4 Reasons All New Construction Homes Should Come With a Warranty

4 Reasons All New Construction Homes Should Come With a Warranty


4 Reasons All New Construction Homes Should Come With a Warranty

Your Buyers Need Home Builders Warranty Protection — Here’s Why

Understanding the benefits of home builders warranties will help you guide your buyers through their next new home purchase, and they’ll appreciate having the information they need to make the most informed decisions about protecting their home.

From buyer peace of mind to the possibility of rushed workmanship, here are the top 4 reasons your clients’ new construction homes should come with warranty coverage.

1. Peace of mind for buyers

 This simple reason is perhaps one of the most important. Purchasing a new home is stressful, and homeowners are often keenly aware of how likely it is that something will go wrong. That’s why buyers are more likely to purchase a home with warranty coverage versus one without protection — it calms their nerves.

Home builders warranties can also give you more peace of mind in your real estate business.

 2. Problems aren’t always obvious right away

When a homeowner first moves into their new home they’re excited and ready to get unpacked. That excitement makes it easy to miss problems with the home.

Bigger issues can also take time to materialize. This is particularly common with structural issues, which are more common than most people realize. In fact, most structural claims are reported between four and seven years after the sale of the home:

  • 30% of claims are received within the first four years after the sale.
  • 70% are received after the fourth year, with peak claims activity occurring in years four through seven.

The majority of homes are designed to move ½ inch to 1 inch, but some will heave or settle much more than that, which brings us to our next point.

3. Fixing issues, especially structural problems, is costly for homeowners

 On average, structural repairs to a home cost $42,500. That’s a large chunk of change, and no homeowner or builder wants to pay such a big sum. Home builders warranties, including Structural Warranties and Systems and Appliances Service Agreements, protect homeowners and builders alike from the impact of these financial surprises.

Your clients should thoroughly review their coverage documents so that they understand exactly what’s covered. For more guidance, you can even point them to this helpful article: Understanding What a Home Warranty Service Agreement Does and Does Not Cover.

 4. Home builders warranties protect against poorly completed work

 Not all builders are guilty of this one, but the building of new construction homes is often rushed. Builders have to stick to strict schedules and deadlines. When that happens, some corners will inevitably get cut.

Again, these problems won’t always be apparent immediately. A home builders warranty ensures that the builder and their subcontractors can be held liable for fixing shoddy craftsmanship and that your clients stay happy in their new homes for many years to come.


Executive Construction Homes places a 2-10 Warranty on every home delivered.  It’s the most-used and best-recognized warranty in the home-building business. This one year of workmanship coverage, two years of systems coverage, and ten years of structural defect coverage is approved by the Department of Housing and Urban Development (HUD) and offers comprehensive coverage on your new home purchase.

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