A home warranty
is a one-year service contract that helps protect home owners against the cost
of unexpected repairs or replacements of their home’s major covered systems and
appliances that breakdown due to normal wear and tear. A home warranty offers a network of
prescreened contractors and qualified technicians, who work in conjunction with
the warranty company.
A new home warranty that comes with your new home maybe comfort for
your thoughts, but take heed of the fine print. The home warranty is purchased by the builder;
the happy feelings of security can quickly turn into a nightmare when something
goes wrong. Many times your builder and
the home warranty company insist your particular problem isn’t covered.
As a home
inspector, I have seen many situations in which home claims are denied because
of one year builder warranty and new home warranty regulations, and even
contractors that have gone out of business only to open under a new company
name. A new home warranty is more of a
service agreement than an insurance policy.
Be proactive; safeguard yourself by comprehending the policy. When
making a home warranty claim, reread your policy thoroughly and be persistent when
dealing with the warranty company and builder.
New home
warranties cover, workmanship and materials related to a home’s systems and
components, including HVAC, the electrical system, plumbing and windows. Most likely
it will not cover appliances or components accompanied by a manufacturer’s
warranty. It also usually will not cover
alternative accommodations if you have to move out of your home while repairs
are being made.
A new home warranty
can last for as long as ten years, but includes shorter coverage terms for
certain systems, workmanship and materials. Doors, drywall, and trim are only covered
for only the first year; other major structural items may be covered for years
longer. Home warranty coverage only takes effect when severity of defect meets
the specified terms covered by the warranty. A builder will usually warranty workmanship
for up to a year. Make sure you have
submitted all claims prior to the year. Schedule a new home warranty inspection
to evaluate and document any concerns prior to end of the builders warranty or
items limited by a new home warranty.
Get a
professional home inspection before
you close on the home. Not only can the home inspection ensure the
home is properly constructed, it can also establish the situations of the home
at the date it was moved into. It is
always prudent to document as much information as you can before filing a
claim.
