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Types of Home Warranties

There are three types of home warranties:
  1. All new homes come with an implied warranty from the builder, which covers structure, soundness and function of the home. The builder will replace or repair anything that threatens the home.

  2. In addition, some homes come with an expressed warranty, which should lay out specifically what is covered and for how long. For example, certain major structural defects may be covered for up to ten years, however, plumbing and electrical flaws may only be covered for one year. When this type of warranty is offered, be sure to read it in detail. If you do not understand what is covered, have the builder clarify it for you.

  3. There is a third type of warranty and this is an insurance backed warranty. In the unlikely event when the builder defaults, the insurance company will guarantee the coverage.

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