Best Home Warranty for New Construction

Comparison: best home warranties for new construction

The table below compares our picks for the best home warranties for new construction coverage.

Our top 3 picks for new construction warranties

We researched 26 home warranty companies, comparing them based on features like cost, availability, contracts and coverage. We also analyzed reviews submitted by verified customers that mentioned new construction, builder warranty or similar topics. We then used this data to select our picks for the best home warranty companies for new construction.

Our home warranty picks for new construction include:

• Our top pick overall: American Home Shield
• Our pick for combo coverage: Choice Home Warranty
• Our pick for low starting costs: Cinch Home Services

How do home warranties for new construction work?

New construction home warranties provide financial security in the event that an expensive system or appliance breaks down after the final inspection.

Builder warranty coverage typically lasts between one and 10 years.

Builder home warranties offer limited coverage on materials and workmanship for a certain amount of time. Coverage typically lasts between one and 10 years, but the length of time is dependent on your home’s features and the specifics of your plan.

With these warranties, it’s important to submit a claim as soon as an issue comes up. Otherwise, you might be denied coverage. In addition to listing what’s covered and what’s excluded, the contract should specify how long you have to contact the home builder or home warranty company once you find a problem.

» MORE: What is a homebuilders warranty?

What does a builder warranty cover?

Standard builder warranties include coverage for materials, labor, certain home systems and the physical home structure. They may also cover paint, siding and windows, which typical home warranty plans don’t usually cover.

The coverage level and length varies by company and plan. For workmanship and materials used to build the home, a builder home warranty typically provides coverage for a year. Coverage for systems such as heating, ventilation and air conditioning (HVAC), plumbing and electrical usually lasts two years. Major structural defects are sometimes covered for up to 10 years.

What builder warranties don’t cover

Builder warranties don’t cover components or parts that are covered under a manufacturer’s warranty. For example, if your new oven suddenly stops working and is still under warranty, you will contact the manufacturer, not the home builder.

Builder warranties also generally don’t cover minor defects in drywall, cement, brick and tile. They also don’t cover damage to your home due to weather events like lightning, wind or hail.

» MORE: What does a home warranty cover?

Is a new construction warranty worth it?

Most new homes come with a builder warranty, according to the Federal Trade Commission (FTC), but a new construction warranty might be a good idea if yours doesn't come with one or if the builder warranty isn't comprehensive.

When choosing a home builder, you should ask about the new construction warranty that comes with the property and read over the terms carefully.

“Ultimately, whether or not a home warranty is worth it depends on your situation and budget,” said Jennifer Spinelli, a real estate advisor for The Agency in Tampa, Florida. “Be sure to research and compare the different plans available to find one that fits your needs and budget in order to get the best value.”