The Benefits of a Written Warranty

Why Would a Home Buyer Need a Written 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 a person will ever have. It makes sense that the buyer would also expect such a large purchase to include a substantial warranty on the quality of the materials, workmanship and structure of their new home. Whether you are building a new home or you are remodeling an older home, providing the benefit of a structural warranty on the work you do is smart planning.

Provide a Written Warranty on New Construction

Why is a Structural Warranty Necessary?

As you construct a new home or remodel an existing one, your buyer trusts that when you lay the foundation, pour the walls, build the framing, install the electrical, connect the plumbing, hang the drywall and other structural components, you are doing high-quality work. Some Builders only give a verbal guarantee to fix anything that goes wrong or offer their own one-year warranty. But if the Builder does not offer a written warranty, with specific coverages, the buyer has no tangible protection in the event that something goes wrong. In addition, the Builder has no limit on what a Home Owner may ask to be repaired. In contrast, a written warranty clearly enumerates what is and is not covered, how long coverage lasts 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 what your responsibilities are, what is covered, and what to do if something malfunctions.

What Does a 10-Year New Home Warranty Provide?

In the standard 2+8 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 Home Owner’s responsibility after the first year. In the remaining 8 years, the Warrantor covers specific structural components, listed in each individual warranty. If the buyer is using any sort of HUD, FHA or VA financing, the Builder will need to provide a warranty from 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 renovating an older home or building an addition, such as a sunroom. During the 1st year, the remodeling warranty covers issues with workmanship or materials. The Remodeler is responsible for these repairs. Again, the warranty very specifically enumerates what constitutes a covered repair and what is routine Home Owner 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 Home Owner 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 doing. Keep in mind that the Remodeling and Addition Warranty only covers the new portion of the home, not the existing structure.

Who Pays for the Home Warranty?

The Builder provides the warranty as part of his or her superior service. If you are a member of the American eBuilder family, that means that we have verified and screened you to ensure that you do top-quality work. Home Owners may not purchase a warranty themselves, as a Builder must agree to the 1st year, or in some cases 2, of needed repairs. However, Home Owners 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-$800 – although the warranty cost will vary, depending on such factors as the sale price of a home.

A home owner reading his written warranty

How Does the Home Owner Get Warranted Service?

The warranty booklet will provide details on who, how and when the Home Owner should notify the Builder or the Warrantor about an issue. In addition, in the case of our company, American eBuilder, the Service tab on our Home Owner website ( allows the Home Owner to submit a service request online. In general, for the first 1 or 2 years, the owner should contact the Builder. For years 3 – 10, he or she should contact the Warrantor directly.

What if the Home Owner Resells the Home Before the Warranty Expires?

10-Year Structural Warranties are normally transferable. Because the warranty covers the structure at a specific address, even if the Home Owner sells the home and new owners need an issue repaired, the Warrantor will honor the warranty. It’s important for the re-seller to give the new owners the 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.

Closing the deal with a written warranty

About Us:

American eBuilder, for Builders, and American eWarranty, for Home Owners, have been providing new home warranties across the US for over 13 years. We serve Home Buyers, 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 Home Owners. 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 buyers. Home Owners 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 buyer avoid the pitfalls that are often associated with verbal promises or statements between the parties. The Home Owner knows up front exactly what will be covered by the warranty, for what duration and what is considered Home Owners’ maintenance. With an American eWarranty limited written warranty, Builders and Home Owners alike find comfort in its arbitration provision. If an impasse arises between a Home Owner 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 buyer and Builder.

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