Understanding Homeowner Warranty (HOW): Protection for Your Home

Definition & meaning

A homeowner warranty, often referred to as a Homeowner's Warranty (HOW), is a service contract designed to provide protection for the original homeowner of a newly constructed home. This warranty typically covers major structural defects for a period of ten years. Additionally, it includes coverage for the repair and replacement of essential home appliances, such as heating and air conditioning systems, dishwashers, plumbing, and electrical systems, that may break down due to normal wear and tear during the coverage period. The warranty outlines the responsibilities of both the builder and the homeowner, and it is common for buyers to request that sellers pay for this warranty as part of the home sale process. However, certain exclusions apply, including damage from fire, natural disasters, explosions, riots, falling objects, and any alterations made to the property by individuals other than the builder.

Table of content

Legal use & context

Homeowner warranties are primarily used in real estate transactions and construction law. They serve as a safeguard for homeowners against unexpected repair costs related to structural defects and appliance failures. This term is relevant in civil law, particularly in cases involving property disputes or claims against builders for failing to meet warranty obligations. Users can manage aspects of homeowner warranties through legal forms and templates provided by services like US Legal Forms, which can help in drafting agreements or claims related to warranties.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A homeowner discovers a significant crack in the foundation of their newly built home five years after purchase. Under the homeowner warranty, they can file a claim with the builder to repair the defect, as it falls under structural coverage.

Example 2: A homeowner's air conditioning unit stops working due to normal wear and tear. The homeowner can request repairs under the warranty, provided the appliance is covered and the warranty is still active.

State-by-state differences

State	Variation
California	Homeowner warranties are often required by law for new constructions.
Texas	Warranties may vary based on the builder's policies and local regulations.
Florida	Specific disclosures about warranties must be provided to buyers.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition
Homeowner Warranty	Covers structural defects and certain appliances for a specified period.
Builder's Warranty	Specific to the builder's obligations, often limited to defects in workmanship.
Home Warranty	A service contract covering repairs for home systems and appliances, typically not structural.

Common misunderstandings

What to do if this term applies to you

If you are a homeowner and believe you need to utilize your homeowner warranty, follow these steps:

Review your warranty documentation to understand your coverage and obligations.
Contact your builder or warranty provider to initiate a claim for repairs.
Document any issues with photographs and written descriptions to support your claim.
Consider using US Legal Forms to access templates for warranty claims or related documents.
If your situation is complex or disputed, consult a legal professional for assistance.

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Quick facts

Typical coverage duration: Ten years for structural defects
Common exclusions: Fire, natural disasters, and negligence
Obligations: Builder must repair or replace covered items; homeowner must maintain property
Claim process: Must follow specific procedures outlined in the warranty