A new constructions warranty should be examined and compared. Ask all the home builders and contractors you are considering about their warranty. Consider the new construction warranty as part of the comparison when selecting a home builder. Be sure to research all the warranty companies that your prospective home builders use.
New Construction Warranty: Selective Warranty Companies
Find out whether these companies are selective in their clientele or if accept all applicants for a fee. Some warranty companies are very selective of the home builders they will insure. The company website will explain how this works. These warranties mean a lot, because not all builders qualify for them. A warranty of this nature is like gold, and certainly a sign that your homebuilder, or contractor’s skills are above reproach. They are the mark of a true professional, of spotless reputation.
A vote of approval from one of the leading selective warranty companies is a very educated guess that your home will be among the best constructed in the nation, and will certainly never require that you file a claim on that warranty. Still, if you do for some reason have any problem at all, these warranties are like gold. They stake their considerable reputation on paying the few claims they get very quickly without contesting them.
New Construction Warranty: Investigating Warranty Companies
You can learn a lot by pulling up the company website and even more by running a Google search on the company. Search for complaints and reviews. You may also check with the Better Business Bureau and perhaps the home builders association as well. There are many online reviews and buyers guides for home warranty companies as well.
New Construction Warranty: Buying your own Warranty
If your homebuilder doesn’t offer a warranty, or you are not satisfied with the warranty, you may buy a warranty of your own for the new construction, from an independent company. This is also a good idea if you act as your own contractor, or if you use a small time spec builder.
New Construction Warranty: Lender Requirements
Many types of home loans, including the FHA mortgage, require a 2-10 warranty. A 2-10 warranty covers structural defects for 10 years, and 2 year system surety coverage. System surety coverage insures wiring, ductwork and plumbing. This is the warranty any home owners should expect either from their builder or by their own purchase, whether it is required or not.
New Construction Warranty: Reading the Warranty
There are several points to look for in a home warranty. A few of the most important ones are listed below.
• Term of coverage for each item
• Maximum coverage for each claim
• Types of items covered in the warranty
• Is the warranty transferable if you sell the house?
• What is the claim filing procedure?
New Construction Warranty: Additional Warranties
It is likely that your windows, doors, siding, roofing and many other components of your home all have separate warranties. Be sure to keep up with these warranties. It is a good idea to keep a folder in your home filing cabinet to keep household warranties in. Start your warranty folder with all the warranties for the various materials in your home.
While everyone hopes that they will never need to file a claim on their home warranty it is inevitable that some people will have to. It pays to plan for the unexpected and that is why home warranties are so important. For more information on evaluating a new construction warranty, please see the other articles on this site, and download our free 98 page book.