Builder Warranties Gain Importance for New-Home Buyers

Amid high prices, limited inventory and elevated borrowing costs, homebuyers are increasingly seeking the predictability of new construction and written builder warranties. Unlike homeowners insurance, which generally covers losses such as accidents, disasters and theft, a builder warranty is intended to cover construction materials and workmanship for a specified period. Buyers should not assume a new home automatically includes an express warranty: there is no nationwide federal requirement, state protections vary, and implied warranties recognized in many states offer a separate, more limited safeguard that a home be safe and fit to live in.