What is Your New Home Warranty Worth?

FLORIDA  

Opinion by:  
E. Eugene Webb PhD

If you are looking to buy a new home here in Florida, you will notice that the builders make a big deal out of their new home warranties. These warranties are often touted for extended terms and providing extra care and protection for your new home.

The fact of the matter is warranties on new construction homes in Florida are barely worth the paper they are written on.

If you are interested in checking out the new home warranty on the home, before you sign that purchase contract go back to the end of the contract.

The home warranty section is usually somewhere near the end of the contract. There will be a little section on home warranties. There they will usually list the name of the company supplying your home warranty.

 Note that it is not the builder supplying the warranty. It is a third-party company supplying the warranty.

You may also be surprised to learn that most home warranty companies do not fix anything themselves. They provide no warranty-related services.
 
Their job is to identify the problem, find out which subcontractor or supplier is responsible for the issue in question and get that subcontractor/supplier to come and fix his work. This is often a long and frustrating process for the new homeowner as construction contractors and subcontractors come and go quite frequently

My suggestion is you copy the name of the warranty company, put it in Google and do a search. If you want to dig even deeper copy the name paste it into Google and then just type the word “complaints” after that.

As you will see if you read the reviews getting something repaired via a new home warranty is often all but impossible.

Once you sign the closing papers all warranty responsibilities are transferred from the builder to the warranty company. Your builder is now essentially off the hook for any problems that may occur.

New home warranties provided by new home builders can vary in terms of coverage and quality. These warranties typically cover the workmanship and materials used in the construction of the home for a certain period, usually ranging from one to ten years.

The specific coverage and terms of a home warranty depend on the builder and the area in which the home is built. In general, home warranties may cover issues such as structural defects, electrical and plumbing systems, heating and cooling systems, and major appliances for a certain period after the purchase of a new home.

It's important to carefully review the terms and conditions of the home warranty provided by the builder to understand what is covered and for how long. Some warranties may have limitations or exclusions, so it's essential to know the specific details.

New home warranty companies can vary in terms of their quality and service. Some homeowners have had positive experiences with home warranty companies, while others have had negative experiences.

Remember, after you close the builder will always put the warranty company between you and them regardless of what the problem may be.

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