If you’re a first-time home buyer, or first-time new construction home buyer, there’s a lot to learn about the ins and outs of the home buying process. From learning new vocabulary and acronyms to reviewing legal documents and clauses, you’re introduced to the bright, big world of real estate when you buy a home.
Once you’ve decided to purchase your home, you’ll want to protect it, right? That’s where a new home warranty comes into the picture.
A new home warranty isn’t a scam. In fact, they can save you a lot of money. On average, according to Forbes, home warranties can cost around $600 per year. Considering a builder’s warranty can cover home systems that cost much more than this, investing in a new home warranty is a no-brainer!
Need to know more? Let’s jump right into everything you need to know about a new home warranty.
What is a Standard New Home Warranty?
A new home warranty is a service contract covering the expenses connected to repairing or replacing covered items at your property. That includes major kitchen appliances along with air conditioning, heating, plumbing, and electrical equipment. When it comes to your doors, windows, or anything involving the structure of a home, that is not included. A builder’s warranty also will not act as an insurance policy; you’ll need to purchase separate homeowner’s insurance.
Do you Need a New Home Warranty on a New Construction Home?
If you are buying a newly built property, your builder will give you some type of warranty on the home for their work and things such as heating, plumbing, and electrical systems that will last around twelve to twenty-four months.
However, a brand-new house does not always mean that the quality is error-free. Although relatively rare, there are some common issues with new homes. A new construction home warranty is an additional safety net that protects you from the rare case of unseen issues.
What are Common Problems with New Homes?
Most often, the problems with new homes are defective materials, cracked fixtures, creaking floors, cracking drywall, or plumbing defects. Even a completely clean final inspection does not guarantee hidden issues are not there or, most commonly, will not arise at a later time. That brings us to the next point, a new home warranty is a good idea because of what the naked eye cannot see during an inspection. For the utmost protection on a new construction home, a new home warranty is recommended.
What is the Difference Between an Insurance Policy and a New Home Warranty?
Insurance covers damages and loss caused by fire, weather, and vandalism from a break-in or burglary. A new home warranty would cover replacing or fixing certain appliances and systems in the home, but it does not cover accidents caused by weather or human destruction.
Should I Shop Around for a New Home Warranty?
When you are deciding on a new home warranty, we recommend gathering a few different quotes and coverage options from various reputable home warranty companies. Your builder’s warranty may suffice, or you can ask your real estate agent or friends and family for their new home warranty recommendations.
Know Your Rights Under a Builder’s Warranty
It’s best practice to equip yourself with a new home warranty, but also be sure to understand your rights in your state as a new construction home buyer. There may be certain guidelines and protections in place for you that go above and beyond a builder’s warranty. If you discover a major issue with the builder, Georgia law may protect you against negligent construction or fraud.
Ask Questions About Your New Home Warranty
Take your time with understanding a builder’s warranty and how that may come in handy if something occurs or stops working. Understanding what is or is not covered will make any needed repairs easier and quicker, so you can spend more time enjoying your new home.
The Cost of a Builder’s Warranty
When considering what a new home warranty will cost you, plan on spending between a few hundred dollars to around six hundred dollars per year. If you decide to cover more parts and appliances in your home, then, of course, it will become pricier. You should also factor in service calls, which can cost you around one hundred dollars based on what provider you pick and your contract type.
A builder’s warranty, or a new home warranty, was created to protect homeowners from hidden defects, appliance repairs, and system issues. Especially within the first year of new home ownership, after you’ve spent your hard-earned money on your dream home, it’s nice to have a plan in place in case of any unexpected but necessary repairs.
To help you feel more confident in your Brock Built purchase, every Brock Built home comes with a one-year limited warranty. This gift from our team serves to ease your mind and make the first year of home ownership that much more comfortable.
To get started on your new home search in Georgia, Florida, and Alabama’s favorite neighborhoods, reach out to our team! We’re here to serve you and all of your home search needs.