In order to attract new home buyers, builders and real estate agencies may offer home warranties. Builders are usually required by law to provide warranties covering new homes against certain defects. If a home warranty isn’t offered directly by the builder, it’s really a service contract that usually covers heating and electrical systems. Structural things like the home’s foundation can only be covered by the builder’s home warranty.

Repairs to Your Home’s Foundation

Foundation repairs range from do-it-yourself weekend projects to huge events that require a premium cost. For instance, a foundation crack that is less than 1/4-inch wide can be left alone or filled in with putty silicone caulk. Foundation cracks larger than 1/4-inch or the cracks that look like stair-steps indicate serious issues that need to be addressed.

Only Builder Warranties Cover Foundations

Are you asking yourself, “Do home warranties cover foundations?” You should know that homebuilder warranties and service contracts offered by real estate agencies differ in a few ways. Builder warranties usually last up to a year after purchasing the new home. They typically encompass cracks in the foundation, wiring problems, and plumbing defects. Once the first year is over, builder warranties are usually bound to structural issues that pose health or safety concerns.

Home Warranties Cover System Repairs

Home warranty service contracts usually don’t cover cracks in the foundation of the home. At the minimum, they cover air conditioning units, water heaters interior plumbing, and HVAC ductwork. They may also cover built-in appliances. It may also be possible to get additional protection from home systems for a premium price.

The Law in Regards to Major Structural Defects

The Federal Trade Commission requires all home builder’s warranties to encompass all workmanship and materials used in the construction of new homes. Although they can, the warranties don’t cover small cracks in brick, cement or drywall. When it comes to the health and safety of the occupants of the home, most builders have warranties of up to 10 years for major structural issues. If the foundation is cracking or there is some other major issue, it’s important to contact the builder immediately.

You Need Whole-House Protection

The builder’s warranty terms of service contract determine how certain claims are made. You should read your warranty service contract to make sure your home’s foundation is protected. Want even more peace of mind? Take a look at some of the top home warranty companies for reimbursement on repairs or replacements for some of the most important items in your home.