🔧

Home Warranties

What they cover, what they don't, and whether you need one.

New Construction Builder's Warranty

When you buy a new home in Texas, the builder is required to provide warranty coverage under Texas Property Code. This is separate from any optional extended warranty the builder might offer.

1 year: workmanship and materials (roof, doors, windows, cabinets, paint)
2 years: mechanical systems (HVAC, plumbing, electrical)
10 years: major structural defects (foundation, load-bearing walls, roof framing)
Builder must honor these — document issues in writing
Some builders also offer extended warranty options through third-party providers

Key point: Get a home inspection on new construction before closing. Builders make mistakes — and once you close, the warranty clock starts.

Third-Party Home Warranty Plans

These are annual service contracts (not insurance) that cover repair or replacement of home systems and appliances. Common companies include American Home Shield, Choice Home Warranty, and First American Home Warranty.

Typical annual cost: $400–$800/year
Service call fee (deductible): $75–$125 per claim
Covers: HVAC, plumbing, electrical, appliances (dishwasher, refrigerator, oven, etc.)
Does NOT cover: pre-existing conditions, lack of maintenance, cosmetic issues
Repairs use the warranty company's contracted vendors — not your own

What Home Warranties Don't Cover

This is the fine print that trips people up. Home warranties have more exclusions than most people expect.

Pre-existing conditions (this is huge — inspect before buying)
Code upgrades (if a repair requires bringing the system up to current code, you often pay the difference)
Secondary damage (if a plumbing leak damages drywall, the warranty covers the pipe, not the wall)
Improper installation or modification by a previous owner
Cosmetic damage
Pest damage, mold, or structural issues

Seller-Offered Warranty

In a buyer's market, sellers sometimes offer a home warranty as an incentive. It's typically a 1-year plan paid for at closing. While not a substitute for inspections, it can provide peace of mind in the first year of ownership.

Usually ranges from $400–$700 — sellers often agree to include it in negotiations
Effective from the date of closing
You can often transfer or renew at the end of the year
Ask which plan and company the seller is offering — not all are equal

Key point: A home warranty is not a replacement for inspections. It doesn't cover everything, and claims can be denied. Inspect thoroughly first.

Helpful Links & Where to Apply

Official and third-party resources for research and applications — provided for your convenience, not as endorsements. Confirm current terms directly with each provider, and reach out to me anytime for a trusted referral.

Texas Property Code, Ch. 27 (Residential Construction)Your rights on new-construction defects BBB — Research Home Warranty CompaniesCheck ratings & complaints before buying a plan

Questions about what coverage makes sense for your home?

This is what I do — help you understand exactly where you stand before you commit to anything.

Talk to Me About This →