New Construction Home Warranty – What They Cover?

Erin Easley

Written By Clint Bird

Published 03/12/20
New Construction Home Warranty – What They Cover?

When you have a home built from the ground up, you can choose and pick from all the features the builder offers, and even add some upgrades of specifics you want. In the long run, this can often be less expensive than fixing and updating an older, existing home. According to the Census, completions of privately-owned housing units in April 2024 were at an annual rate of 1.623 million, a significant increase from the previous month and year. Single-family home completions also saw a notable rise. Depending on the type of home and the features you've chosen, it can be less expensive to build new as opposed to buying an existing older home as well. A newly built home will also come with a new home warranty.

With new construction, home warranty plan is a standard perk. It covers not only the items a typical home warranty plan does, such as appliances and systems, but it goes beyond that a little bit more by covering the doors, flooring, windows, in addition to the things like cabinetry, countertops, shower stalls, sinks, tubs, etc.  within your new home, no matter if it is an existing older or a newly built home.

home warranty for first time home buyers can prove to be an especially great value, because many have never had to deal with and handle things like the shower stall that leak, countertops cracking, or the cabinetry falling off the wall. And for the price of a newly built home, whether you are an experienced homeowner or a first-time homeowner, you shouldn't have to worry about those repairs/replacements. All states have varying laws for home builders that require them to offer new homeowners warranty on the construction of the house. Including electrical and plumbing warranty on new homes.

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A Newly Built Home Is Exciting and Stressful

Moving is a stressful time, even when you're moving into a brand newly built home. Buying a home is one of the biggest financial investments you'll make, and you want to make sure that investment will be protected, beyond that of homeowner's insurance.

One of the best ways you can do this is to make sure the builder includes a new home warranty as part of the package. This will assure you that the appliances, electrical system, and plumbing system will be repaired or replaced if needed. From the HVAC to the refrigerator, the dishwasher and all the plumbing system, as well as the electrical system, will be repaired or replaced by the builder. The standard length of a new home warranty is typically one year from the date of purchase.

But what about after that first year? The dishwasher, the HVAC system, plumbing, the water heater, etc. will all begin to age. Normal wear and tear will begin to show with all these things, but the builder's warranty has expired, and then what?   Therefore, purchasing a home warranty plan after the original builder warranty expires can be a smart, and valuable move.

Is A Home Warranty Worth The Expense For New Construction?

After the first year, your newly built home is no longer considered newly built. The original builder's warranty has expired and the chances of appliances, electrical, or plumbing systems failing will increase (or so it will seem). With a home warranty plan, the cost of repairing or replacing those things won't be as financially devastating. Why? Because paying a service call fee, often referred to as a deductible, of $50 to $75 is much cheaper than repairing the HVAC system or replacing the dishwasher.

The Benefits A Home Warranty Are Unlimited Even For A Newly Built Home

The peace of mind is immeasurable when you have purchased a home warranty, even for a newly built home, especially for a first-time homeowner. There are always unexpected expenses in life, and when you own a home, you can be certain that at some point, an appliance or any part of the home system will break.

Repairing or replacing these things can mean an unplanned expense but with a home warranty, you'll only be out-of-pocket the deductible or a service call fee. Knowing this when you leave for work or turn in after a long day, will give you a level of reassurance that owning a home is well worth the commitment.

The experts at Liberty Home Guard are more than happy to discuss our home warranty plans with you, provide you the options available to you along with the pricing. Make that call today and let's see what we can do for you!

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