Top 5 Best Home Warranties For New Construction (2023 Review)
Written By: Ross Robinson
Edited by: Andrew Dunn
Are you looking for the best home warranty for your newly constructed home? If so, you are in the right place.
In this guide, we answer questions like:
- Do you need a home warranty when you purchase a newly built home?
- What are home protection plans available for new constructions?
- How much will a home warranty cost for your new home?
- Are home warranties for new homes different?
- What do you need to think about before committing to a home warranty?
- And much more…
At Review Home Warranties, we have looked at nearly 70 home service contract companies across the United States. We compared the coverage options, costs, consumer reports, repair timeframes, and more to determine which companies offer the best products. Keep reading to learn more!
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Top 5 Home Warranty Companies for New Construction
- Choice Home Warranty: Best Overall
- Liberty Home Guard: Best Reviewed
- American Home Shield: Most Customizable
- Select Home Warranty: Most Affordable
- America’s 1st Home Club: Best For Customization
We’ve done the research for you on the best home warranty companies across the country so you don’t have to. Here are our top three picks, and why.
|Provider||Best For||Monthly Cost||Service Fee||BBB Rating|
|Choice Home Warranty||Best Overall||$45 – $53||$85||D+|
|Liberty Home Guard||Best Customer Service||$45 – $54||$75||A-|
|American Home Shield||Most Customizable||$25 – $75||$75 – $125||B|
|Select Home Warranty||Most Affordable||$44 – $48||$60||B-|
|Americas First Choice Home Club||Best For Customization||$46 – $68||$75 – $125||B|
Choice Home Warranty (Best Home Warranty for New Construction)
Choice Home Warranty is the best home warranty for new construction. With a new construction, it is almost impossible to tell when or where you will have issues in your new home. Even though some of the systems and appliances are new, they may not be covered. The best way to cover a new home is to have a combination of system and appliance coverage. With the Choice Home Warranty Basic Plan and Total Plan, you will get a combination of systems and appliance coverage. This coverage will include things like HVAC, heating system, water heater, dishwasher, and more. Spreading the coverage out across the home as opposed to purchasing a systems-only or appliance-only plan from Select Home Warranty or American Home Shield is a good idea.
With newer construction, some of the repairs are going to be more costly. Since new construction typically uses higher technology appliances and systems, the repair requires a knowledgeable and trained repair person. Choice Home Warranty offers some of the highest policy limits on the market. For most of the systems and appliances, you will have $3000 towards fixing or replacing any appliance or system. Other companies like Select Home Warranty may only offer $500. With a new home, it makes sense to have a more premium type policy. Choice can be considered a premium policy; however, the pricing is some of the most reasonable in the industry. If you have just purchased a new home, don’t wait for an issue; start protecting it right from the start.
Choice Home Warranty offers an incentive that gives homeowners $50 off the first month, one month completely free, and free cancellation for the first 30 days. Now is a great time to take advantage of the Choice plan for your new home.
American Home Shield (Most Customizable)
American Home Shield is the editor’s choice for the best home warranty for new construction. When you take the time and money to build a brand new home, choosing a home warranty company with a solid reputation will make sense. American Home Shield has been in the business for more than fifty years. The AHS company is one of the original leaders of the home warranty industry, and they have remained strong and successful for quite some time. Select Home Warranty and Choice Home Warranty have about ten years in the business, and although this is good, fifty-plus years can teach a company quite a bit about handling new construction.
The American Home Shield plan is the most customizable plan on the market. Even if you have never had a home warranty before, you will quickly see how easy AHS is to work with. If you want a plan that covers your swimming pool but not your dishwasher, you can set this up that way. The AHS warranty also allows you to customize your payment structure. If a higher monthly payment works better over a higher service fee, you can put the plan together accordingly. The American Home Shield plan will do a tremendous job of keeping your new construction looking new for years to come.
Currently, American Home Shield is offering $50 off when you sign up for a policy. This is a rare sale to find on the AHS premium plan and one that is worth considering.
Select Home Warranty (Most Affordable)
Select Home Warranty is the most affordable home warranty plan on the market. The Select Home Warranty plan has a lower monthly cost and a lower deductible or service fee than the American Home Shield or Choice Home Warranty plan. If you have just spent quite a bit of money on your new home construction, the last thing you will want is to be paying out large amounts for the warranty. With a deductible of $65, the Select Home Warranty fees are sometimes $50 less than those of American Home Shield. Although you will hope to not have any issues with the appliances and systems in your new construction, there is no way to guarantee that.
The Select Home Warranty plan features various coverage options from an appliance only to a system only to a comprehensive plan. With each of the plans from Select Home Warranty, you will also get free roof leak coverage for your new construction. The worst part about new construction is the unknown. You will not know if the home is going to have a dozen issues or no issues. Having the affordable Select Home Warranty in place is a really smart step you can take to keep your budget protected.
Select Home Warranty offers the best sign-up incentive on the market. For a limited time, you can get $150 off, two months free, and 30 days to cancel free of charge. This incentive makes it so that you have no reason not to start your Select Home Warranty plan today.
What's In This Guide?
We then reviewed each provider’s coverage to determine which offers the most beneficial plans for new homes.
So, take a look at what we found. At the end, you will find our top choices with plan information, a review of the service, and the pros and cons of each provider.
What Are Home Warranties Meant For New Construction?
Newly constructed properties have different needs. While you probably have less to worry about in terms of needing a total system replacement, there is no guarantee that any of your home systems and appliances, no matter what the age, will continue to work correctly.
Homebuilders only guarantee their work for a few years, and appliances are sometimes not covered under the builder’s warranty. So, if any of your devices malfunction after they no longer have coverage under a manufacturer’s guarantee, you are responsible for paying for the repair or replacement.
Many homeowners want to avoid these costly repairs, and they want to make sure their property is in excellent condition for years to come. So, they invest in a home warranty plan.
If you’re looking for a trusted, industry-leading home warranty company, we recommend Choice Home Warranty. They’re a top-rated home warranty company and right now you can take advantage of their current promotions that get you $50 off, plus one free month and free 30-Day cancellation. Get a free online quote or contact a specialist at 929-400-6169 before these deals end. Another great option is American Home Shield which offers $50 off. Get a free quote online or you can call a home warranty specialist directly at 866-464-7521.
What Does A Home Warranty For A New Construction Cost?
Home warranties cost the same amount, whether you are buying a plan for a new property or an older home. The annual or monthly payments will depend on the level of coverage you select.
Most companies offer three types of plans, Appliances, Systems, and Combos. An Appliance or Systems plan starts at around $35 per month. Combo Plan protection packages usually start at $50 per month.
So, you are looking at a yearly investment between $400 and $650. Some companies offer discounts if you pay for the plan upfront.
Deductibles and Fees
In addition to your yearly or monthly payment, there are other fees you are responsible for as a service contract holder. Additional costs you may have to pay include:
- Service call fees
- Transfer fees
- Cancellation fees
- Disposal fees
- Permits and building code violations
Most of the top providers offer affordable deductibles. Some even allow you to select your service fees. The lower the deductible you choose, the higher the monthly or yearly fee.
Read Also: Which Home Warranty Plan is the Cheapest?
How Do Home Warranties For New Constructions Work (Are They Unique)?
When you buy a newly built home, most states require the builder to provide a warranty. The warranty you receive from the builder is not as comprehensive as the protection you receive from a top home warranty provider.
Year 1: Coverage For Most Home Components
During the first year after you close on your new construction, you will receive robust coverage from your builder. However, your contract stipulates how repairs are made, and often homeowners are left waiting for the contractor.
Appliance repairs for any items that did not come with the house are also not included. Many homeowners bring appliances from their previous home.
During the first year as a new homeowner, while your major systems have protection under builder’s and manufacturer’s warranties, you may want to purchase an appliances-only plan.
Read Also: Top 5 Best Home Warranties For Home Buyers (2021 Review)
Year 1-5: Coverage For Major Systems
After the first year, most homebuilder warranties reduce coverage to only major home systems and severe structural damage due to craftsmanship. Your policy will likely include your air conditioner, heating pumps, water heater, garbage disposal, plumbing system, electrical system, and ductwork for between two and five years.
Your builder policy does not cover plumbing stoppages or other value-added features like:
- Free air filters
- Semi-annual HVAC maintenance
- Discounts on auto repairs
- Discounts on parts and labor for items not included in your plan
- Free limited roof leaks
Years 1 – 10: Coverage For Major Structural Defects
After the first five years, your new construction home warranty will only cover significant structural damage caused by poor craftsmanship or faulty materials. The policy will not cover storm, flood, fire, or accidental damage, though.
Furthermore, the plan will not cover any cosmetic or minor structural defects after the first year. So, after the first two to five years, the coverage is sparse.
Are You A First-Time Buyer? Check Out This Article!
Builder Warranties vs. Home Service Contracts
While builder warranties and service contracts are similar, there are also some differences. As a homebuyer, you must know how these two types of property protection work.
State Mandated Builder Warranties
Most states require builders to provide a warranty with each new home they sell. Some states regulate the length of time the policy must be effective, while others require a one-year warranty. Home warranties or service contracts, on the other hand, are not a requirement, and consumers typically purchase these plans out of pocket.
Read Also: What Are The Top Coverage Plans For Older Homes?
Home Warranty Work Timeframes
Home service contract providers have extensive networks of service technicians. So, home warranty customers typically enjoy shorter wait times, especially in emergencies.
Some builders warranty the necessary items to meet state consumer protection requirements themselves, while others use a company like 2-10 Home Builder’s Warranty. If the builder warranties the property, you may have to wait a while for them to complete repairs.
With a home warranty from a top company, you can expect service calls to take between 24 and 48 hours. Home warranty companies have extensive networks of service technicians available to complete repairs quickly.
Read Also: Do Deductibles Matter for Home Warranties?
A comprehensive plan from one of the best home warranties for new constructions will cost you between $400 and $650 per year. Leading warranty companies give you the option of breaking the annual fee down into more affordable monthly payments.
Some providers also give you the option of selecting a higher deductible in exchange for a lower monthly payment, and others give you a discount for paying for your plan upfront.
These plans differ in terms of the items covered, as well. For the first year, the builder plan covers more items, as these plan cover windows, blinds, faucets, flooring defects, and other cosmetic repairs a service contract does not.
After the first year, the builder guarantee is similar to a systems plan. However, the builder warranty does not cover as many repairs.
Another way the coverage differs is in deductibles. Under the developer home warranty coverage, you typically do not have to pay a deductible.
When you call in a service request on your service contract, you are responsible for paying a deductible. These service fees range from $75 to $150 per call depending on your home service contract provider.
During the first year, your new construction insurance policy covers more items than the average home warranty. Both plans cover normal wear but do not pay for repairs caused by natural disasters or accidents (homeowners insurance handles these claims).
Your builder coverage will likely also exclude your clothes washer, well pump, pool and spa, and other systems you install after you close.
Are you still confused about what your new home warranty will and will not cover? We do not blame you, it can be confusing. Below is a video that should help you understand what your builder warranty includes.
Is A Home Warranty For Your New Home Worth It?
Even when you purchase a newly built home, you enjoy greater peace of mind when you have a home protection company by your side. While most builders provide a builder warranty, these plans offer limited protection and usually only cover the structure of the home and major home systems.
Builder warranties only cover your property for a few years, and they do not cover the most common home repairs like plumbing stoppages.
In some states, where the law does not require builders to provide consumers with a warranty, home buyers are on the hook the moment they close on the property. Regardless of the age of your home, home systems and appliances will break.
In a newly constructed home, many of your systems are covered under manufacturer warranties. If you purchase new appliances, they will come with coverage for around 12 months, and some defects may not be covered.
A home warranty protection plan fills in the gaps. It also covers you for things like plumbing stoppages, which builder and manufacturer plans do not. Some plans also include items like free air conditioning filters, pest control, and semi-annual system check-ups.
When you consider what each warranty covers, repair timeframes, costs, extra benefits, and plan options, there is no match for buying your plan from an industry leader. However, there is nothing wrong with purchasing a major appliances plan while your home systems still have protection and upgrading to a combo plan later.
Final Thoughts On Home Warranties For New Constructions
Choosing a home warranty for your newly constructed property may seem like an unnecessary expense, especially after you pay for home inspections, closing costs, real estate agent fees, and numerous other home-related expenses. However, it can save you a ton of time and money when a system or appliance malfunctions.
The warranty that comes with your newly constructed home is limited, and the most comprehensive coverage is only available for the first year. After that, only major systems and structural defects are covered.
Purchasing a service contract for your new house ensures that you continue to enjoy the same peace of mind you had during the first year of your builder warranty.
To get started, request free quotes from a few of the best home warranty companies for new construction. Then, compare the quotes, sample contracts, and home warranty reviews on sites like the Better Business Bureau (BBB).