Posted on Sept 23, 2025

A builder's warranty is a critical protection for anyone buying a new-construction home, but it's important to understand the details. Unlike a general home warranty, which you purchase to cover appliance breakdowns from normal wear and tear, a builder's warranty specifically covers defects in the home's original workmanship and materials.

Here's what every new homeowner needs to know.

The 1-2-10 rule: What's typically covered

While the specific terms can vary, many builder warranties follow a standard coverage structure, often called the "1-2-10" rule.

• One year: Workmanship and materialsThis initial period generally covers problems with the quality of the builder's work and the materials they used.
  Items covered often include siding, doors, windows, drywall, and paint.
  
• Two years: Systems coverageThis covers the home's essential internal systems.
  Commonly protected items include electrical, plumbing, and HVAC systems.
  
• Ten years: Major structural defectsThis is the longest and most significant part of the warranty, covering a home's major structural components.
  Coverage can include defects in the foundation, load-bearing walls, and roof framing that make the home unsafe.
  

What is usually not covered?

While a builder's warranty offers broad protection, it doesn't cover everything. Here are some typical exclusions:

• Normal wear and tear: Scratches on walls or worn-out finishes that happen with everyday use are not covered.
• Household appliances: Your new refrigerator, stove, and dishwasher are covered by their own separate manufacturer's warranties, not the builder.
• Minor cosmetic issues: Small drywall cracks or nail pops caused by the house settling are usually considered minor and are not covered.
• External factors: Damage from weather events, natural disasters, or pests is typically not included.
• Owner neglect or improper maintenance: If an issue results from poor upkeep or unauthorized repairs by the homeowner, the warranty may be voided.

How to make a successful warranty claim

For a new homeowner, knowing the right steps to take is crucial for getting issues resolved efficiently.

1. Conduct a "punch list" walkthrough.
   Before closing on the home, perform a thorough inspection with your builder. Document all deficiencies, no matter how small, and get confirmation that the builder will address them. This ensures issues are on record from day one.
2. Act quickly and document everything.
   As soon as you discover a potential issue covered by the warranty, submit a claim in writing to the builder or the third-party warranty provider. Keep a detailed record of all correspondence, including emails, letters, and photos.
3. Understand the claims process.
   Review your warranty contract to understand the specific steps for filing a claim and resolving disputes. Some warranties may require mediation or arbitration to resolve disagreements.
4. Know who is responsible.
   Determine if your builder is self-insuring the warranty or if they purchased it from a third-party company. An independent, third-party warranty can offer more security, particularly if your builder goes out of business.

The bottom line for new homeowners

A builder's warranty is a major advantage of buying a new home, but it is not a "set it and forget it" feature. By understanding the coverage, documenting everything carefully, and following the correct claims process, you can ensure your investment is protected for years to come.