materials or damages due to inferior workmanship (i.e., the blame is on the homebuilder); while the latter generally covers damages arising from human actions or natural disasters. 

What Do Builder Warranties Cover?

A builder warranty is not only limited to one item but covers almost the entire structure and major systems (e.g., mechanical, electrical, and plumbing systems) in a newly built home. Here are the typical items covered by a builder warranty. 

Structural Components of a House

Safety is vital in a building, and it is often compromised when there is a structural defect. If there is any physical damage to the load-bearing component of a house, it is considered a structural defect affecting its load-bearing functions. Physical damage arising from self-caused destruction, vandalism, or natural disasters is not covered in builder warranties. 

Builder warranties cover damage or defect in lintels, columns, masonry arches, beams and girders, load-bearing walls, and foundations. Damage to the floors, basement slabs, roof framing systems, and roof sheathing are also included in the warranty. 

The exterior siding, drywall and plaster, tiles, and roof shingles are typically not included in a builder warranty because they do not have load-bearing functions. 

Foundation

Damage to the foundation, such as cracks, can undermine the safety of your home if not addressed immediately. Typically, a builder warranty will cover repairs if your home’s foundation has cracks bigger than a quarter of an inch wide. 

If water leaks into the basement due to cracks in the foundation, a builder warranty will also cover the repair. Cracks in the garage floor or basement will also be included in the builder warranty. 

Grounds

Grounds surrounding the home without proper drainage are covered in a builder warranty. It will also include any damage to the landscaped areas due to work by the builder’s crew. 

Electrical System

The builder warranty covers problems with your electrical system. The builder will repair or replace electrical equipment, switches, or wiring that is not functioning. 

Heating and Cooling System

Living in a home without a proper heating and cooling system can be difficult. Maintaining a comfortable temperature inside your house can even be a health matter. Therefore, it is crucial to repair or replace a faulty or malfunctioning heating and cooling system as fast as possible. 

Typically, there is a two-year period within which a homebuilder will cover the repair or replacement of a heating and cooling system. Conducting minor adjustments or balancing dampers will not be included in the warranty. 

Plumbing System

If the pipes of your plumbing system are damaged, a builder warranty will cover the repair of the plumbing system. Burst and frozen pipes are included in the warranty, as well as any leakage from pipes. 

The builder will also shoulder the repair if the water system does not deliver water. Moreover, if the builder causes the sewer or water pipes to get clogged due to negligence, the cost to repair the damage will be covered by the builder.

How Much is the Cost of a Builder Warranty?

A builder warranty is not that expensive. Typically, it will only cost below one percent of the cost of a newly constructed house. The affordability and benefits of a builder warranty make it an excellent investment. 

Final Thoughts

It is up to you whether you buy a builder warranty or not. But it cannot be denied that it provides real benefits to homeowners at a low cost. If your newly built home has damage or defect, you will be free from spending money out of your pocket for repairs or replacements. The builder warranty will cover that for you.