The Benefits of New Construction & Remodeling Warranties

Why would I need a warranty?

If you were to buy a new, HD plasma TV and 8 months after your purchase, it stopped working, would you expect the manufacturer to repair or replace it? Naturally, you would, because most large appliances come with a written warranty which assures you that the manufacturer will repair or replace it if it breaks after only 8 months. Buying a home is one of the largest investments you will ever have. It makes sense that you would also expect such a large purchase to include a substantial warranty on the quality of the materials, workmanship and structure of your new home. Whether you are having a new home built or you are having an older home remodeled, asking your Builder to provide a structural warranty on the work he or she does is smart planning.

Construction Site

Why is a Structural Warranty a Good Idea?

As your Builder creates your new home or remodels your existing one, you trust that as he or she lays the foundation, pours the walls, builds the framing, installs the electrical, connects the plumbing, hangs the drywall and other structural components, he or she is doing high-quality work. Some Builders only give a verbal guarantee to fix anything that goes wrong. But if you do not have a written warranty, with specific coverages, you have no tangible protection in the event that something goes wrong. In contrast, a written warranty clearly enumerates what is and is not covered, how long it is covered and who is responsible to fix it. This type of warranty is called an expressed written warranty. An expressed written warranty offers you peace of mind, as you know exactly how your home is covered, and what to do if something malfunctions.

What Does a 10-Year New Home Warranty Provide?

In the standard 10-year new home warranty, during the 1st year, the Builder agrees to correct defects in workmanship and materials as listed in the warranty. These sorts of repairs are commonly called a 30-day or 11-month punch list. During the 2nd year, the warranty covers flaws in major systems, such as the plumbing system, the septic system, the electrical wiring system and the HVAC system. For example, if the electrical system’s wiring fails to carry the load specified, the Builder will correct it if the failure is caused by improper installation or materials. In contrast, broken electrical fixtures would be the homeowner’s responsibility after the first year. In the remaining 8 years, the Warrantor covers specific structural components, listed in each individual warranty. If you are using any sort of HUD, FHA or VA financing, you will need to use a Warrantor who is HUD-approved, such as our company, American eBuilder.


What is a 5-Year Remodeler’s Warranty?

A standard 5-Year Remodeling and Addition Warranty covers many of the same things as a new home warranty, albeit for a shorter period of time. This sort of warranty is for an older home which is having remodeling work done or having an addition, such as a sunroom, installed. During the 1st year, the remodeling warranty covers issues with workmanship or materials. The remodeler is responsible for these repairs. Again, the warranty will very specifically enumerate what constitutes a covered repair and what is considered to be routine homeowner maintenance. For example, if a faucet, valve or pipe leaks, the remodeler will repair it, if the leak has been caused by faulty installation or defective materials. But if the leak is caused by worn washers or seals, the homeowner is responsible to replace those. The Remodeler’s Warranty also includes 5 years of coverage for specified load-bearing structural components. The Warrantor will repair such problems. A Remodeling and Addition Warranty is tailored to cover the specific work you are having done. Keep in mind that the Remodeling and Addition Warranty only covers the new portion of your home, not the existing structure.

Who Pays for the Home Warranty?

Your Builder will need to provide the warranty as part of his or her superior service. If your Builder is a member of the American eBuilder family, we have verified and screened him or her to ensure that he or she does top-quality work. Homeowners are not permitted to purchase a warranty themselves, as a Builder must agree to the 1st year or 2 of needed repairs. However, homeowners may ask their Builder to provide the warranty. Compared to the cost of an unexpected repair, a warranty is a great investment – an average of $300-$500 – although the warranty cost will vary, depending on such factors as the sale price of a home.

How Do I Get Warranted Service?

Your warranty booklet will provide details on who, how and when you should notify your Builder or your Warrantor about an issue. In addition, in the case of our company, American eBuilder, the Service tab on our homeowner website ( allows you to submit a service request online. In general, for the first 1 or 2 years, you should contact your Builder. If you have difficulty contacting your Builder to complete the repair, you may also contact your Warrantor for assistance. For years 3 – 10, you should contact your Warrantor directly.

What if I Sell My Home Before the Warranty Expires?

10-Year Structural Warranties are normally transferrable. Because the warranty covers the structure at a specific address, even if you sell your home and new owners need an issue repaired, Warrantors will honor the warranty. It’s important to give the new owners your copy of the warranty booklet, as that will let them know not only what is still covered, but will also provide them with contact information for both the Builder and the Warrantor.


About Us:

American eBuilder, for Builders, and American eWarranty, for Homeowners, have been providing new home warranties across the US for over 13 years. We serve homeowners, Builders, Realtors, loan processors, mortgage lenders, title companies and developers. Our warranties strengthen a Builder’s reputation and provide assurance and peace of mind to homeowners. American eBuilder and its subsidiary, American eWarranty, are also proud to be the first name to whom professionals turn when lenders and home buyers across the United States need a HUD, VA or FHA approved, insurance-backed warranty.

Having an American eWarranty express written warranty on a new, single-family home, townhouse or condominium demonstrates that the Builder has met or surpassed underwriting requirements and is interested in providing the best new-home product to his homeowners. Homeowners love an American eWarranty express written warranty because they have in writing the items and issues guaranteed to be warranted by the Builder.

The expressed written warranty helps homeowners avoid the pitfalls that are often associated with verbal promises or statements between the parties. You, the homeowner, know up front exactly what will be covered by the warranty, for what duration and what is considered homeowners’ maintenance. With an American eWarranty limited written warranty, Builders and homeowners alike find comfort in its arbitration provision. If an impasse arises between a homeowner and a Builder, this provision brings in an arbitrator to hear the respective positions and resolve the impasse without protracted litigation and its associated expense. That’s a win for both homeowner and Builder.



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