Compare Home Warranty Options in Virginia
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What Is a Builder Warranty and How Does It Work?
A builder warranty is a guarantee that comes included with your new home purchase. No extra cost, no enrollment required. It protects you against defects in the construction itself: faulty workmanship, substandard materials, and failures in the home's major systems. The coverage is structured in tiers, each with its own time limit, commonly referred to as the 1-2-10 model.
The Standard 1-2-10 Builder Warranty Breakdown
Most new home builder warranties follow a 1-2-10 structure: 1 year for workmanship, 2 years for major systems, and 10 years for structural defects.
| Coverage Tier | Duration | What It Covers |
|---|---|---|
| Workmanship & Materials | 1 Year | Drywall, paint, trim, doors, windows, flooring, roofing materials, improper installations |
| Systems & Distribution | 2 Years | HVAC, plumbing (pipes, drains, vents), electrical wiring, garage door openers, ductwork |
| Major Structural Defects | 10 Years | Foundation, load-bearing walls, beams, girders, floor systems, roof framing, columns, footings |
This tiered structure means your broadest coverage (the stuff you see every day) expires first. By year two, only your built-in systems remain protected. By year three, you're down to structural-only coverage until year ten. Third-party programs like StrucSure's 1, 2, and 10-year combined warranty include coverage for one year on workmanship and materials, two years on the delivery portion of systems (the wiring, piping, and ductwork in electrical, plumbing, heating, cooling, ventilation, and mechanical systems), and ten years on structural components.
2026 State Law Changes You Should Know
Warranty rules vary by state, and a few recent changes matter in 2026:
- Florida (HB 623): Florida House Bill 623, codified as Fla. Stat. § 553.837, created a mandatory 1-year warranty for all newly occupied single-family homes, duplexes, triplexes, and quadruplexes, including manufactured, modular, or factory-built structures, effective July 1, 2025. Under HB 623, builders must provide a one-year transferable warranty covering defects in equipment, material, or workmanship that cause a material violation of the Florida Building Code. The warranty follows the home to the next owner if it sells during the first year, and the clock starts on the earlier of the date of title conveyance or first occupancy.
- Texas (HB 2024): Texas HB 2024 amended Section 16.009 of the Texas Civil Practice and Remedies Code to create a shorter six-year repose period for construction defects in detached one- and two-family homes and townhomes, but only when the builder provides a qualifying written 1-2-6 warranty (1 year for workmanship/materials, 2 years for plumbing/electrical/HVAC systems, and 6 years for major structural components). If the builder does not provide a qualifying warranty, the standard 10-year repose period still applies. Major regional builders like Highland Homes moved to this 1-2-6 structure for DFW contracts signed on or after January 1, 2026.
- New Jersey: During the first year of a new home's warranty, coverage extends to defective systems, workmanship, materials, plumbing, electrical and mechanical systems, appliances, fixtures, equipment, and major structural defects. Homeowners typically must wait 120 days before filing a formal Notice of Claim (except in emergencies or major structural defects).
- North Carolina: Provides a statutory 6-year structural warranty independent of the builder's written contract.
Does a Builder Warranty Transfer If You Sell?
Transferability depends on the builder's specific warranty contract, but is common with third-party backed programs. 2-10 Home Buyers Warranty offers fully transferable warranties, so if the original home buyer sells before the 1, 2, or 10-year coverage is complete, protection can be transferred to the new owner. StrucSure's warranty automatically transfers to subsequent owners during the warranty term upon transfer of title, with no limit on the number of transfers and no cost for the transfer. If your warranty is transferable, the process typically involves:
- Contacting the builder or warranty provider before closing
- Completing a formal transfer form (sometimes called a "Successive Homeowner Transfer and Acceptance" form)
- Providing proof of sale documentation
- Paying any applicable transfer fee (typically $25 to $75, though some plans charge nothing and Florida caps home warranty assignment fees at $40)
A transferable builder warranty can meaningfully boost resale value, so it's worth understanding your specific terms from day one. For more on how warranties factor into home sales, see our guide on home warranties when buying a house or our detailed walkthrough of the home warranty transfer process.
Home Warranty vs Builder Warranty: The Core Differences
While a builder warranty protects against construction defects, a home warranty is an optional service contract you purchase separately to cover breakdowns from everyday use. These two products serve completely different purposes, and understanding that distinction is the key to avoiding costly coverage gaps.
What a Home Warranty Actually Covers in 2026
A home warranty plan typically covers repair or replacement costs for:
- Major appliances: Refrigerator, oven/range, dishwasher, built-in microwave, garbage disposal, washer and dryer
- Home systems: Heating, air conditioning, plumbing, electrical, water heater, ductwork, garage door opener
Basic plans focus on either systems or appliances. Comprehensive plans bundle both and may include add-ons like pools, septic systems, or roof leak repair. According to NerdWallet's 2026 analysis, a home warranty costs about $73 a month on average, or roughly $876 a year, though plans can run anywhere from $28 to $191 per month. ConsumerAffairs pegs typical annual pricing between $350 and $900 for standard plans, with comprehensive plans reaching $1,200 to $1,400. Expect to pay a service fee of $75 to $150 per visit (averaging around $108) whenever a technician is dispatched.
Learn more about how home warranties differ from homeowners insurance to understand how these products layer together for complete home protection. You can also review our full home warranty options guide for current pricing across major providers, or compare the top home warranty companies of 2026 side by side.
What's NOT Covered by Either Warranty
Knowing the gaps is just as important as knowing what's covered. Both builder warranties and home warranties have significant exclusions that can leave homeowners with unexpected out-of-pocket costs.
Builder Warranty Exclusions
| What's Excluded | Why |
|---|---|
| Normal wear and tear or settling | Considered expected over time |
| Appliances (refrigerator, range, etc.) | Covered separately by manufacturer warranty |
| Owner-caused damage or alterations | Builder isn't responsible for post-purchase changes |
| Acts of God (storms, floods, earthquakes) | Outside the builder's control |
| Cosmetic issues (small cracks, minor paint issues) | Below the threshold of a defect |
Florida HB 623 explicitly excludes claims such as appliances or equipment already covered by a manufacturer's warranty, normal wear and tear, normal house settling, damage caused by someone other than the builder or its contractors, and acts of God.
Home Warranty Exclusions
| What's Excluded | Why |
|---|---|
| Pre-existing conditions | Issues present before coverage begins |
| Improper maintenance or neglect | Owner responsibility |
| Rust, corrosion, or environmental damage | Not a mechanical failure |
| Code upgrade requirements | Regulatory costs not covered |
| Non-built-in items or accessories | Must be a permanent fixture |
Neither type of warranty covers damage from floods, earthquakes, or pests. That falls under homeowners insurance coverage. Understanding the full picture helps you avoid paying twice for overlapping coverage or going unprotected in key areas. For a step-by-step walkthrough on how to file a home warranty claim when something does break, our dedicated guide covers timelines, appeal steps, and 2026 workmanship guarantees.
Transitioning From Builder Warranty to Home Warranty
The most dangerous period in a new construction home's life is right after the first year expires. That's when your broadest builder coverage disappears, and if you haven't lined up a home warranty, you're fully exposed on workmanship-related issues and appliance breakdowns.
Your New Construction Coverage Timeline
| Year | Active Coverage |
|---|---|
| Year 1 | Builder warranty: workmanship, materials, systems, structure |
| Year 2 | Builder warranty: systems (HVAC, plumbing, electrical) + structural only |
| Years 3-10 | Builder warranty: structural defects only (or through year 6 in Texas) |
| Year 10+ | No builder coverage. Home warranty is your primary protection |
When to Buy a Home Warranty on a New Build
The ideal time to purchase a home warranty is 1 to 2 months before your one-year builder warranty expires. Here's why:
- Most home warranties have a 30-day waiting period before coverage activates
- Purchasing too late can leave a gap where nothing is covered
- Buying too early is fine because coverage stacks with your builder warranty on items not covered by the builder (like appliances)
For a deeper look at how the home warranty waiting period works and how to avoid a coverage gap, our dedicated guide walks through every major provider's activation rules.
For first-time buyers especially, adding a home warranty early makes strong financial sense. Explore our home warranty first-time buyer guide for more detail on what to look for and when it's worth the cost. If you're weighing whether to skip the warranty and self-insure instead, our overview of home warranties for older homes breaks down the math for aging systems and appliances.
If you want to understand how home warranties differ from extended warranties that come with individual appliances, see our breakdown of home warranty vs extended warranty. You may also want to read our overview of new construction home warranty options tailored specifically for buyers of newly built homes. For a foundational overview, our guide on what is a home warranty walks through the basics, and our tips on negotiating a home warranty in a real estate deal can help you get seller-paid coverage on your next transaction.
Frequently Asked Questions
What is the difference between a builder warranty and a home warranty?
A builder warranty is included with your new home purchase and covers defects in workmanship, materials, systems, and structural components for defined periods (typically 1, 2, and 10 years). A home warranty is a separate, optional annual service contract that covers the repair or replacement of home systems and appliances due to normal wear and tear. Builder warranties protect against construction failures; home warranties protect against breakdowns from everyday use. They are complementary products, not substitutes for each other.
Does a builder warranty cover appliances in a new home?
No. Builder warranties specifically exclude appliances such as refrigerators, ovens, dishwashers, and washers or dryers because those items are covered by the manufacturer's own warranty (typically one year). Once the manufacturer warranty expires, appliances are no longer protected unless you have purchased a separate home warranty that includes appliance coverage. This is one of the most common and costly coverage gaps for new construction buyers to overlook.
When should I buy a home warranty if I have a builder warranty?
You should purchase a home warranty 1 to 2 months before your one-year builder warranty expires. Most home warranty providers have a 30-day waiting period before coverage activates, so timing your purchase in advance ensures there's no gap. You can also buy a home warranty on the day you close, since it will cover appliances immediately and then provide ongoing protection as each tier of your builder warranty expires.
Can I transfer my builder warranty to a new owner if I sell my home?
It depends on the specific builder and warranty terms. Some builders allow one-year and two-year coverage to transfer to a subsequent buyer, while others limit coverage to the original purchaser only. In Florida, HB 623 now mandates that new construction warranties transfer to subsequent owners within the first year of coverage. Typically you'll need to notify the warranty provider, complete a transfer form, provide proof of sale, and possibly pay a transfer fee (often $25 to $75, though Florida caps this at $40 for home warranty assignments).
What happens if my builder goes out of business before my warranty expires?
If your builder goes out of business, any express warranty tied directly to the builder may become unenforceable, but you often still have recourse. If your warranty booklet or closing packet lists a third-party provider like StrucSure Home Warranty, 2-10 Home Buyers Warranty, or Centricity, coverage is insured and remains valid even if the builder goes out of business. Some states also maintain security funds (New Jersey's New Home Warranty Security Fund is one example) that cover repairs if the builder can't. Always confirm your warranty is backed by a third-party insurer, and consult a construction-defect attorney if you need to pursue claims after a builder shutdown.