Home Warranty vs. Home Builders’ Warranty

What is a Builder’s Warranty?

So, let’s start with understanding what a builder’s warranty is.

A builder’s warranty period can last for up to 10 years of coverage, but will ultimately depend on what features your home has. A two-year warranty coverage will most likely larger items like home systems (plumbing, HVAC, etc.) whereas a shorter warranty period will often cover smaller items like materials.

Home Warranty v/s Home Insurance

A builder’s warranty is a temporary type of coverage provided by the builder or a third-party and is designed solely for new home construction or remodels. With this coverage, material issues and in-home systems provided and installed by the construction team themselves are typically covered.

Each builder’s warranty will also differ depending on the builder, which is why it’s vital you understand what’s exactly in your individual contract.

Are there Restrictions on Home Builders’ Warranties by State?

Yes, when looking for a home builder’s warranty, keep in mind that each state will have different requirements and regulations for coverage options. To learn more about the home warranty options for your state, we recommend speaking to a knowledgeable customer service representative who can help you find a home builder warranty that’s right for you!

What is a Home Warranty?

A home warranty is a service contract that protects home’s covered appliances and systems in case of a mechanical breakdown. This provides much needed assurance to homeowners who might not have the savings for a complete repair or replacement for these items.

Home warranty plans also work directly alongside homeowner’s insurance, which protects you from external sources and unforeseen events (i.e., wind, tornados, hurricanes, etc.). Together, the two plans help cover both the interior and exterior of the home in order to save homeowners in the event of a needed repair.

Do Home Warranties Cover Structural Issues?

No, home warranties do not cover structural issues. If, for example, a repair is needed for a covered plumbing system in the home that causes damage to drywall, the home warranty plan will typically only cover the plumbing system itself rather than the structural damage.

Home Warranty vs. Builder’s Warranty: What’s the Difference?

The true difference between a home warranty and a builder’s warranty comes down to one key component: the home itself. A new build will require coverage on the construction in case something should go awry, such as carpentry, concrete foundations, and a dry basement.

A builder’s warranty is only really effective for new builds, a traditional home warranty is the optimal option for both new and pre-owned homes, as new construction homes and older homes both have appliances and home systems that need protection.

Here are a few other key differences between a home warranty and a builder’s warranty.


While a home warranty plan will last as long as you renew the coverage, a builder’s warranty is a more limited coverage option.

The construction process of a new build isn’t indefinite, so a typical builder’s warranty will have up to 10 years of coverage – though, the average is about one or two years.


The cost of a home warranty plan will vary from home to home and depending on what plan you choose, just like a builder’s warranty plan. The amount of coverage options you choose for your individual plan will affect the final price, but on average, a builder’s warranty is typically less than half of a percent of the total purchase from of the home and its land.


The application process for a home warranty plan and a builder’s warranty plan are similar, but not exactly the same. With a home warranty plan, you have to renew your plan in order to keep it active, but it will last as long as you choose to renew.

A builder’s plan is a bit different. Firstly, the homeowner is not the one who applies for the plan, the builder does. These coverage options can range from one year, two years – all the way to 10 years.

Home Warranty vs. Builder’s: Which to Choose?

Now that we know the difference between a home warranty plan and a builder’s warranty plan, it should be easier to decide which is right for you! If you’re buying an older home and simply want your everyday home appliances and systems to be covered, go with a home warranty plan!

If you’re building a home and want the processes to go smoothly and have building materials, as well as other components covered, a builder’s warranty is the right choice. However, even new build homeowners should have a home warranty plan once construction is over to protect them against any mechanical breakdowns to those systems and appliances inside the home.

Check Out the Home Warranty Plans Offered by Simplicity Protection

With more than 45 years of experience in consumer protection and claims, the expert professionals at Simplicity Protection are here to provide you with the knowledge and service you deserve for your home. Our technicians will show up on time and provide a friendly and quick claims service, so you can get back to living life without worrying about your home’s appliances or systems.

To find out more about our home warranty plans, please contact us today!