Texas New Home Warranty Guide: What Is Covered & What Is Not

Overview of New Home Warranties in Texas

When you purchase a new construction home in Texas, the builder is required to provide certain warranty protections. These warranties cover defects in materials and workmanship for specified periods, giving buyers recourse when problems emerge after closing. Understanding what is covered, what is not, and how to exercise your warranty rights is essential for protecting your investment in a state where new construction represents a significant share of home sales.

Texas new home warranties typically operate on a tiered system: one year for workmanship and materials, two years for mechanical systems (plumbing, electrical, HVAC), and ten years for structural defects. These are standard industry terms, though some builders offer enhanced coverage. Major national builders like DR Horton, Lennar, and Meritage typically use third-party warranty companies, while custom builders may offer their own warranty directly.

Types of Warranty Coverage

The one-year workmanship warranty covers defects in construction quality including drywall cracks, paint issues, flooring problems, door and window alignment, cabinet defects, and tile grout failures. This is the most commonly used warranty period, as many cosmetic and minor construction issues emerge within the first year as the home settles and materials adjust to the Texas climate's temperature extremes.

The two-year systems warranty covers major mechanical systems including plumbing pipes and fixtures, electrical wiring and panels, HVAC systems and ductwork, and built-in appliances. This coverage is critical because system failures can be expensive to repair. A failed HVAC compressor can cost $3,000-$5,000 to replace, and replumbing a section of the home can exceed $2,000. The systems warranty provides meaningful financial protection during the period when manufacturing defects are most likely to appear.

The ten-year structural warranty covers the home's load-bearing elements including the foundation, framing, roof structure, and load-bearing walls. Structural defects are rare but extremely costly when they occur. Foundation repair in Texas can range from $5,000 to $30,000 or more depending on the severity. The structural warranty provides the longest-term protection and typically transfers to subsequent owners if you sell the home within the warranty period.

What Is Typically Covered

During the first year, expect coverage for: drywall nail pops and cracks (common as the home settles), grout cracking in tile, door and window adjustments needed due to settling, minor plumbing leaks, HVAC calibration issues, flooring squeaks or gaps, and paint touch-ups for defective application. Builders typically schedule a 30-day, 6-month, and 11-month walkthrough to document and address warranty items.

Beyond the first year, coverage focuses on the building's systems and structure. Expect coverage for: pipe leaks and plumbing failures (years 1-2), electrical circuit issues (years 1-2), HVAC mechanical failures (years 1-2), foundation settlement beyond normal tolerances (years 1-10), roof structural failures (years 1-10), and load-bearing wall issues (years 1-10). Documentation is key; report all issues in writing and keep copies of all correspondence.

What Is Not Covered

Warranties do not cover normal maintenance items, homeowner-caused damage, or cosmetic issues resulting from normal wear and use. Specifically excluded items typically include: landscaping and irrigation, cosmetic concrete cracking in driveways and sidewalks, minor settling cracks in drywall after the first year, fading or weathering of exterior materials, damage from failure to maintain the home properly, and issues caused by unauthorized modifications or additions.

Soil movement and foundation issues can be contentious. While structural foundation defects are covered for ten years, builders may argue that soil movement is a natural condition rather than a construction defect. Texas's expansive clay soils create ongoing foundation challenges that may or may not fall under warranty coverage depending on the cause. If you experience foundation issues, have an independent structural engineer assess the situation before accepting the builder's determination.

How to File a Warranty Claim

Filing a warranty claim starts with documenting the issue. Take dated photographs, note when the problem first appeared, and describe the defect clearly. Submit your claim in writing to the builder's warranty department, not just to your sales contact. Most builders have online warranty portals or dedicated email addresses for claim submission. Keep copies of all submissions and any responses.

The builder is typically required to respond within a reasonable time frame, often 30 days for non-emergency items. Emergency items affecting habitability (no heat in winter, major water leak, electrical hazard) should receive same-day or next-day response. If the builder is unresponsive, escalate to the warranty company directly. If using a third-party warranty like 2-10 Home Buyers Warranty or StrucSure, they have their own dispute resolution processes.

If the builder denies a valid claim or fails to make adequate repairs, you have several options: request a reinspection, file a complaint with the Texas Department of Licensing and Regulation, pursue mediation through the warranty company's dispute resolution process, or consult a construction defect attorney. Texas law provides meaningful consumer protections for new home buyers, but exercising them requires documentation and persistence.

Inspection Before Warranty Expiration

Schedule a thorough professional home inspection 30-60 days before your one-year warranty expires. This 11-month inspection is one of the most important things you can do as a new construction homeowner. A qualified inspector will identify defects you may have overlooked, including issues behind walls, in the attic, and under the home that are not visible during daily living.

The 11-month inspection typically costs $300-$500 and is well worth the investment. Common findings include minor plumbing leaks, HVAC ductwork issues, improper grading that directs water toward the foundation, missing attic insulation, and drywall defects. Submit all findings to the builder as a warranty claim before the one-year deadline. Even if the builder disputes some items, having them documented protects your rights for future claims under the systems and structural warranties.

Protecting Your Investment

Beyond warranty claims, protecting your new construction investment requires consistent maintenance. Follow the builder's maintenance guidelines, which typically include seasonal HVAC filter changes, maintaining proper drainage around the foundation, running water in unused fixtures to prevent P-trap evaporation, and monitoring for signs of settling. Document your maintenance activities, as the builder may deny warranty claims if they can demonstrate the homeowner failed to maintain the property properly.

Consider purchasing a separate home warranty plan to cover appliances and systems after the builder's warranty expires. These plans cost $400-$700 per year and provide coverage for HVAC, plumbing, electrical, and appliance repairs. While the coverage overlaps with the builder's warranty during the first two years, it extends protection beyond the builder's coverage period and can save significant money on major system repairs during years 3-10 of homeownership.

If you are currently shopping for new construction in Austin, Houston, Dallas, or San Antonio, ask about warranty specifics during the buying process. Not all builders offer the same coverage, and understanding your warranty terms before closing helps you make an informed decision. Contact our team for guidance on evaluating builders and warranty programs in your target market.