Essential Buyer's Guide to Home Warranties

Posted by Shawn Clayton on Friday, January 19th, 2018 at 11:03am.

What You Need To Know About Home WarrantiesWhether or not your newly constructed oceanfront home comes with a warranty depends on the province where the home is built and the construction company that built your home. In some states, a new home warranty must be offered to the home buyer. In other states, this is not required and home builders may offer a home warranty at their own discretion.

When buying a home, one of the many questions you should ask about the property is whether or not there will be a warranty. Generally, a reputable builder will provide a home warranty for buyers because warranties provide reassurance. If your builder does provide a warranty, it's important to know what is included and how you can use the warranty if something goes wrong with the house.

What Home Warranties Cover

A typical home warranty provides protection against:

  • Structural defects. Foundation problems and structural issues that could cause damage or endanger the people in the home are generally covered under home warranties.
  • Material defects. If the roofing materials fail, this is also something that would normally be covered by the home warranty.
  • Workmanship defects. If the builders make a mistake when building the home, the home warranty will cover the repair.

Many home warranties also provide deposit insurance. Some even provide coverage for living and moving expenses if the house cannot be lived in while the repairs are being made.

Why Is a Warranty Necessary?

A good home warranty will protect the consumer in a variety of ways. In addition to protecting the consumer against defects, many home warranties will also mediate disputes between the builder and the home buyer.

Essentially, a home warranty will help new home buyers to feel at peace with their purchase throughout the buying and moving in process. Warranties help ensure that the home is fit for living.

How to Find Out the Details of Your Warranty

Your home builder should be able to explain the coverage of your home warranty in detail, however, it's important to find out for yourself what is in the contract. Contact the home warranty company to obtain a copy for yourself. After reading the contract, if you have questions, contact the home warranty company directly.

Handling Defects

Home buyers who discover defects in their new Lavallette home should follow the home builder's procedure for repairing problems with the home. Most home builders ask that buyers call them with problems first. If the builder does not respond to requests for help, this is when the home warranty company becomes involved.

Your home warranty company will work with your builder to ensure that your home is repaired in a reasonable amount of time.

  • Track and document repairs. Document problems with the builder as well as communications with the home warranty company.
  • Keep the warranty accessible. Know what's in the warranty and know your rights when working with a builder.
  • Keep warranty company up to date. Your home warranty company can only help you if they're aware of the problems that you're having with your property.

Work With Your Home Builder or Real Estate Agent If You Have Questions

If you are considering purchasing a new home and you're not sure whether or not the home comes with a warranty, contact your home builder. If you're thinking about purchasing a home that was recently built but has already been lived in by someone else, it could still be under warranty. Talk to your real estate professional to find out whether or not the home you'd like to buy has home warranty protection.

Shawn Clayton, Owner/Broker, REALTORĀ®

Jersey Shores Luxury Home Expert

Contact Shawn

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