A home builder’s warranty is vital to protect your dream home. There are several different types of home builder’s warranties. Some are better than others, but it is vitally important that you understand your warranty, and have sufficient contact information should something go wrong. Here are some different types of warranties.

Home Builder’s Warranty Types

Builder’s Organizations that Offer Warranties

Home builders and contractors may join organizations that provide a home building warranty service, in order to offer a quality home builder’s warranty. As you can imagine, many of these organizations are selective in their membership, since they will be liable if anything goes wrong. This is yet another way to recognize a credible builder. There are a number of warranty organizations nationwide that actively seek good home builders and contractors while avoiding questionable ones.

Dues to these organizations are affordable for a credible contractor or home builder. For example one such company has an annual renewal fee of $175, and $250 for the first year, which is quite reasonable considering the risks contractors and home builders encounter without them. This fee allows them to issue warranties for each house they build.

Home Builder’s Warranty: Purchased by the Home Builder or Contractor

Many builders purchase warranties from large warranty companies who are willing to insure their work. These warranties must be purchased for each home built. Most of these companies also screen home builders, and will not warranty a home build by someone of bad reputation. FHA Loans require builders to purchase a home builder’s warranty.

Home Builder’s Warranty: Warranties Purchased by the Home Buyer

If your builder has not offered you a suitable warranty you can purchase one yourself to protect you in the event there is a problem and his warranty doesn’t pay. Warranties protect the home owner so it is to your advantage to make sure you are protected in the event something goes wrong.

Home Builder’s Warranty: Home Owner Warranties His Own Work

A contractor or home builder promising to stand behind his work is also a warranty of another type, but only if he puts that in writing, and only if your damages do not exceed his savings. It is far better to work with a contractor who is insured by a home builder’s warranty organization, and proper insurance.

Home Builder’s Warranties Should Cover:

• Workmanship
• Materials
• Windows
• Heating
• Ventilation
• Air Conditioning
• Plumbing
• Siding
• Stucco
• Doors and Trim
• Drywall
• Paint
• Protection against Major Structural Defects

Home Builder’s Warranty: Duration

Warranties vary in duration, and some warranties guarantee different parts for different lengths of time. The best warranties should cover your home against major structural defects for up to ten years, while they may only cover paint, drywall, windows and doors for a year or two.

It is important to read your warranty carefully and consider purchasing your own warranty if you are dissatisfied with the coverage of yours. A home builder’s warranty is a very important aspect of building your dream home.

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