Are Warranties Available for New Custom Homes?When you purchase a brand new television or computer, it will typically come with some type of warranty. However, when you go through the process of building a new custom home, will it come with the same protection?

The answer here is, possibly.

In the case of a newly built home, you may be able to secure a warranty. In fact, according to the FHA (Federal Housing Authority), as well as the VA (Department of Veterans Affairs), builders are required to purchase a third party home warranty as a way of protecting the purchasers of newly constructed homes that are financed via a VA or an FHA loan. Such warranties are either backed by the home builder itself, or in other instances, a builder may purchase a warranty from an independent company that covers various items.

So, what exactly is covered in a new custom home warranty?

As with other types of insurance coverage, these plans can all differ. But typically, there is coverage provided for both the materials and the workmanship of the new home, usually for the first full year. For instance, a policy may cover items like:

  • Drywall
  • Paint
  • Siding
  • Stucco
  • Doors
  • Trim

There may also be coverage provided for the major systems, such as the plumbing, electrical, and the HVAC.

In most cases, these particular warranties won’t provide coverage for the cost of ancillary expenses, like if the home owner needs to reside somewhere else while certain repairs are being made. In addition, it may also be necessary for a home owner to purchase separate coverage for the repair and / or replacement of appliances such as the refrigerator, washer, and dryer.

Need to know what type of protection you are eligible for when building a new custom home? Contact Us and we’ll be happy to help.