What Is Included In A Typical New Construction Home Warranty?
Building a new home is a thrilling step into the next chapter of your life. But beneath the fresh paint and pristine floors, hidden major structural defects can sneak up on you—like a leaky roof or a shaky foundation—long after you’ve settled in.
That’s why having a new construction home warranty is non-negotiable. It can keep unexpected repair bills from turning life in your dream home into a total nightmare.
In this article, you’ll learn how a builder’s warranty works, what it covers, where it falls short, and how to make the most of it if something goes wrong.
What Is A New Construction Home Warranty?
A builder’s home warranty (often bundled into your purchase agreement) is the builder’s way of backing up their work.
It’s basically a promise that the core construction, building materials, and structural components will hold up.
You might think of your warranty as a seatbelt for your finances—it won’t prevent every bump in the road, but it can protect you from a major jolt if something goes wrong. Every region has its own quirks, and what’s included in your warranty may vary from state to state.
In Texas, for instance, foundation movement is common thanks to those expansive soils and weather extremes. Some builders may offer specific warranty clauses for that.
Before you sign anything, check local requirements so you know what you’re getting—and what you’re not. If you have questions about federal housing authority standards, it’s smart to contact them directly.
How Are New Construction Warranties Structured?
These warranties typically come in phases, each with its own time frame. You’ll see coverage for the small stuff in the first year, while more serious issues might be covered for a couple of years or even a full decade.
This staggered approach targets specific problems when they’re most likely to surface.
Some home builder’s warranties are handled by the same company that constructed your new home.
Others enlist a third party independent company—one that specializes in offering limited coverage or broader plans.
Either way, pay attention to the fine print: you’ll need to know exactly who’s fixing your roof if a storm reveals faulty shingles in month three.
Below are the different types of coverage typically included in a home builder’s warranty.
Workmanship & Materials (1 Year)
The first 12 months often cover cosmetic or minor construction issues: paint peeling, loose trim, small cracks, or warped cabinets. If it’s clearly a builder’s work error, your warranty typically picks up the tab. Although most warranties don’t cover small cracks unless they’re more than cosmetic, it never hurts to mention them during your final walk through.
Systems Coverage (2 Years)
Around the second year, you get protection for essential home systems such as electrical systems, plumbing, and air conditioning. These are the things that make your home livable every day. If your heating conks out mid-winter, this two year warranty coverage could be a lifesaver.
Structural Defects (Up to 10 Years)
Big-ticket repairs—like a slipping foundation or bowed walls—can become huge financial drains. That’s why many warranties last up to a decade for major structural components and other load bearing elements. In states like Texas, where shifting soil can wreak havoc, this extended timeframe can provide major peace of mind and protect you from major structural defects.
What Does A New Build Warranty Cover?
A builder’s home warranty typically covers critical elements you can’t just brush off. That might include your foundation, roof framing, and other structural or electrical work.
Systems like plumbing and air conditioning also fall under the umbrella for a set period.
But it’s important to note whether coverage is partial or full–don’t just assume you have full coverage!
Sometimes, you’ll be responsible for a deductible.
Other times, the builder pays every penny of the repair.
With most home builder warranties, you can look up specific coverage details through the warranty company or builder itself.
Read the details of your warranty carefully. Knowing what you’ll owe if something goes wrong can spare you big surprises.
What Isn’t Covered Under A Builder’s Home Warranty?
Warranties aren’t all-inclusive. Household appliances, for instance, are usually handled by separate manufacturer warranties or a service contract you purchase separately.
Minor cosmetic issues—like barely noticeable cracks in drywall—probably aren’t covered unless they signal something deeper.
Damage from weather or natural disasters is usually on you (or your homeowners insurance).
Routine normal wear isn’t included either. If you skip basic maintenance and your gutters clog, leading to leaks, you likely can’t hold the builder accountable. This is simply because most warranties exclude negligence or lack of upkeep.
Are Builders Required To Provide A Warranty?
Not every state forces builders to hand over a warranty, but many do. Some states have statutes mandating a minimum level of coverage for new homes, while others leave it to the builder’s discretion.
In Texas, there isn’t a universal law forcing every builder to offer a warranty, but most reputable builders do. They commonly provide at least a year of coverage on workmanship and materials, with lengthier provisions for major structural defects.
It’s a good idea to search for state laws or contact local building boards for the latest guidelines.
If you’re using an FHA or VA loan, there might be extra layers of protection or minimum standards set by federal agencies.
These rules can tip the scales in your favor, so they’re worth a quick look.
How Can You Make A Claim Under Your Home Builder’s Warranty?
If something goes wrong, speed is your friend. Report issues to your builder or warranty company right away. This is the first step in making claims.
Keep a log of what you notice, snap some photos, and hold onto receipts if you call in a pro to assess the damage.
In many cases, you’ll need to fill out a form—online or on paper—that details the problem.
Some homeowners choose to seek legal representation and present evidence if the warranty provider denies a warranty claim. Document everything; a paper trail can be your best ally.
Is A New Construction Home Warranty Transferable?
Many new construction home warranty agreements transfer to the next owner if they’re still active when you sell. That’s a serious selling point—especially if several years remain on the structural warranty.
If transferability applies, be sure you follow any required steps, like notifying the warranty company within a certain timeframe.
Missing deadlines might void this perk, which could knock a few bucks off your resale value as a consequence.
But what if you’re not sure how a builder’s warranty stacks up against the other options like private insurance?
Home Warranty: Covers existing household appliances and systems. Often bought separately, usually paid monthly or yearly. Some owners opt to buy third party warranties for extra coverage.
Builder’s Warranty: Addresses defects from home construction. Typically included in the home’s purchase.
Homeowners Insurance: Kicks in when external factors—storms, theft, accidents—cause damage.
Putting these pieces together helps you dodge nasty surprises. You might need all three, or just a combination, depending on how risk-averse you are.
How Much Do Repairs Cost With A New Home Warranty?
Foundation repairs can run tens of thousands of dollars. If those cracks turn into a safety hazard, you’ll be glad your warranty covers major structural components.
HVAC systems can also break down unexpectedly—an average mid-range replacement could cost several thousand dollars.
The price for a builder’s warranty is often baked into the cost of the home.
Some builders prefer third-party warranties from an independent company that might add a small premium.
Either way, it’s usually a fraction of what just one big repair could cost you out of pocket.
Tips For Protecting Your New Investment
Schedule Regular Maintenance: Little tasks—like cleaning gutters or checking seals—can head off big problems down the line.
Keep Records: Save emails, inspection reports, and any repair receipts.
Mark Your Calendar: Know exactly when your 1-year, 2-year, and 10-year coverage periods expire so you don’t miss the time frame for claims.
Read the Details: Different builders have different coverage specifics. You don’t want to find out too late that your policy excludes something you assumed was a covered item.
Build A New Home With An Included Warranty From Dunn & Stone Builders
A newly constructed home isn’t just another purchase—it’s a huge investment. A structural warranty is an important line of defense between you and costly fixes.
Whether you’re worried about foundation cracks or a faulty HVAC system, your warranty helps keep nightmare repairs at bay.
Take time to understand the warranty coverage included with your new home. Stay on top of basic upkeep, and stay organized if an issue arises.
With a thorough understanding of what’s included in your warranty, you’ll be in the best position to enjoy your brand-new Texas home. Without stressing over every bump in the road.
If you’re looking for a home builder who stands behind every square foot, give Dunn & Stone Builders a call or fill out our contact form. We’ll walk you through our warranty options for new builds and show you how we keep your new home protected for the long haul.
Frequently Asked Questions
Does a new construction home warranty cover roof leaks?
Yes, if the leak stems from a defect in materials or workmanship, and it’s still within your coverage window.
Will small wall cracks void coverage if I don’t report them?
Probably not, unless they hint at a bigger structural issue. Still, it’s good to report anything suspicious to be safe.
What if my builder denies my warranty claim?
You can seek mediation, arbitration, or even small claims court if you believe the repair should be covered. Having thorough documentation helps your case.
Company
Liberty Home Guard
American Home Shield
First American Home Warranty
Cinch Home Services
Old Republic Home Protection
HomeServe
Choice Home Warranty
Home Warranty Of America
Texas Coverage?
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes
Covers Major Home Systems & Appliances?
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes
✅ Yes (via separate plans)
✅ Yes
✅ Yes
Monthly Premium
Starts at $49
Starts at $39
Starts at $42
Starts at $35
Starts at $45
Starts at $7
Starts at $35
Start at $46
Service Fee
Typically $75–$125
$100–$125 (customer selects at sign-up)
$75–$125
$100–$150 (customer selects at sign-up)
Typically $100
$0–$100 depending on plan
$85 (fixed)
$50-$100
Typical Response Time
24–48 hours
Varies (reports range from 24 hours to multiple weeks)
180-day workmanship guarantee, longest on this list
Covers rust, corrosion, and unknown pre-existing conditions
Great for normal wear and tear on HVAC, electrical, and plumbing
Straightforward plans
Lower-than-average service request fees
Several plans come with no service fees
Highly flexible, system-specific plans tailored to your needs
Affordable entry pricing starts at $7/month for individual plans
Fixed $85 service fee helps homeowners budget confidently
Broad home warranty cover for HVAC, appliances, and more
Includes optional coverage for issues like roof leaks
Generous HVAC coverage, ideal for Texas heat
Transparent pricing, rare in the industry
Wide range of add-on options for upscale homes
Cons
Lower coverage limits on some repairs raise out-of-pocket repair costs
Some service fee options are unclear until you begin the sign-up process
Occasional complaints about delays in technician assignment
Higher premiums compared to more affordable plans
Few add-on coverage options
Some complaints of poor customer service and long claim resolution times
Less budget-friendly for cost-conscious homeowners
Limited add-on coverage selection
Does not cover pre-existing conditions, limiting protection for older homes
HVAC coverage not included in the “Repair Only” plan
No roof leak coverage
Higher service request fees than competitors
Limited add-on options
Comprehensive coverage requires stacking plans
Bundled options are confusing, not necessarily comprehensive
Frequent reports of claim denials
Mixed customer service reviews
Fewer added perks than competitors
Some customers report slow claim processing
Add-ons can raise the overall cost quickly if you're not careful
Our Top Pick: Liberty Home Guard
If you're looking for the best home warranty company in Texas, Liberty Home Guard stands out as the top choice in 2025.
It’s not the cheapest option on the list, but it consistently ranks as one of the top home warranty providers thanks to its strong home warranty coverage, fast service, and unmatched flexibility.
Liberty’s plans are designed for real life in Texas, where dual air conditioning systems, major home systems, and high summer temps are the norm.
It’s one of the few home warranty companies that includes coverage for two electric AC units in its standard plan.
What also sets Liberty apart is its level of customization.
With over 30 add-on coverage options, homeowners can build a plan that fits their property perfectly, whether they need coverage for a septic system, a swimming pool, or extra laundry appliances.
This kind of flexibility is rare among other home warranty companies.
It’s not just the coverage options that impress, though.
Liberty earns high marks from home warranty customers for its responsiveness and customer service.
You can manage your home warranty contract through their mobile app, which many Texas homeowners love for the convenience when filing a claim or tracking repairs.
Dual AC coverage in the base plan, ideal for Texas heat
High customer satisfaction
Over 30 add-ons for extra coverage
Mobile app and live chat support
Cons
Lower coverage limits on some repairs raise out-of-pocket repair costs
Some service fee options are unclear until you begin the sign-up process
Occasional complaints about delays in technician assignment
Runner Up: American Home Shield
Coming in close behind Liberty, American Home Shield ranks as one of the best home warranty providers in Texas for 2025.
With over 50 years of experience and broad home warranty coverage that includes preexisting conditions, this provider has built a strong reputation among homeowners with older homes, aging heating systems, and major appliances.
In a 2025 This Old House survey, 44% of Texas homeowners selected American Home Shield as their current provider, making it one of the most widely used Texas home warranty companies.
Our favorite features is the $5,000 HVAC coverage cap per system, which is ideal for the Texas climate. The reason we love it is because A/C repairs are some of the most common (and expensive) home service calls made in the Houston area.
Quick Facts: American Home Shield
Feature
Details
Texas Coverage
✅ Yes
Covers Major Home Systems & Appliances
✅ Yes
Monthly Premium
Starts at $39
Service Fee
$100–$125 (customer selects at sign-up)
Typical Response Time
Varies (reports range from 24 hours to multiple weeks)
Mobile app allows you to request service anytime, anywhere
Cons
Higher premiums compared to more affordable plans
Few add-on coverage options
Some complaints of poor customer service and long claim resolution times
Other Great Home Warranty Companies In Texas
While Liberty Home Guard and American Home Shield earned our top spots, they’re not the only Texas home warranty companies worth your attention.
Several other home warranty providers offer solid coverage, competitive pricing, and reliable service.
If you're looking for alternatives that still deliver great value and protection for your covered home systems, the options below are absolutely still worth considering.
First American Home Warranty
While it’s a bit pricier than some affordable plans (with monthly premiums starting at $42), First American Home Warranty makes up for it with higher coverage limits and solid protection for both major appliances and covered systems.
This is especially appealing to owners of high-end homes in Houston.
Some plans offer up to $7,000 in appliance coverage and unlimited HVAC system coverage, which is what makes this company a strong contender for anyone who wants broad, comprehensive coverage (as long as you’re willing to pay a little more for it).
One standout feature is the First American Advantage upgrade, which adds protection for poor installation issues not always covered under standard home warranty plans.
Great for normal wear and tear on HVAC, electrical, and plumbing
Straightforward plans
Lower-than-average service request fees
Cons
Limited add-on options
HomeServe
HomeServe offers a different take on home warranty coverage in Texas, and it works well for homeowners who want low service fees and highly targeted protection.
Instead of bundling everything into one plan, HomeServe allows you to pick and choose the covered systems you care about most, like plumbing, electrical, or HVAC.
To sweeten the deal, several of their plans have no service fees at all.
That’s a massive advantage if you’re looking to reduce out-of-pocket costs on normal wear repairs.
But because each system is covered under a separate plan, achieving full comprehensive coverage can get pricey.
You may need to purchase multiple plans to match the kind of protection you’d get from bundled providers like Liberty or options found on American Home Shield’s website.
Highly flexible, system-specific plans tailored to your needs
Affordable entry pricing starts at $7/month for individual plans
Cons
Comprehensive coverage requires stacking plans
Bundled options are confusing, not necessarily comprehensive
Choice Home Warranty
With one of the most affordable home warranty plans in Texas, Choice Home Warranty offers monthly premiums starting at $35 and a predictable, fixed $85 service fee.
It’s a budget-friendly option for homeowners who want wide home warranty coverage without a complicated pricing model.
Choice’s plans cover both HVAC systems and major appliances, and they include extras that other low-cost providers skip like limited roof leak coverage.
It’s a strong fit for value-seekers who still want protection for high-cost repairs.
However, Choice’s reputation comes with a caveat.
Despite its large customer base (49,000+ reviews on Trustpilot), it has received criticism for poor customer service and claim denials more frequently than top competitors.
Fixed $85 service fee helps homeowners budget confidently
Broad home warranty cover for HVAC, appliances, and more
Includes optional coverage for issues like roof leaks
Cons
Frequent reports of claim denials
Mixed customer service reviews
Fewer added perks than competitors
Home Warranty of America
Home Warranty of America (HWA) offers plans designed for both homeowners and real estate professionals, which makes it a versatile choice for a wide range of Texans.
Known for its transparent pricing and solid HVAC coverage, HWA is a wise pick for those living in hotter climates like Houston where AC systems get put to the test.
Plans start at $46/month, and coverage includes major appliances and systems, with HVAC protection capped at $5,000.
While the base pricing is competitive, be aware that add-on options can increase costs quickly, especially if you’re customizing coverage for a high-end or custom-built home.
Add-ons can raise the overall cost quickly if you're not careful
How We Picked The Top Home Warranty Companies Of 2025
Companies with the best home warranties in Texas respond quickly, partner with licensed local contractors, and actually follow through on their repair guarantees.
Here’s the criteria we used to build our list of the top home warranty companies in 2025. The companies on the list needed to meet at least 4 of 5 of these requirements in order to make the list.
Must cover critical systems and appliances
Texas homeowners face unique challenges due to the climate. Houston’s heat and humidity put a serious strain on air conditioning systems, plumbing, and electrical systems, which means warranties that skip these aren’t worth your time.
In fact, in a recent 2025 survey by Texas Homeowner Trends, 63% of respondents ranked air conditioning coverage as their top priority when choosing a home warranty in Texas.
Builders also care. They want home warranty companies that cover the systems and appliances they install to avoid post-sale arguments over repairs.
Must be priced for Texas homeowners
We only selected companies whose plans fall within the average home warranty cost range for Texas in 2025. That’s between $52 and $80 per month.
This range reflects pricing for the Houston area, which is one of the state’s most active homebuilding markets.
Plans that are too cheap often have low coverage limits. Plans that are too expensive may not offer enough value for what they charge.
Must have strong online reviews
We only considered companies with an average customer satisfaction rating of at least 4 out of 5 stars across sites like Trustpilot.
High scores show how the company handles real-world problems and home warranty service issues effectively.
Must offer fast, reliable service within a maximum of 48 hours
Texas homes can’t afford to wait for repair when the AC unit breaks down in the middle of summer.
Every company on our list offers quick service calls, a strong contractor network, and local availability for licensed repairs.
The Bottom Line
There’s no one-size-fits-all when it comes to home warranty coverage in Texas, and that’s exactly why we created this guide.
From dual AC unit coverage to low service fees and comprehensive plans with high coverage limits, each of the companies we reviewed brings something different to the table.
Here’s the short version:
Liberty Home Guard is our top pick for its flexibility, customer satisfaction, and coverage designed for Texas heat.
American Home Shield stands out for high HVAC caps and coverage for older homes with no maintenance records required.
And for those on a tighter budget or looking for niche protections, companies like Cinch, HomeServe, and First American still offer reliable service — even if they don’t hit every mark.
So which warranty fits your situation best?
Best For First-Time Homeowners: American Home Shield
AHS offers peace of mind with broad coverage, no maintenance history requirements, and helpful tech features like 24/7 service requests and live video chat support.
Best For Budget-Conscious Homeowners: Cinch Home Services
Starting at just $35/month, Cinch offers solid protection with extras like rust coverage and a $500 homeowners insurance deductible reimbursement.
It’s a budget-friendly pick that still comes with a 180-day workmanship guarantee, which is one of the best in the business.
Best For Homeowners Who Want Total Coverage: Liberty Home Guard
With over 30 optional add-ons, dual AC unit coverage in the base plan, and a strong contractor network, Liberty is built for homeowners who want it all.
It’s the best choice for anyone building a custom home or looking to cover systems that most providers skip.
If you’re building a new home in the Houston area, choosing the right home warranty company is only part of the equation. You also need a builder who cares about long-term quality, not just closing day.
At Dunn & Stone Builders, we partner with trusted home warranty providers and build every home with longevity in mind.
Contact us today to talk about how we can help you bring your dream home vision to life.
Frequently Asked Questions
What Is The Best Home Warranty Company In Texas?
The best home warranty company in Texas is Liberty Home Guard. It offers fast service, strong customer satisfaction, and plans tailored to Texas homes, including dual AC coverage.
Which Home Warranty Providers Have The Highest Customer Satisfaction?
Liberty Home Guard and American Home Shield lead in customer satisfaction, with 4.5-star or higher ratings on review sites like Trustpilot and the Better Business Bureau.
What Does Home Warranty Coverage Typically Include?
Home warranty coverage usually includes major systems like HVAC, plumbing, and electrical, plus key appliances such as refrigerators, ovens, and washers.
Are All Home Warranty Plans Available In Texas?
No, not all home warranty plans are available in Texas. Only licensed Texas home warranty companies can offer coverage in the state.
Which Home Warranty Companies Offer The Best Repair Guarantee?
Cinch Home Services offers the best repair guarantee, with a 180-day workmanship guarantee that’s six times longer than the industry standard.
How Do I Choose Between Different Home Warranty Providers?
Look for providers with fast service times, high customer satisfaction, competitive pricing, and strong coverage for systems common in Texas homes.
What Should I Look For In Home Warranty Plans For Texas?
Look for home warranty plans that include HVAC, plumbing, and electrical systems, offer reasonable monthly rates, and have a solid contractor network for quick repairs.
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