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What Is A Building Warranty

What Is a Building Warranty: Comprehensive Guide

In the landscape of construction and real estate, a building warranty emerges as a beacon of trust and reliability. It bridges the gap between a property owner’s expectations and the assurance a builder offers. This warranty, often a non-negotiable term within property transactions, is not just a feature—it’s a necessity for securing the value of one’s investment.

Definition and Duration of a Building Warranty

Simply put, a building warranty is a legally binding guarantee from the builder to the owner that the property built will perform as intended. This promise covers rectifying any constructional defects that manifest after the completion of the building.

While a typical building warranty spans 10 years for structural defects, coverage for other elements like roofing, cladding, windows, and doors may last anywhere from one to five years.

What Is A Building Warranty

Building Warranties

  • New Home Warranty: When you build a new home, a building warranty can provide peace of mind, knowing that any structural issues will be addressed promptly.
  • Construction Warranty: Construction projects can be complex, and a construction warranty ensures that the builder is accountable for the quality of their work.
  • Homebuilder Warranty: Homebuilders often offer warranties to reassure buyers about the quality of their homes.
  • Warranty Provider: The entity responsible for honoring the terms of the building warranty.

Coverage Details: What Does a Building Warranty Include?

There are typically two main types of building warranties:

  1. Structural Warranty: This warranty covers the structural components of your home, such as the foundation, load-bearing walls, and roof.
  2. Systems and Appliances Warranty: This warranty covers non-structural elements, including HVAC systems, plumbing, and electrical systems.

The scope of a building warranty can be extensive, but here are the key areas:

  • Structural Integrity: It assures that load-bearing elements, foundations, and other structural components will perform their function.
  • Workmanship and Materials: This aspect covers any issues arising from improper installation or subpar materials used within the initial years.
  • Water Ingress: Water ingress is particularly vital for maintaining the building’s envelope, it protects against leaks and moisture penetration issues.
  • Major Systems: Coverage can extend to vital building systems, ensuring that electrical wiring, plumbing, and heating, and cooling systems are defect-free and operational.

What’s Not Covered?

It’s crucial to be aware of what building warranties usually do not cover:

  • Normal wear and tear.
  • Cosmetic issues.
  • Damage caused by homeowner negligence.
  • Natural disasters like earthquakes or floods.

The Importance of a Building Warranty

A building warranty transcends its role as a mere feature of property acquisition. It’s an emblem of security, ensuring that any structural deficiencies are not just identified but rectified without additional costs. For homeowners, it alleviates the worry of unforeseen repairs, while for builders, it represents their integrity and commitment to quality.

Claiming Against a Building Warranty

To claim a building warranty, the defect must be documented and reported within the warranty period. The warranty provider, often an insurance company, assesses the claim against the warranty terms. Once approved, the necessary repairs will be undertaken by the builder or a designated contractor at no extra cost to the homeowner.

The Builder’s Standards and Qualifications

Builders are required to follow stringent standards to qualify for offering a building warranty. This not only includes the construction practices but also the selection of materials and the hiring of competent professionals. These standards serve as a benchmark that assures the homeowner of the property’s compliance with the latest building codes and regulations.

Impact on the Real Estate Market

The effect of a building warranty on property value is profound. A home with a warranty is often viewed as a safer bet, more likely to attract buyers, and secure financial backing from lenders. It’s a sign of a well-built property, which can significantly influence the marketability and resale value of a home.

What Is A Building Warranty

Frequently Asked Questions (FAQs)

How Long Does a Building Warranty Last?

Building warranties typically last for ten years, but the duration can vary depending on the provider and the specific terms of the contract.

Can I Transfer My Building Warranty to a New Owner?

Yes, in most cases, building warranties are transferable to new homeowners. This can be a selling point if you decide to sell your home before the warranty expires.

What Should I Do If I Discover a Problem Covered by My Warranty?

If you encounter an issue covered by your building warranty, contact the warranty provider immediately. They will guide you through the claims process.

Is a Building Warranty Mandatory?

While a building warranty is not mandatory in all regions, it is highly recommended, especially for new construction. Some local regulations may require builders to provide warranties.

Can I Purchase an Extended Building Warranty?

Yes, some providers offer extended warranties for additional coverage beyond the standard term. It’s worth considering if you plan to stay in your home for an extended period.

How Can I Find a Reputable Building Warranty Provider?

To find a reputable provider, do thorough research, read reviews, and ask for recommendations from homeowners who have experience with building warranties.


Ultimately, a building warranty is an indispensable component of the building industry. It’s not merely about fixing problems—it’s about preventing them and ensuring that the building is safe, sound, and built to last. It’s a pledge that supports the industry’s commitment to quality and safeguards the homeowner’s dream of a stable and secure property.

Written By

Hi there! My name is Matt and I write for Expert Home Report. I enjoy writing about everything related to home improvement, home tips and DIY. In my spare time, I'm either spending time with my family, doing a DIY project or learning a new skill.