What To Know About Warranties

New home builder warranties can be intimidating; nonetheless, having a good grip on how they work is important to avoid future headaches. Keep these helpful hints in the back of your brain, and it should alleviate some of your concerns.

Image via www.rigleyrealtygroup.com

Builder warranties often cover materials workmanship for 1 - 2 years for a new home, and coverage generally lasts up to 10 years on anything considered major structural elements.

Your state Attorney General Office or contractor licensing board is a good place to check that the builder you are working with is offering you the warranties that are required by law.

Many states now have laws that are being put into place that change the general 1 year warranty coverage to 2 years, covering materials and workmanship. Some are even adding more time to warranties for defects in electrical, plumbing, HVAC, structural defects, water damage, etc.

Sometimes, home buyers are coaxed into signing what is called a "warranty document," which you should not sign until you've read over it. The document often narrows warranty protections and differs from the original contracts and negotiations.

Make sure you create a list in advance before moving into your new house. Thoroughly go through the house before move in day and check off each item that you discussed as being important. Complete this walk-through with the builder so you can discuss any discrepancies as they come up. Keep in mind your warranties as you go through the house one final time. This may be your last chance to catch any mistakes.

If you want to be completely sound with your decisions regarding warranties and your new house, have your home inspected before the walk through with your builder. This will take some time out of the waiting process, as you will already be aware if something is not up to code. This step can be particularly important as some of your warranties are likely to only last up to 12 months.

Sources
http://www.bankrate.com/finance/real-estate/what-do-builder-warranties-cover.aspx

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