New Homes And Warranty Coverage – Be Informed

Warranty protection and coverage will vary with each warranty service program so it is prudent that you spend the time to thoroughly understand your responsibilities as the homeowner. It is also important that you understand the role and responsibility of both the builder and the warranty program. You must also ensure that you receive all the documents you are entitled to, I strongly recommend that you contact your warranty program directly to find out exactly how their program works and what documents you should receive from your builder. I suggest you do this even if you have already received the warranty information package from your builder.

Responsibility as a Homeowner

As the homeowner it is your responsibility to get informed and educate yourself on the procedures and the documents required to protect your warranty coverage. If you need to request warranty service it is up to you to complete all warranty service forms and submit them to the builder and/or the warranty program. If you do not submit the forms as required by the warranty program your warranty coverage may be in jeopardy. It is also your responsibility to properly maintain your home.

Role of the New Home Builder

Your builder should provide you with all necessary forms, documents and literature detailing all aspects of the warranty program service. You should expect to receive a homeowner information kit prior to taking possession of your home. It is the builder’s responsibility to repair, replace or reimburse you for any defects that may occur within the warranty period. These defects should be remedied within a reasonable period.

Role of New Home Warranty Program

Basically the warranty program service is there to ensure that the builder provides you, the homeowner, with the coverage you are entitled to. The warranty program may be called upon to help resolve issues between yourself and the builder.

Types of Warranty Coverage

Materials and labor warranty coverage usually begins on the day of possession and may expire on the first or second year anniversary after possession (times and coverage will vary, please confirm with your builder or warranty program the details of your coverage). Generally the warranty will cover any defects or deficiencies. Your builder should provide you with documents outlining the construction performance standards; this is used to help determine what is considered a defect or deficiency and what is considered acceptable.

Structural warranty coverage usually begins on the day of possession and may expire on the 5th or 10th year anniversary date of possession (times and coverage will vary, please confirm with your builder or warranty program the details of your coverage). Generally the warranty will cover the structural components of your home. The builder should provide you with documents outlining the construction performance standards; this is used to help determine what is considered a defect or deficiency and what is considered acceptable.

Items that may not be included in the warranty programs coverage:

Any work, materials or designs installed or provided by the homeowner
Damage as a result of improper maintenance
Normal wear and tear
Changes, alterations, additions or deletions made by the homeowner
Settling of soil around the foundation or along utility lines
Acts of god, such as floods
Damage caused by the municipality or municipal services or utilities
Damage caused by the homeowner
Normal shrinkage or settling of materials, such as small cracks in concrete or nail pops (drywall screws pop through the drywall due to shrinkage of the wood framing studs).

Your warranty service program should provide you with a detailed list of items that are excluded from coverage

Important warranty dates to be aware of:

Depending on the coverage period offered by your warranty service program you should be able to request assistance at any time during the coverage period. Typical coverage periods: the first year for material and workmanship and 5-10 years for structural.

The first 30 days after possession. Any defects or deficiency items recorded during the pre-possession walkthrough should be completed in this period.

Thirty days prior to the first year anniversary, contact your builder to perform the inspection.
Thirty days prior to the end of coverage for the structural part of your coverage.

I believe warranty programs provide a valuable service to both the homeowner and the builder. But ultimately it is your responsibility to protect your interests. If at any time you feel uncomfortable or unsure about any of the processes with the builder or warranty program contact your lawyer for legal advice.