When building a custom home, buyers want to know that their investment is well-protected for the long-term. One of the best ways to ensure your newly constructed home remains protected from the unforeseen is by choosing a builder that is backed by warranty. New home construction warranties offer both builders and homeowners stronger liability protection for the main structural components of the home.
To help homeowners better understand the protection offered to them under our builder warranty, Lee Builders put together this comprehensive guide. Read on to discover everything you need to know about your new home warranty with Lee Builders!
What is a New Home Warranty?
Builder Warranties vs. Home Warranties
It’s important for homeowners to understand that there are different types of warranties: builder warranties and home warranties. Builder warranties (or new home warranties) apply to newly constructed homes that are completed by a builder who has paid for the home warranty. These warranties are provided by the builder or from a third-party home warranty program. By contrast, home warranties are purchased by the homeowner and are usually purchased for existing homes.
What’s the Difference Between a Home Warranty & Homeowners’ Insurance?
While new home warranties are designed to cover the cost of unexpected repairs and replacements, they should not be considered a substitute for homeowners’ insurance. This is because unlike with homeowners’ insurance, home warranties do not cover the cost of structural damage that has occurred as a result of system malfunction. For example, if a homeowner’s air conditioner overheats and causes a house fire, the home warranty company will only cover the cost to have the AC unit repaired — not the home structure.
What’s Covered Under a New Home Warranty?
The new home warranties at Lee Builders offer coverage for a period of 10 years. During the first and second year, specific items are covered by the builder, while other items are covered throughout the duration of the home warranty period. Home builders are responsible for covering the cost of repair or replacement for any items listed for the first and second years of coverage. The warranty company will cover the cost for repair for any items listed through years 1 – 10. For easy reference, please refer to the graphic below:
Why Choose a Builder Backed by a Home Warranty?
Choosing a custom home builder that’s backed by new home warranty is a great way to ensure maximum liability protection for the most essential parts of your home. Especially after paying for the cost of your newly constructed dream home, having a home warranty in place can act as a necessary buffer to protect against financial ruin.
Selecting a builder backed by warranty is also a good idea if you’re not a particularly handy individual or you don’t want to deal with the hassle of tracking down a quality contractor. With a home warranty in place, the warranty provider will take care of these things on your behalf.
Not only do builder warranties help provide added protection from unexpected repair or replacement, but it also illustrates that the homebuilder stands behind the quality of their work. Builders must pass stringent screening processes in order to be accepted by the home warranty program to which they apply. By choosing a builder that’s able to display new home warranty protection, you’ll have stronger peace of mind from day one knowing your home is being constructed by one of the best builders available for the job