What Are Common Warranty Exclusions in New Construction?

Builder warranties exclude many items buyers assume are covered — including cosmetic imperfections, normal settling, landscaping, homeowner modifications, and damage from lack of maintenance.

The Short Answer

Every builder warranty contains exclusions — a list of things the builder will not fix. These exclusion lists can be long and surprising. Many buyers assume everything in a new home is covered by warranty, but that is not the case.

Common Exclusions

Cosmetic imperfections (small drywall cracks, minor paint issues, tile chips below a certain size), normal settling and shrinkage (which builders define broadly), landscaping and grading, damage from homeowner modifications or alterations, damage from pests, weather events, or "acts of God."

Some builders also exclude specific systems or set performance standards — for example, a floor must be out of level by more than 1/4 inch before it qualifies for a warranty claim.

Maintenance Requirements

Most builder warranties require the homeowner to follow specific maintenance procedures. Failure to maintain the home properly can void warranty coverage entirely.

Common maintenance requirements include caulking windows and doors annually, maintaining proper drainage grading around the foundation, servicing HVAC systems regularly, and managing interior humidity levels.

How to Protect Yourself

Read the warranty exclusion list before closing — not after.

Follow all maintenance requirements documented in the warranty.

Document any issues with photos and submit warranty claims in writing.

Do a thorough inspection of your home before the 1-year workmanship warranty expires.

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