When you are building a new home, one important thing to consider before selecting a builder is their home warranty. For many families, a new home is the biggest investment they will make, so it follows that knowing how your investment is protected should be a consideration up front.
Before you sign with a contractor to build your new home, consider the following pieces of information about their home warranty:
Who Guarantees It?
Many home warranties, especially when you are going with an independent, locally-based builder, are backed by the builder themselves. However, it is also possible that a builder will works with an independent home warranty company for their coverage. Be sure to ask how claims are handled and who is responsible for the warranty work.
What Does It Cover?
Not every issue will be covered by a home warranty. For example, the appliances, small cracks in cement or drywall, or things otherwise covered under a manufacturer’s warranty are not usually covered. Be sure you know what is excluded, and what the length of coverage is for categories of repairs that are covered.
What Do I Do In Case of a Dispute?
In the circumstance that there is a dispute with the builder (a highly unlikely case, but not unheard of), be upfront in asking what your recourse is. Many builders have a predefined process written into their warranties regarding how to dispute a refusal of service, sometimes it will go through mediation and arbitration before going through court, but make sure you know what your rights as a claimant are.
There are a lot of things to consider when choosing a home builder, and sometimes making sure you are asking the right questions can be a challenge. However, protecting your investment with a full understanding of your new home’s warranty should be an important consideration for anyone considering building a home.