6 Things to Look for in a New Home Warranty

One of the big advantages of buying a brand new home is the new home warranty. A custom home warranty gives you peace of mind that the home you’ve designed and built lives up to your expectations. Not all warranties are created equal, however.  Here are the key questions to ask when evaluating a warranty.

1. What Does the Home Warranty Cover?

Coverage can vary widely from company to company and state to state. Be sure to know the specifics of your warranty. Are all your appliances covered, and if not, which ones are? What is included in coverage for the major systems in your home, such as heating, plumbing and electrical? For example, is labor covered and, if so, to what extent? Does the warranty cover replacement for something that cannot be fixed?

2. What Isn’t Covered?

Be sure that you know what isn’t covered on your policy and discuss any additional coverage you would like with your broker before signing for the warranty service. These items may not be covered by home warranties, but likely retain their manufacturers’ warranties:

• Garage door openers
• Sump pumps
• Trash compactors
• Ovens
• Ranges, range hoods and fans
• Refrigerators
• Dishwashers
• Hot water heaters
• Components of the heating system

3. How Easy is it to File a Claim?

Ask about the process of filing a claim and understand what might cause a claim to be denied.

Some common reasons for denying a claim are:

• Code violations
• Faulty installation
• Improper maintenance
• Unusual or excessive wear and tear

Know how to care for your systems and appliances, and keep up with routine maintenance to reduce the need for a claim and to help avoid having a legitimate claim denied.

4. Is There a Service Fee?

The service fee (the out-of-pocket cost you will pay each time you have a claim) typically ranges from $30 to $100.

5. What are the Terms and Conditions?

Be sure to understand all the aspects of the warranty before signing, including whether there are any special provisions you should be aware of.

6. How Long Does the Home Warranty Last?

The length of coverage may vary depending on the component. Sheffield Homes’ warranty covers the following:

• One Year for appliances, equipment and fixtures not covered by manufacturers’ warranties.
• One Year for all other defects, unless otherwise set forth in the Defined Standards stipulated in the Agreement.
• Two Years for plumbing, electrical, heating and cooling systems (excluding appliances, equipment and fixtures covered by manufacturers’ warranties).
• Three Years for major structural defects (MSD) that make the home unsafe or materially decrease its value.

Sheffield Homes provides a walk-through and orientation once the house is ready to be occupied. This gives homeowners the opportunity to identify any issues and learn about all the systems and appliances in the home. Three months later, we check in to make sure everything is satisfactory and to answer any questions. We do this again at the one year mark.

If there are any issues, we encourage homeowners to report them as soon as they occur, so they can be addressed quickly and before they become more serious.

Still have questions? We are happy to help. Call to speak to a Sheffield Homes representative today.