Matt McAlister
Thursday, July 12, 2018

What Is Builder’s Warranty Insurance?

When you’re buying a home, you have to consider a number of different expenses, including various types of insurance. If you're contracting for a newly built home, you may have heard about builder’s warranty insurance, and you may be wondering such things as “What is builder's warranty insurance," “What does builders warranty insurance cover” and "Do people need a builder’s warranty on new build houses?" Here are the facts about builder’s warranty insurance.

What Is a Builder's Warranty?

A builder’s warranty, which may be backed by the builder or by a third-party warranty company, usually comes in two parts — a workmanship and materials warranty and a structural warranty. Typically, the structural warranty protection lasts considerably longer than the workmanship and materials protection. For example, you may have a one-year/eight-year warranty.

The workmanship and materials part of the warranty covers individual components of the home, like parts of the HVAC system, electrical system or plumbing. The warranty should specialize what is covered with regard to repair or replacement of the components where problems arise. Workmanship and materials warranties for new construction homes may also cover things like paint and drywall.

The structural coverage part of the warranty covers structural defects. A basic rule of thumb is that a problem that could actually affect the integrity of the home, making it unsafe for the owners, would be considered a structural defect. Examples include issues like a collapsed part of the foundation or a caved-in roof.

Some issues that are often not covered include minor defects, like cracked tile, issues with household appliances or problems with other items that should or do come with their own manufacturer’s warranty.

If there’s something specific that you don't see covered by your builder’s warranty that you think should be covered, remember to ask the builder about it. Your item may be covered without you realizing it, or they may be able to make accommodations to the warranty to cover your issue. If not, you'll want to buy additional coverage to protect you with regard to this item as soon as possible.

Why You Need a Builder’s Warranty on New Homes and How It ProtectsYou

Of course, you have the right to expect that your home builder will use only the highest quality materials and the best contractors and will do the job you hire them to do the right way. But having a good builder’s warranty will give you the peace of mind of knowing that if something does go wrong, you and your family will be protected, and you'll be able to resolve the problem and go on enjoying your life and home without facing financial ruin.

Mistakes can happen. Someone could fraudulently pass the builder subpar materials, a product newly touted as state-of-the-art could have imperfections the manufacturer was not even aware of or some other unforeseen circumstance could threaten the integrity of a newly built home even if everyone has the best of intentions. If that happens, an apology or a “What can you do?” is not going to put that roof back over your family members' heads.

Like most insurance, you hope that you’ll never need it — and in this case, if you go with a reputable builder, you probably never will. However, it’s nice to know it’s there if you do. The last thing you want to have to deal with is some kind of major repair or replacement in your home after you’ve just spent a ton of money on a down payment and taken a tremendous amount of time out to purchase and move into a new home.

Keep in mind that relative to the cost of your new home and even relative to the cost of most home repairs, builder’s warranty insurance is fairly inexpensive. If you don’t have it, it's usually well worth the investment just for that peace of mind and for the rare circumstance where the warranty will come into play.

While it should be clear now why you will need a builder’s warranty if you're contracting for a newly built home, it’s important to note that many builders include a builder’s warranty on new homes, so you won't have to buy additional builders warranty insurance unless you feel that the existing coverage is not sufficient or broad enough. It never hurts to ask the builder what a builder’s warranty covers just to be sure you have enough protection, but in most cases, the coverage should be sufficient.

Contact SK Builders for New Home Construction in South Carolina With a Comprehensive Builder’s Warranty

SK Builders offers a comprehensive warranty, which we invite you to peruse if you're considering a new home build in South Carolina. SK Builders and McAlister Realty back this warranty — it's in-house and not a third-party warranty. In fact, we have a team of full-time warranty staff to make sure you understand your warranty and ensure it's being implemented properly. This solution is a one-year full coverage, eight-year structural coverage warranty that's designed with the full protection of our clients in mind.

We're always happy for our potential clients to have a full understanding of the warranty protection we offer. We're also excited and ready to explain the coverage in full at your request. We’re fully confident in our workmanship, which is why we stand behind it with such a strong warranty.

If you're looking for a new build home in South Carolina, SK Builders is the perfect company to know. We've been building beautiful new homes in South Carolina for close to 25 years, and with our more than 70 customizable floor plans, we’re sure to be able to put a house plan together for you that you and your family will love for years to come.

We have a strong relationship with McAllister Realty to make the whole process of home buying a seamless one. If you’re ready to see your dream home in upstate South Carolina come to life, contact us for a free consultation today.

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