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Most builder warranties cover material and workmanship on a new home for one to two years, with coverage that lasts as long as 10 years on major structural elements. There's much to be wary of these days in the world of new-home warranties.
With a resale house, the home seller may provide a home warranty as part of an incentive package to reassure the buyer that repairs and replacement of existing appliances and equipment included in the home will be covered. The duration of coverage can run from one month to one year from the date of closing.
Most home warranty terms are one year. This is a 12-month contract which in many cases is renewable from year to year.
Home warranty cost Another big factor in deciding if a home warranty is worth buying is its cost. Basic coverage can start at about $300 and go up to $600 or more. Some home warranties charge for a service call, such as $75 or so, while others allow unlimited service calls.
If you are buying a home, ask if there is an existing home warranty or if the seller intends to provide one. Then, ask to see the home warranty contract. This is important because home warranties only cover certain systems and appliances and can have multiple exclusions.
Usually the home warranty coverage plan begins 30 days after the payment receipt or on the day the sale closes. The coverage plan generally covers the appliances for 365 days from the date the policy is active. When your original home warranty expires, you have the choice of renewing your existing warranty.
Warranty generally includes protection against defects in work and materials as well as structural defects and non-completion of works. Warranty is provided as consumer protection for circumstances where the builder dies, disappears or becomes insolvent.
A new-construction home warranty is a structural warranty that provides a written agreement between the home builder and the homeowner and clearly defines the builder's work-product obligations related to construction quality and continuing obligations.
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