New Home Builder Warranty: What It Covers and How to Claim

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Buying a newly built home often comes with a reassuring promise: if something goes wrong, the builder will fix it. That promise is the builder warranty, and the details matter more than most buyers realize at the closing table. A new house warranty usually covers workmanship for a short period, major systems for a bit longer and structural defects for many years, but each tier has its own definitions, exclusions and claim procedures. Buyers who understand those rules, keep good records and schedule an inspection before the first-year coverage ends are far more likely to get problems fixed at the builder’s expense. This guide explains how builder warranties are commonly structured, what they typically exclude, how to file claims, why the 11-month inspection matters, how builder warranties differ from home warranty plans and what options exist in Colorado when a dispute cannot be resolved. It is general information, not legal advice; the warranty document itself controls.

Part of our Home Inspections Explained guide — start there for the full picture →

What Does a New House Warranty Cover?

A builder warranty is a written promise from the builder, sometimes backed by a third-party warranty company, to repair defined defects in a new home for set periods after closing. Many builders use a tiered structure often described as “1-2-10.” The exact terms vary by builder and by warranty provider, so treat the following as a typical pattern rather than a rule:

• About one year for workmanship and materials. This tier often covers items such as drywall, trim, paint, doors, windows, cabinets, countertops, flooring and fixtures that do not meet the builder’s stated performance standards.
• About two years for major systems. This tier often covers defects in the plumbing, electrical, heating, ventilation and air conditioning distribution systems, such as supply lines, drain lines, wiring and ductwork.
• About ten years for structural defects. This tier usually covers major structural defects in load-bearing elements, such as foundations, beams, columns and load-bearing walls, and is often defined narrowly, for example as damage that makes the home unsafe or unlivable.

Appliances, water heaters, furnaces and similar equipment are often covered separately by their manufacturers’ warranties rather than by the builder. Buyers should collect those warranty documents, register products when required and note expiration dates.

Performance standards define a “defect”

Most builder warranties include tolerances or performance standards that spell out what counts as a defect. A warranty might say, for example, that a drywall crack wider than a stated measurement or a floor out of level beyond a stated amount over a given span is covered, while smaller variations are considered normal. Reading these standards before closing helps set expectations and makes claims more precise.

What Builder Warranties Usually Exclude

Exclusions are where many disappointments begin. Common categories include:

• Routine maintenance. Caulking, grout, filter changes, gutter cleaning and adjusting doors as the house settles are often the homeowner’s responsibility.
• Normal settling and shrinkage. Minor drywall cracks, nail pops and small concrete cracks within the warranty’s tolerances are often treated as expected.
• Landscaping and drainage changes. Plants, sod and grading changes made by the owner are often excluded. Altering grading or adding beds against the foundation can affect coverage for related water problems.
• Homeowner damage and modifications. Damage from misuse, neglect or alterations by the owner or their contractors is typically excluded.
• Consequential damage. Some warranties exclude damage to personal property or living expenses caused by a covered defect.
• Items covered by other warranties, such as appliances and some equipment.
• Conditions caused by weather or natural events, such as hail, which are usually homeowners insurance matters.

The Federal Trade Commission’s consumer guidance on warranties offers a useful rule of thumb that applies here: if specific parts or repairs are not listed as covered, assume they are not covered. The FTC also notes that spoken promises should be put in writing, because a business may later refuse a service that was never documented. If a sales representative promised that the builder would fix something specific, get it in an addendum before closing.

Front Range soils and the structural tier

Parts of the Denver metro, Colorado Springs and northern Front Range have expansive clay soils that swell when wet and shrink when dry. Builders in these areas often use engineered foundations and specific grading and drainage requirements. Owners can unintentionally create problems by installing sprinklers or planting beds that keep soil next to the foundation wet. Following the builder’s drainage and landscaping guidelines protects both the house and warranty coverage, and structural tier definitions may be narrower than owners expect.

How to File a Builder Warranty Claim

Each builder has its own procedure, but the most successful claims share a few habits.

1. Read the warranty booklet. Note who to contact, whether requests must be written, any online portal and the deadlines for each coverage tier.
2. Report problems promptly and in writing. Even if a phone call starts the process, follow up by email or the portal so there is a dated record.
3. Be specific. Describe the location, when it was first noticed and whether it is getting worse. Reference the warranty’s performance standard when possible.
4. Include photos and measurements. A crack with a ruler or a level reading on a sloping floor is more persuasive than a general description.
5. Batch non-urgent items if the builder prefers periodic service visits, but report urgent items such as active leaks, electrical hazards or loss of heat immediately.
6. Keep a log of each request, response, appointment and repair, including the names of technicians and dates.
7. Confirm completion. After a repair, note whether the problem was resolved and follow up in writing if it was not.

The FTC’s warranty guidance also recommends keeping a copy of the warranty and the proof of purchase. For a new home, that means the warranty booklet, closing documents, any addenda, appliance manuals and registration confirmations, stored together where they can be found years later.

Don’t wait out the clock

Issues reported before a coverage tier expires are generally handled under that tier even if the repair happens later. Issues first reported after expiration may not be. That is the core reason for scheduling an independent inspection near the end of the first year.

The 11-Month Inspection Before Workmanship Coverage Ends

An 11-month inspection is an independent home inspection performed shortly before the one-year workmanship coverage expires. Its purpose is to find defects while the builder is still responsible for repairing them. A home that seemed perfect at the final walkthrough often reveals issues after a full cycle of seasons: drywall cracks, sticking doors, grading that slopes toward the house, attic insulation gaps, missing flashing details or plumbing drips under sinks.

The guide to 11-month home inspection cost covers typical pricing and what the report includes. Buyers who are still under contract can also consider phased inspections during construction; the overview of new construction home inspections explains pre-drywall and final inspections, which can catch issues before walls are closed.

A few practical tips for the 11-month inspection:

• Book it around month 10 so the report arrives with time to submit claims before the deadline.
• Share the report with the builder through the official warranty channel and keep a copy of the submission.
• Focus on covered items. Group findings by the warranty’s tiers and performance standards rather than sending a long list of cosmetic notes.
• Recheck before the two-year mark for systems items, if the warranty includes that tier.

Expectations matter. Under the American Society of Home Inspectors (ASHI) Standard of Practice, a home inspection is a visual evaluation of readily accessible systems and components. Inspectors are not required to provide engineering analysis, determine compliance with codes or offer warranties or guarantees. For suspected structural defects, a licensed structural engineer may be needed to support a structural-tier claim. When choosing an inspector, the home inspector hiring guide outlines questions to ask, including experience with new construction.

Common Year-One Issues Worth Reporting

New homes are built quickly, often by many subcontractors working in sequence, and some issues only appear after the house has been lived in through heat, cold, dry air and spring moisture. Owners who know what to watch for can report problems early, while coverage is clearly in effect.

Interior finishes

Lumber and drywall dry out and shrink during the first heating season, especially in Colorado’s dry winter air. Nail pops, corner cracks, gaps at trim and doors that rub or will not latch are common. Many are minor and fall within tolerances, but recurring or widening cracks deserve a note and a photo with a date.

Plumbing and water

Slow drips under sinks, loose fittings behind toilets, poorly sealed tub and shower surrounds and inadequately sloped drain lines are frequent first-year findings. Any active leak should be reported immediately, both to limit damage and because water problems can lead to mold if materials stay wet. The U.S. Environmental Protection Agency advises drying water-damaged areas and items within 24 to 48 hours to prevent mold growth, so shut off the supply valve, dry what you can and document the damage before waiting on a service appointment.

Heating, cooling and ventilation

Rooms that never reach a comfortable temperature, disconnected or crushed ducts in the attic, noisy registers, and bath fans that vent into the attic rather than outside are worth checking. Comparing room temperatures on a cold morning can reveal distribution problems.

Exterior and drainage

Watch where water goes during the first heavy rain and spring snowmelt. Soil that settles next to the foundation, downspouts that discharge too close to the house, cracked flatwork, missing kick-out flashing at roof-wall intersections and gaps around window trim are all common items. On the Front Range, settled backfill can reverse the grade near the foundation within the first year, which matters for both basements and expansive soils.

Attic and insulation

Uneven insulation depth, insulation pushed away from eaves, uncovered attic hatches and gaps around recessed lights or plumbing penetrations can show up as frost in the attic or uneven room temperatures in winter.

Questions to Ask About a Warranty Before Buying

Buyers comparing new-build communities often focus on floor plans and finishes, but warranty terms can differ meaningfully between builders. Questions worth asking the sales office, in writing where possible:

• Who administers the warranty: the builder directly or a third-party company?
• How long does each coverage tier last, and how is a structural defect defined?
• Where can the full warranty booklet and performance standards be read before signing?
• How are requests submitted, and what are typical response times?
• Does the builder offer scheduled service visits, such as at 60 days and 11 months?
• Is coverage transferable if the home is sold during the warranty period?
• Are independent inspections allowed during construction, and at what stages?

Clear answers, and a builder willing to put them in writing, are good signs.

Builder Warranty vs Home Warranty Plans

The names sound similar, but these are different products.

Builder warranty

Included with the purchase of a new home. Covers defects in construction, meaning workmanship, systems installation and structure, for defined periods. The builder or its warranty provider is responsible for repairs.

Home warranty plan

A separately purchased service contract, usually renewed annually, that helps pay for repair or replacement of covered systems and appliances that fail from normal wear and tear. Plans typically charge a service fee per claim and include coverage limits and exclusions. The guide to home warranty plans explains how they work and what to compare.

The FTC notes that extended warranties and service contracts cost extra and are separate from any warranty that automatically comes with a product, and that they may cover the same repairs for the same period as an existing warranty. For a brand-new house, that overlap is worth considering: new appliances and systems usually have manufacturer warranties, and the builder warranty covers installation defects. The FTC suggests looking at total costs, including per-service fees, the reputation of the company providing coverage, coverage limits and the claims process before buying any service contract. Some buyers find a plan more useful once builder and manufacturer coverage begins to expire.

When Claims Stall: Colorado Disputes and Defect Claims

Most warranty issues are resolved through the builder’s service department. When they are not, homeowners typically have escalating options:

• Escalate within the builder. Ask for a warranty manager or regional customer care contact, and summarize the history in writing.
• Use the third-party warranty company, if one backs the structural tier, following its claim and dispute procedures.
• Review the dispute clause. Many warranties and purchase agreements require mediation or arbitration before litigation.
• Get independent documentation. An inspector’s report, an engineer’s evaluation or contractor estimates can clarify scope and cost.

Colorado has a statutory process for construction defect claims that generally requires notice to the builder and an opportunity to inspect and respond before a lawsuit is filed, along with time limits for bringing claims. These rules are technical and can interact with warranty terms and arbitration clauses. Homeowners facing a significant defect, especially structural or water intrusion problems, should consult a Colorado attorney experienced in construction defect matters early rather than waiting until deadlines approach.

A Simple New-Home Warranty Calendar

1. Before closing: read the warranty booklet, request any promised items in writing and consider a final inspection.
2. At closing: collect warranty documents, appliance manuals and the builder’s maintenance guide.
3. First 30 to 60 days: register appliances and equipment and start a warranty log.
4. Months 1 to 10: report issues as they appear, with photos.
5. Around month 10 to 11: schedule an independent inspection and submit findings before the workmanship tier ends.
6. Around month 22 to 23: review systems items before the systems tier ends, if applicable.
7. Ongoing: follow maintenance and drainage guidelines and watch for structural warning signs such as widening cracks or doors that suddenly bind.

A builder warranty is valuable, but only if it is used on time and with clear documentation. A little organization in the first two years can prevent a long, expensive dispute later.

References

• Warranties — Federal Trade Commission
• Extended Warranties and Service Contracts — Federal Trade Commission
• ASHI Standard of Practice for Home Inspections — American Society of Home Inspectors
• A Brief Guide to Mold, Moisture and Your Home — U.S. Environmental Protection Agency

Approaching the end of your first year in a new Front Range home? An independent 11-month inspection can document issues while the builder is still on the hook. Contact us to be connected with a local inspector.