Buying a brand new home can feel like a fresh start. But just because it’s never been lived in doesn’t mean it’s problem-free. That’s what a builder home warranty is for, but there’s fine print to be aware of.
Most new construction homes include a warranty that covers defects in materials, systems, and structure. But what exactly does that mean? How long do you have? And when should you schedule an inspection?
Let’s break it down.
What Does a New Build Warranty Cover?
The average builder home warranty offers a tiered structure of coverage. While specific terms vary, here’s the general breakdown:
- One-year coverage for defects in workmanship or materials, including drywall, flooring, paint, doors, and trim
- Two-year coverage for major systems such as electrical, plumbing, and HVAC
- Ten-year coverage for structural components like framing, foundation, and roof structure
The builder is usually responsible for correcting any qualifying issues that occur within those timelines. However, cosmetic issues caused by the homeowner or normal wear and tear are not covered. Appliances, landscaping, and detached structures like sheds are also typically excluded.
Be sure to review your builder’s documentation to understand the specific coverage, limits, and reporting process.
Common Warranty-Related Issues in New Homes
Even if a home passes its final inspection before closing, problems may still show up later. New homes often settle during the first year. Materials expand and contract, and systems go through their first full seasonal cycle.
Here are some of the most common issues homeowners find in the first year:
- Nail pops or drywall cracks
- Doors or windows that become misaligned
- HVAC systems that struggle to maintain temperature
- Drafts from poor attic insulation
- Outlets that don’t hold plugs securely
- Squeaky or uneven flooring
- Improper grading that leads to water pooling
- Foundation cracks
- Roof leaks from flashing or ventilation errors
While some of these seem small, they can become expensive if left unaddressed. Catching them early gives you a better chance of having repairs covered under warranty.
Why You Shouldn’t Rely on the Builder’s Walkthrough
Most builders offer a brief walkthrough near the end of your first year. This is meant to identify obvious cosmetic concerns, like paint touch-ups or cracked trim. But these walkthroughs are often surface-level and rely heavily on what the homeowner notices.
According to the National Association of Home Builders, 61% of new construction homeowners reported discovering at least one warranty-eligible defect within the first year that was not identified during their builder’s final walkthrough.
Even more concerning, research from the Journal of Construction Engineering found that over 40% of first-year structural or mechanical issues go unnoticed without a third-party inspection.
Professional inspectors bring an objective, expert perspective. They check areas the average homeowner (and even builders) may not look at closely, including attic ventilation, roof flashing, foundation drainage, and insulation coverage.
Inspectors also test outlets, verify HVAC performance, and examine signs of moisture intrusion or settling that could impact your warranty coverage.
A builder’s checklist might help with the basics. A licensed home inspection ensures nothing major slips through the cracks.
Related Questions and Answers
Are builder warranties transferable to new owners?
Some are, depending on the terms. In many cases, structural warranties stay with the home for a full ten years, even if there’s a sale. Shorter-term warranties, like those covering cosmetic or system issues, often expire with the original owner. Ask your builder for clarification if you plan to sell within the warranty period.
What’s the difference between a final inspection and a warranty inspection?
A final inspection happens before you close on a home. A warranty inspection happens near the end of the one-year mark. By then, the home has gone through seasonal changes and settling. A warranty inspection is designed to uncover problems that didn’t exist or weren’t visible at closing.
Can grading or drainage problems be covered under warranty?
Yes, if poor grading was part of the original construction and is leading to water issues. An inspector can evaluate the slope around your home and flag any concerns, which may qualify as a workmanship defect.
What if my builder refuses to fix something?
Start by reviewing the warranty terms. If the issue is covered and reported within the proper timeframe, the builder is obligated to repair it. If they refuse, you may need to escalate through mediation, arbitration, or legal channels. Having a professional inspection report strengthens your position.
When to Call a Professional
If your home is approaching 10 or 11 months old, it’s the ideal time to schedule a warranty inspection. At this point, your home has gone through enough seasonal changes for issues to surface, but you’re still within the typical one-year coverage period.
AHI Residential and Commercial Inspections provides thorough 11-month inspections throughout Charlotte and the surrounding areas. We inspect the entire property from roof to foundation, including your home’s major systems and hidden spaces. Our goal is to give you a complete list of issues to bring to your builder before the deadline passes.
This one-time inspection can prevent costly repairs down the road and help you get the full value of your warranty.
Conclusion
New homes come up fast, and often with a few surprises. A builder home warranty helps protect you, but only if you use it. Don’t assume your home is issue-free just because it’s new.
If you live in the Charlotte area and your new construction home is nearly one year old, schedule a warranty inspection with AHI today. Our team will help you spot potential problems, document concerns, and make sure nothing gets missed before your builder’s coverage ends.
