Home buyers take their time choosing a lot for their property and reviewing floor plans for their new home. When investing this much time into a home purchase, it is vital for the buyers to consider common issues that could arise within the first few years of owning the property.
A new construction warranty may provide the buyer with the added protection or guarantee they need from their builder. It can provide protection for structural issues that prove costly for the new homeowner. These structural issues can be repaired quickly without additional costs if the buyer purchases the warranty before they move into their new home.
Guaranteed Structurally Sound
The warranty guarantees that the property is structurally sound, and the buyer won’t have to worry about defects that will cause the property to collapse. Property buyers can purchase a new construction with peace of mind and not have to worry about the high cost of property damage.
With the warranty, the property buyer gets repairs and replacement services if a problem arises within the term of the warranty. Property buyers can learn more about a warranty for a new construction by contacting a home warranty company now.
Several Property Inspections
When building a new home, the builder is required to set up several inspections over the course of the construction project. They must schedule the inspections with the building inspector at specific phases to ensure that the property meets all building codes and regulations. If an issue is discovered during the inspection, the builder must correct the defect or problem before moving onto the next phase of the project. The warranty covers the buyer’s interest when these issues arise.
Protection for Sudden Issues
Sudden issues won’t become a problem for the property buyer. The new construction warranty provides ample coverage for the entire property and all services provided by the builder. The protection applies from the roofing to the foundation. Whenever the owner finds a defect or issue that causes structural problems with the property, they contact the warranty company to set up repairs or replacement services.
Coverage Term and Limit
The new construction protection starts on the day the warranty is purchased, and it lasts for ten years. The coverage applies to all structural elements of the property and gives the property buyers peace of mind. When setting up the new construction warranty, the home warranty company collects information about the property such as the square footage and the date when it was built. The property owner is protected as long as the damage was caused by construction defects that led to property damage.
What Restrictions Apply?
Homeowners will face some restrictions when it comes to these new construction warranties. For example, it will not cover any structural changes that the homeowner completed themselves after the end of the construction project. If the property owner caused property damage, it is not included in the coverage. Weather-related damage is not covered. If the paint on the exterior of the property fades, the warranty will not pay for a new paint job since paint is known to fade over time.
The property owner won’t get coverage if they do not follow proper maintenance requirements as directed by the builder. For example, if the property owner fails to clean out their gutters, the builder is not responsible for water damage caused by the failing gutter system.
Does the Owner Pay a Premium Every Year?
No, the property buyer pays one premium when they purchase the warranty. The cost of the warranty could range up to as much as $100,000 depending on the square footage, installations, and the price of the property. It is important to choose a warranty that protects against common issues that could fail in a new construction project. For example, if the builder uses inferior products, they are at fault for sudden problems that happen and cause property damage.
It is not the same as a home warranty where the property owner pays an annual premium to protect certain installations. These warranties cover the structural elements of the home and prevent buyers from buying a faulty home.
Protection for the Framing
The framing is the most vital structural element of the property, and it must be designed properly to support the weight of the entire property and the roofing. The design must meet building codes and should comply with all state and federal regulations. It is the second phase of the construction project after the foundation is poured.
If there are any structural problems with the framing within the term of the warranty, the builder must make corrections to prevent severe property damage and keep the property safer. If the property owner suspects framing damage, they contact the warranty company to arrange an inspection.
Protection for the Flooring System
The warranties cover the flooring system, too. The builder must guarantee the floor joints and braces for at least 10 years through the warranty, and if the flooring becomes structurally unsound during the term of the warranty, the property buyer files a claim through the warranty company. The warranty provides a replacement floor if the damage was caused by inferior construction services.
However, the buyer cannot file a claim for any flooring damage that they caused themselves. The warranty doesn’t cover pet-related damage or any conditions that could be deemed the property owner’s responsibility.
New home buyers have several options for protecting their investment and avoiding serious financial losses because of builder errors. The most useful of these options is a new construction warranty. Not all builders provide a guarantee or long-lasting warranty for the property. For most, the guarantee or warranty from the builder lasts no longer than 90 days. However, problems could arise after this period.
A new construction warranty provides protection for the buyer for up to ten years. It covers common structural elements of the property and prevents the buyer from incurring unnecessary expenses because of inferior construction work. They can file a claim through the warranty company at any time that structural damage is found within the first 10 years.