68. New Home Warranty

A New Home Warranty, also known as a structural warranty or new build warranty, is a type of insurance policy that provides coverage for certain aspects of a newly constructed residential property. Its purpose is to offer protection to homeowners against defects or issues that may arise within a specified period after the property's completion. New Home Warranties are commonly offered by developers, builders, or warranty providers to provide peace of mind to homeowners and ensure the quality of the newly built property.

Key components and coverage

Structural defects: New Home Warranties typically cover structural defects that affect the stability and safety of the property. This can include issues with the foundation, load-bearing walls, roof structure, and other essential components.
Coverage periods: New Home Warranties are usually divided into different coverage periods.

Common periods include

1-Year defects liability period: Covers minor defects or issues that may arise within the first year after construction, such as cosmetic concerns or minor system malfunctions.
2-Year defects liability period: Addresses more significant defects that might become apparent within the first two years, such as issues with plumbing, heating, and electrical systems.
10-Year structural warranty period: Protects against structural defects that affect the property's stability and safety for up to ten years. This includes major issues that might take time to surface.

Benefits for homeowners

Peace of mind: Homeowners can have confidence that their newly built property is covered against potential defects and issues that could emerge shortly after completion.
Protection from costs: In case of covered defects, the warranty provider is responsible for covering the costs of repairs, remediation, or replacements, reducing financial burdens on homeowners.
Property value: Having a New Home Warranty can enhance the resale value of the property, as it provides assurance to potential buyers about the quality of construction.
Professional remediation: If defects arise, the warranty provider often arranges for qualified professionals to perform necessary repairs, ensuring quality workmanship.

Exclusions and limitations

It is important to understand that New Home Warranties do not cover every possible issue or component of the property. Common exclusions include:

General wear and tear or maintenance-related issues.
Cosmetic concerns that do not impact the property's structural integrity.
Issues caused by homeowner neglect, improper maintenance, or unauthorised alterations.

Obtaining and understanding the warranty

When purchasing a newly constructed property, you should receive detailed information about the New Home Warranty. This documentation should outline the coverage periods, what is covered, how to make a claim, and any specific terms and conditions. Review this documentation carefully and reach out to the warranty provider or builder if you have any questions or concerns.

Making a claim

If you discover a defect or issue that falls within the coverage of the New Home Warranty, you should promptly contact the warranty provider or builder to initiate a claim. The provider will typically assess the situation, arrange for necessary inspections, and coordinate repairs or remediation as needed.

A New Home Warranty offers homeowners protection and peace of mind during the initial years of owning a newly constructed property. Understanding the coverage, periods, and claim procedures is essential to fully benefit from this warranty's advantages. Always review the warranty documentation and consult with professionals if you have questions about your coverage or potential defects.