How Long should a builder warranty be?

Builders are required in most states to offer a warranty on new homes—usually this is a structural warranty that covers defects and craftsmanship. Providing such a warranty isn’t just about complying with state laws, though. It gives your homebuyers peace of mind knowing that you stand behind your construction, and it can often be a selling point to potential buyers as well.

If you operate in the United States, odds are that you are required to offer a warranty—but how long does a builder need to warranty a home? What is the minimum term required? While there are a number of different types of home warranties and different requirements from one state to the next, we provide some general guidance to answer this question below.

In this blog post, we’ll discuss:

Understanding Builder Warranties State-by-state

Requirements for builder warranties differ from state to state, so it’s important to understand the laws in your state before offering any warranties to your customers. For example:

  • Some states don’t require builders to warranty homes at all
  • Other states require a 1-2 year warranty
  • Some states mandate a 5-year builder warranty
  • Finally, others require a full 10-year builder warranty for all new homes

To find out the requirements in your state, check the relevant state and local laws or contact a qualified attorney with experience in construction or real estate law.

Why offer a 10-year builder warranty to home buyers

Regardless of what your state requires home builders to offer buyers in terms of builder warranties, it makes financial sense to offer a full 10-year builder warranty from a reputable home warranty company. There are a number of reasons to offer all of your buyers a full 10-year builder warranty on their new homes. 

First, it provides them with peace of mind knowing that you stand behind your work. Purchasing a brand new home can be nerve-wracking; while there aren’t quite as many worries as buying a fixer-upper, not all home builders are created equal and buyers know this. A 10-year builder warranty is a sign of quality and it gives your buyers the assurance that if something goes wrong, they won’t be stuck paying for repairs all by themselves.

Second, it offers you protection from potential liabilities related to construction defects. Depending on the state you’re in, there may be hefty fines associated with any warranty disputes or claims brought against you. A home warranty also means that you’re not left footing the entire bill for any repairs needed due to a defect that may not be your fault. In other words, sometimes the unexpected happens and when it does, a quality builder warranty will offer you protection.

Finally, offering a 10-year builder warranty can be an attractive selling point for buyers who are considering different homes and builders. It’s an excellent marketing tool that will demonstrate to potential buyers that you take your work very seriously and, again, that you’re prepared to stand behind the homes you build. 

No matter what state you’re in, offering a 10-year builder warranty is something every home builder should strongly consider. If nothing else, it will give your customers peace of mind knowing that they have coverage for any potential issues that may arise. 

the bottom line

Builder warranties are a must for any home builder, no matter what state they’re in. Offering a 10-year builder warranty is an excellent way to protect your customers from potential defects, provide them with confidence in their purchase, and demonstrate that you take your craftsmanship seriously. 

Investing in a quality home warranty is an investment not only for your business, but for your customers as well. All QBW warranties offer coverage for 10 years. Consult with the My Coverage App to check your specific warranty coverage, or learn more on our website.