If you're in the middle of working to build your dream home, you'll want to make sure your new-construction home is covered once it's done. Here are four reasons why you should get a home warranty.
There’s nothing quite like building your dream home. Building your own home means getting exactly what you want, at least within budget limits. Plus, you don’t have to worry about what might be lurking under the surface because you’re starting fresh with a clean slate, at least in theory.
But newly built homes can have problems, too. You never really know what’s going to happen. Maybe your builder will accidentally use defective materials. Maybe your home will settle in a weird way, and it’ll cause problems with the home’s systems or structure. Maybe your builder will cut corners. And even though home builders generally give some kind of warranty on their work, that warranty will only cover the parts of the home they built. They’re not going to help if an appliance breaks down or a home system fails due to unexpected defects or normal wear and tear. For this reason, you should buy a home warranty for your new-build home — you may even be able to roll it into your closing costs.
You Never Know What Might Go Wrong — Even with a New Home
Home warranties provide protection against a whole range of unforeseeable problems, and that’s why they’re a must-have weapon to protect your home from emergencies. New-build homes may pass their final inspection and be declared fit for habitation, but that doesn’t mean you can’t have problems with them. Some common problems include the use of shoddy or defective materials; cracked fixtures; electrical, plumbing and septic problems; landscaping problems; and creaking floors or cracking drywall due to settling.
What does a home warranty cover in a new-build home? It provides protection for things that your builder’s warranty and homeowners insurance doesn’t — namely, appliances and home systems.
You Might Not Notice Problems Right Away
Problems with a new-build home aren’t always readily apparent. As with any other home, you might not start to notice the problems with your brand new home until you’ve lived in it for a while. If you get one of our real estate plans for buyers and sellers, you’ll have coverage for code violations, failures due to undetectable, pre-existing conditions or mismatched systems and improper installations, repairs, or modifications, in addition to coverage for components or parts of home systems and appliances included in our standard plans for homeowners.
Your Builder May Have Rushed the Job
It’s sad to say that your builder may not have done his or her best work on your home. Often, they don’t mean to do shoddy work, but sometimes builders do rush things on purpose because they have a schedule to keep. Your builder may also have hired inexperienced subcontractors or employees who botch construction or installation jobs.
Builders’ Warranties Don’t Cover Everything
Most builders will offer different warranty terms for different components of a new home. Typically, you’ll get:
- A one-year warranty on materials and labor
- A two-year warranty on plumbing, heating, electrical and A/C
- A 10- to 20-year warranty on structural elements, including load-bearing walls and foundations
Make sure you understand what your builder’s warranty includes. Your builder’s warranty won’t include appliances, like garage door openers, refrigerators, and so forth, and it typically won’t include code violations, permit fees, or defective installations. It also won’t usually include your pool or spa.
So, how much is a home warranty on a new-build home? That will depend on the level of coverage you buy and where you live, but it’s worth it to get the maximum level of protection on your new home. After all the stress of building a home and waiting for months to finally move in, you’re going to want to do everything possible to protect your new investment. Buy your real estate plan today.