Everything You Need to Know About New Home Warranties

One of the biggest benefits of buying a new home in New Jersey is that every new home in the state comes with a warranty. Which as any homeowner will tell you, is worth its weight in gold!

Let’s take a closer look at what new home warranties cover, how long they cover you for, and the other details you need to know.

Will I Get a Warranty?

Yes. If you buy a new home in the state of New Jersey, it is a legal requirement that your homebuilder provide you with a warranty when the sale closes. They will usually provide you with a booklet that outlines all of the rights and responsibilities related to your warranty too. In the unlikely event that this does not happen, you can contact the state to assist you in getting the information about your warranty.

What Does the Warranty Cover?

It is important to remember that this is a warranty, not a blanket guarantee. It does not cover accidents, malicious damage or damage by the owner. Nor does it cover anything that you would normally claim from insurance for. However, it does provide protection against defects in the design, construction and materials used. Here are the basic coverage periods:

• Materials and workmanship are covered for 1 year. This does not include any manufacturer specific warranties, which may cover specific materials for longer.
• Plumbing, electrical and HVAC are covered for 2 years for design and installation related defects. Again, any defects with the actual equipment that are related to the manufacturer and not your builder will still fall under that warranty, and not your home warranty.
• Structural defects are covered for ten years.

Is a New Home Warranty Transferable?

It is not common for new homes to be bought and sold within the first few years of ownership, but every once in a while, it does happen. The good news for you and your buyer is that the new home warranty you received when you purchased the home is transferable, as long as the correct procedure is followed.

When to Use Your Warranty

One of the most important things to remember regarding your new home warranty is that it should not be your first step when something goes wrong. It is very rare for anything covered by your warranty to go wrong, if you worked with a good homebuilder. If you suspect something may be covered, first seek advice from an expert. Call a plumber, electrician, HVAC technician or sub trade specialist to have them assess the problem. Remember that your warranty only covers defects that are caused by builder error. If your problem is determined to be caused by action or omission of your builder, then it is time to claim.

Buying Peace of Mind

A new home warranty is just one more reason why buying a new home in New Jersey may make more sense for your family. The added peace of mind that they offer is definitely another big reason to choose new.