Custom Home Builder Warranties: What's Covered and What's Not
A builder warranty is your primary protection against construction defects and workmanship issues after you move into your custom home. Unlike buying an existing house where problems become yours, new construction comes with warranty coverage that holds your builder accountable for defects discovered in the first years of ownership.
However, not all builder warranties are equal. Some Austin custom home builders provide comprehensive coverage with clear terms and responsive service, while others offer minimal warranties with extensive exclusions. Understanding what warranties typically cover, what they exclude, and how long different components are protected helps you evaluate builders and know what to expect.
This guide explains standard warranty coverage, walks through typical warranty periods, identifies common exclusions, and shows you what separates good warranty programs from inadequate ones.
Standard Warranty Coverage Periods
Most reputable custom home builders structure warranties in three tiers:
Year 1: Workmanship and Materials
Coverage: All workmanship defects and material failures
Examples:
Drywall cracks from improper installation
Doors or windows that don't close properly
Plumbing leaks from faulty installation
Electrical issues (outlets not working, switches failing)
HVAC not heating or cooling properly
Flooring installation defects
Cabinet door alignment issues
Caulking failures allowing water infiltration
Response time: Most builders commit to responding within 5-10 business days and completing repairs within 30 days.
What to do: Document everything during your first year. Take photos of cracks, test all systems regularly, and report issues promptly.
Year 2: Major Systems
Coverage: Mechanical, electrical, and plumbing systems
Examples:
HVAC components (compressor, air handler, ductwork)
Electrical panels and wiring
Plumbing supply and drain lines
Water heater installation
Septic system installation (if applicable)
Why two years: These systems have higher early failure rates if installation was defective. A properly installed HVAC that fails in month 18 likely indicates installation issues.
Note: HVAC equipment may have 5-10 year manufacturer warranty covering equipment, while builder's 2-year warranty covers installation quality.
Years 3-10: Structural Defects
Coverage: Major structural components affecting home integrity
Examples:
Foundation settling, cracking, or heaving beyond acceptable tolerances
Load-bearing walls, beams, or columns showing structural distress
Roof structural failure (framing, trusses, sheathing)
Floor joists sagging or failing
What's NOT covered: Cosmetic cracks, minor settling (all homes settle), foundation movement within acceptable engineering tolerances, or damage from poor homeowner drainage maintenance.
Texas requirement: The Texas Residential Construction Commission Act requires builders to warrant structural elements for minimum periods specified in construction contracts, with many standardizing on 10 years.
What Builder Warranties Typically Cover
Construction Workmanship
Warranties cover defects in construction where the home wasn't built according to plans, specifications, or industry standards.
Covered:
Framing not meeting code
Insulation installed improperly
Windows/doors not installed per manufacturer specs
Roofing installation allowing water penetration
Tile installed without proper substrate
Cabinetry not level or secure
Not covered: Cosmetic imperfections within industry tolerance (slight paint variations, minor drywall texture differences, wood grain variations).
Material Defects
If materials are defective (not just poorly installed), builders typically repair or replace them.
Covered:
Defective lumber causing structural issues
Faulty plumbing fixtures leaking from manufacturing defect
Windows with failed seals causing fogging
Roofing materials failing prematurely
Important distinction: The manufacturer warranties the product, but the builder warrants they selected appropriate materials and installed them correctly.
Water Intrusion from Construction Defects
Water leaks from construction defects are covered during applicable periods.
Covered:
Roof leaks from improper flashing
Window leaks from incorrect installation
Plumbing leaks from supply or drain lines
Foundation cracks allowing water penetration
Not covered: Water damage from homeowner neglect (clogged gutters, failure to maintain caulking, landscaping directing water toward foundation).
What Builder Warranties Don't Cover
Normal Wear and Tear
Warranties cover defects, not deterioration from normal use.
Not covered:
Paint fading from normal exposure
Hardwood floor scratches or wear
Carpet wear in high-traffic areas
Caulking drying and shrinking (homeowner maintenance)
Grout cracking from normal building movement
Maintenance expectation: All homes require ongoing maintenance. Warranties don't eliminate your responsibility to maintain finishes and systems.
Landscaping and Site Work
Most warranties exclude landscaping, grading, and site drainage except where it causes structural damage.
Not covered:
Dead plants, grass, or trees
Settling of backfill around foundation (common and expected)
Erosion from natural rainfall
Grading changes from normal settlement
Exception: If inadequate grading causes water to pond against foundation creating structural damage, the resulting structural damage may be covered.
Your responsibility: Maintain positive drainage away from foundation by monitoring grades, keeping gutters clean, and ensuring downspouts discharge 5+ feet from foundation.
Homeowner Modifications or Negligence
Damage from your actions voids coverage for affected components.
Not covered:
Damage from homeowner-installed fixtures
Issues from failure to maintain systems (HVAC filters not changed)
Damage from homeowner's irrigation directing water toward foundation
Problems from DIY repairs
Acts of Nature and External Forces
Not covered:
Storm damage (wind, hail, lightning, flooding)
Fire damage
Freezing temperatures causing pipe bursts (unless pipes improperly insulated)
Insect or animal damage
Your protection: Homeowner's insurance covers these perils. Warranties and insurance work together—warranties for construction defects, insurance for casualty events.
Cosmetic Issues Within Industry Tolerances
Construction trades have accepted tolerance standards. Minor imperfections within tolerances aren't warranty issues.
Not covered:
Drywall cracks under 1/16 inch
Floor flatness variations within 1/4 inch over 10 feet
Minor color variations in natural materials
Small paint imperfections not visible from normal viewing distance
Quality builders: Set their own standards tighter than industry minimums and fix issues even when not technically required.
How to File a Warranty Claim
Step 1: Document the Issue
Before contacting your builder:
Take photos and videos from multiple angles
Measure and describe location precisely
Note when discovered and whether it's worsening
Identify impact (causing damage, affecting function, or purely cosmetic)
Step 2: Review Your Warranty
Check your warranty document:
Is this defect covered?
Are you within the warranty period?
Did you maintain the home according to requirements?
Are there specific claim procedures?
Common requirement: Many warranties require written notice within 30 days of discovering the defect.
Step 3: Submit Written Claim
Your claim should include:
Property address and contact information
Date you took possession
Detailed defect description
When you first noticed it
Photos and documentation
How to submit: Follow the exact process specified in your warranty. Some accept email, others require certified mail.
Step 4: Allow Inspection
The builder must be allowed reasonable access to inspect before determining coverage. You have the right to be present during inspections.
Timeline: Most reputable builders respond within 5-10 business days and schedule inspections within 2-3 weeks.
Step 5: Review and Complete Repairs
Once approved, builder schedules repairs at mutually agreed times. Inspect completed repairs before signing off. Don't accept "we'll come back later" for touch-ups.
Red Flags: Inadequate Warranty Programs
Red Flag 1: No Written Warranty
The problem: Verbal assurances mean nothing without documentation.
What to do: Require written warranty terms before signing a construction contract.
Red Flag 2: Extremely Short Warranty Periods
The problem: Some builders offer only 6-month or 1-year warranties with no structural coverage.
Industry standard: Reputable builders provide 1-year workmanship, 2-year systems, 10-year structural. Anything less suggests lack of confidence.
Red Flag 3: Excessive Exclusions
The problem: Warranties listing more exclusions than covered items, or vague language like "cosmetic issues not covered" without defining cosmetic.
What to look for: Clear definitions with specific examples.
Red Flag 4: No Clear Claim Process
The problem: Warranty doesn't specify how to submit claims, who to contact, or expected response times.
Professional warranties: Include specific contact information, required format, and timeline commitments.
What Mission Home Builders' Warranty Includes
Mission Home Builders provides comprehensive three-tier coverage combining our direct warranty with trusted third-party protection.
Our Three-Tier Structure
Year 1: Mission Home Builders Direct Workmanship Warranty
We personally stand behind all workmanship and materials:
All construction workmanship defects
Material defects not covered by manufacturers
Paint, finishes, and cosmetic items
All mechanical, electrical, plumbing systems
Windows, doors, hardware
Flooring, tile, countertops
Cabinetry installation
Direct access: Call or text Nic or Schuyler directly. No third-party warranty company to navigate.
Years 1-4: Old Republic New Construction Warranty
Your home includes 4-year new construction warranty through Old Republic Home Protection covering:
Major systems (HVAC, plumbing, electrical)
Built-in appliances (if included)
Water heater installation
Ductwork and ventilation
Why third-party matters: If Mission Home Builders closes, retires, or becomes unavailable, your Old Republic warranty remains fully in effect.
Years 1-10: Structure Tech Structural Warranty
10-year structural warranty through Structure Tech covers:
Foundation and concrete work
Load-bearing walls, beams, columns
Structural framing and roof structural components
Floor structural systems
Independent protection: This third-party warranty provides long-term protection backed by an independent company.
How Our System Works
Year 1: Contact us directly. We respond within 5 business days, schedule inspection within 10 business days. Emergency issues (active leaks, HVAC failure) receive same-day or next-day response.
Years 2-4: File with Old Republic or through us. We often handle repairs directly even during Old Republic coverage to maintain quality control.
Years 5-10: File with Structure Tech for structural issues. Independent inspection and engineering if needed.
Why We Use Third-Party Providers
Protection beyond the builder: You're protected even if Mission Home Builders closes, retires, or ownership changes.
Established companies: Both Old Republic and Structure Tech are nationally recognized with decades of experience and strong financial backing.
No additional cost: Coverage is included in your build cost.
We still show up: Even during Years 2-4, we often handle repairs directly rather than forcing you through third-party claims.
Frequently Asked Questions
How long is a typical custom home builder warranty?
Standard warranties provide 1 year for workmanship and materials, 2 years for major systems, and 10 years for structural components. Some builders offer shorter periods—these are red flags during builder selection.
What's the difference between a builder warranty and a home warranty?
A builder warranty covers construction defects and is provided by your builder at no cost. A home warranty is an optional insurance product you purchase separately covering repair/replacement of systems and appliances from normal wear, not construction defects.
Does homeowner's insurance cover construction defects?
No, homeowner's insurance covers casualty events (fire, wind, hail, theft) but excludes construction defects, workmanship issues, and defective materials. Your builder's warranty is your sole protection against construction quality problems.
What if my builder goes out of business?
If your builder closes during your warranty period, you have limited options unless they purchased third-party warranty insurance. Ask about third-party backing before selecting a builder.
Can I hire my own contractor to fix warranty issues?
Most warranties require the builder to perform repairs or approve third-party contractors in advance. If you hire someone without builder approval, you void coverage for that component.
How do I know if foundation cracks are normal or warranty issues?
Hairline cracks under 1/4 inch are normal and typically not warranty issues. Cracks wider than 1/4 inch, growing cracks, differential settlement causing doors/windows not to operate, or cracks allowing water penetration are potential warranty issues. Most warranties cover structural defects but not cosmetic cracking within engineering tolerances.
Ready to Build with Confidence?
Builder warranties are only as good as the builder standing behind them. Mission Home Builders' comprehensive three-tier warranty reflects our confidence in construction quality and commitment to long-term client relationships.
Our custom home building process emphasizes quality at every phase from design through final walkthrough. We back that commitment with responsive warranty service when issues arise.
Ready to discuss your project?
Schedule a consultation to learn about our design-build process and see how our warranty program protects your investment.
