What Does a New Home Warranty Cover?
How coverage is tiered, what's excluded, and what to read before you sign.
New home warranties are typically tiered, with different categories of work carrying different coverage periods. Understanding the structure tells you what to expect and what to ask about.
The three tiers
Workmanship and materials
The shortest period, covering the finish-level things: drywall cracks beyond normal settling, a door that won't latch, trim separation, paint defects, tile and flooring issues, cabinet and hardware problems. Most warranty claims are here, and most surface in the first year.
Systems
A longer period, covering the distribution systems: plumbing, electrical and mechanical. Note this generally means the systems as installed rather than the equipment itself, which carries its own manufacturer warranty.
Structural
The longest period, covering load-bearing elements: foundation, framing, beams, columns, load-bearing walls and the roof structure. Structural claims are rare and serious.
Manufacturer warranties run separately
Appliances, HVAC equipment, water heater, windows, roofing, garage door opener and often plumbing fixtures carry warranties directly from their manufacturers, often longer than the builder's coverage on the same item. Keep every piece of documentation you receive at closing, and register products where registration is required. See the final walkthrough.
What warranties typically exclude
- Normal wear and tear
- Damage from failure to maintain, including things like clogged gutters or a neglected sump pump
- Owner or third-party modifications
- Normal settling and seasonal movement, including minor drywall cracking, nail pops, and gaps in wood flooring that open in winter and close in summer
- Landscaping, grading changes and soil settlement after the first period
- Consumables like filters, bulbs and batteries
- Damage from weather events, which is an insurance matter
What to read before you sign
- The coverage period for each category
- The exclusions list, in full, and slowly
- The claim process and expected response time
- Whether coverage transfers if you sell
- Whether it's a builder-backed warranty or a third-party insured program
- Any dispute resolution or arbitration provisions
An Ohio note
Your warranty coverage comes from your contract, which makes the document itself worth reading closely before you sign rather than after a problem. Ask for it during the sales process, not at closing. See our warranty and what to keep after closing.