Many builder warranties follow a 1-2-10 pattern: about one year on workmanship and materials, two years on plumbing, electrical and HVAC systems, and up to ten years on major structural defects. A home warranty is a different product, an optional service contract. Read your builder's warranty for exact terms.
The common 1-2-10 structure
Every builder's warranty is different, and this is general, not any one company's terms. The FTC describes the typical pattern:
| Period | What's usually covered |
|---|---|
| About 1 year | Workmanship and materials on most components, like siding, doors, trim, drywall and paint |
| 2 years | Plumbing, electrical and HVAC systems |
| Up to 10 years | Major structural defects, which the FTC describes as problems that make a home unsafe |
What does a 10-year building warranty cover?
Major structural defects. That generally means failures of load-bearing parts of the home, like the foundation, framing or roof structure, serious enough to make the home unsafe. It doesn't usually cover cosmetic issues like small cracks.
The details, including definitions and limits, are in the warranty document itself. Read it before closing.
What builder warranties usually don't cover
The FTC lists common exclusions:
- Out-of-pocket costs, like temporary housing during repairs
- Household appliances, which usually carry manufacturer warranties instead
- Small cracks in brick, tile, cement or drywall
- Components covered by a manufacturer's warranty
Is a builder's warranty the same as a homeowners warranty?
No. A builder's warranty comes with your new home and covers defects in how it was built. A "home warranty" is actually a service contract, an optional product you buy, usually for existing homes, that covers repair or replacement of things like appliances and air conditioning. The FTC says it plainly: service contracts are not warranties.
On a new home, a service contract may duplicate coverage you already have. Compare before you buy one.
Does FHA require a 10 year warranty on new construction?
Not in every case. Under HUD's FHA handbook, a home that's under construction or completed less than a year ago is generally limited to a 90% loan-to-value unless it meets HUD's pre-approval requirements or is covered by a HUD-accepted insured ten-year protection plan. A ten-year plan with a final inspection is also one of the ways a lender can document a newly built home.
Your lender will know which applies to your loan.
How to file a claim the right way
The FTC recommends:
- Confirm the item is covered and still within its coverage period.
- Follow the warranty's claim steps. Even if there's a phone line, put the request in writing.
- Consider certified mail with a return receipt for important claims.
- Keep records of every message and call.
If there's a dispute, many warranties require mediation or arbitration. The FTC notes that arbitration decisions are usually final.
Questions to ask before you sign
- What does the warranty cover, and for how long?
- Who handles claims, the builder or a third-party company?
- Is there a walkthrough near the end of the first year?
- How do I submit a request, and how fast is the response?
- Can I see the full warranty document now?
Who's writing this. I sell new homes for D.R. Horton at Collins Ridge in Hillsborough, so I represent the builder, not you. This guide is general education from my years on job sites and in sales. It isn't legal, tax or lending advice, and it doesn't describe any specific home, price or incentive. Check the sources linked below, and talk with your own lender, agent or attorney before you decide.
Sources
- Warranties for New Homes, Federal Trade Commission
- HUD Handbook 4000.1, II.A.8.i New Construction, excerpt of the U.S. Department of Housing and Urban Development FHA handbook