Last reviewed: 3 October 2026
Home › Home warranties (US) › Builder warranties on new homes
United StatesWhat warranty does a new-construction builder owe me in the US?
A builder warranty comes with a newly built home. A home warranty is a separate service contract you buy. This page reports what the FTC says about builder warranties in general. It does not give a state-by-state list, because the FTC page does not describe individual states.
The short answer
- What it is: the FTC says "A builder warranty comes with new home construction or a remodel." It covers items that are typically a permanent part of the home. Most newly built homes come with one.1
- Typical periods: workmanship and materials on most components usually expire after one year. HVAC, plumbing and electrical systems are generally covered for two years. Some builders give up to 10 years for "major structural defects."1
- Different from a home warranty: a home warranty "is really a service contract, and costs extra," and typically applies to existing homes.1
- Your state matters: the FTC says to contact your state or local builders' board for more information.1
Builder warranty vs. home warranty
A builder warranty is a promise from the builder, or from a company the builder buys coverage from, about the new home. A home warranty is a different product. The FTC says it is "really a service contract," costs extra, "typically applies to existing homes," and covers "replacements and repairs on items like appliances or air conditioning systems." You decide whether to buy one.1 See our hub on home warranties (US).
The FTC's coverage section, which is about new homes, says "Many home warranties are backed by the builder," and that builders may also buy warranties from third-party independent companies. It says the FHA and VA "require builders to buy third-party warranties" to protect buyers of newly built homes with FHA or VA loans.1
What is covered, and for how long
The FTC says builder warranties "generally offer limited coverage on workmanship and materials for specific components of the home, like windows, heating, ventilation and air conditioning (HVAC), plumbing, and electrical systems." Warranties "usually spell out how repairs are made," and the length of coverage "varies depending on the component of the house."1
| Period | What the FTC says |
|---|---|
| One year | Coverage for workmanship and materials on most components "usually expires after the first year." Examples: siding and stucco, doors and trim, drywall and paint.1 |
| Two years | Coverage for HVAC, plumbing and electrical systems "is generally two years."1 |
| Up to 10 years | Some builders give coverage "for up to 10 years" for "major structural defects," sometimes defined as problems that make a home unsafe and put the owner in danger. Example: a roof that could collapse.1 |
What is typically not covered
The FTC says most new home warranties do not cover out-of-pocket costs from a major construction defect or warranty repair, such as the cost of moving out and living elsewhere during repairs. Builder warranties also usually do not cover household appliances, small cracks in brick, tile, cement or drywall, and components covered under a manufacturer's warranty.1
How the federal Magnuson-Moss rule treats building materials
A separate federal rule says that when a consumer contracts with a builder to construct a home, an addition or similar realty, the building materials "are not consumer products." Separate items of equipment attached to the realty, such as air conditioners, furnaces and water heaters, are consumer products under the Act.2 That rule is about the federal warranty law's scope. It does not describe a builder's state-law duties. See our guide on the Magnuson-Moss Warranty Act.
Making a claim
- Check the warranty to make sure the problem is covered. Pay particular attention to the length of specific types of coverage.1
- File your claim using the instructions in your warranty.1
- Even if there is a hotline for urgent requests, put your repair request in writing. The FTC suggests certified mail with a return receipt so you have proof the company got your letter.1
- Keep a record of your correspondence and conversations with the company.1
If there is a dispute
The FTC says many new-home warranties "offer or require mediation and arbitration for disputed warranty claims." In mediation, a neutral third party helps both sides, but they must reach an agreement themselves. If mediation fails, a homeowner would likely have to submit the claim to arbitration instead of going to court. Most warranties require both sides to accept the arbitrator's decision, without appeal.1
The FTC adds that if your loan is financed through the FHA or VA and you file a claim against the third-party warranty company, you can choose between arbitration and court. If you choose arbitration, you are bound by the decision.1 The FTC says you can expect to pay up to several thousand dollars to take a claim through arbitration, depending on its complexity. Check who pays what in your warranty.1
What this page does not cover
The FTC page does not list state rules, so we do not give a state-by-state table. Our guides cover two states: Louisiana's New Home Warranty Act and Oregon's home warranty regulation. For how Canada differs, see US vs. Canada warranty regulation.
Where this fits in our standard
Point 1 of our standard asks whether contract terms and exclusions are available in plain language before purchase. The Register shows how we check providers. It describes a method, not a recommendation of any builder or warranty company.
How to verify this yourself
- Read the FTC's Warranties for New Homes page (reference 1) and 16 CFR 700.1 (reference 2).12
- Read your builder warranty. Find the coverage periods for each component, the exclusions, the claim steps, and whether it requires mediation or arbitration.
- The FTC says to contact your state or local builders' board, and, with an FHA-insured loan, the nearest HUD field office, or for a VA loan, the nearest VA office.1
What this page is not
This is general information, not legal advice. It reports the FTC's general description of builder warranties. Actual coverage depends on your warranty and your state's law, which this page does not describe. It does not assess any builder or warranty company.
What to do next
Read the builder warranty you were given and note each coverage period and the claim steps before you need them. Then check your state with its builders' board or consumer protection office. Return to the home warranty hub.