Extended Warranty
Also known as: Extended Home Warranty, Third-Party Warranty Extension
Additional warranty coverage that extends beyond the builder's standard warranty periods, often provided by a third-party warranty company for an additional cost.
Detailed Explanation
An extended warranty provides coverage after the builder's standard warranty expires. This is most commonly available for structural components (extending beyond the standard 10-year structural warranty) or for systems like plumbing and electrical.
Extended warranties for new construction are typically offered by third-party warranty companies, not the builder directly. The builder may offer to include an extended warranty as part of the purchase or as an add-on.
The key advantage of a third-party extended warranty is that it may survive the builder's bankruptcy — meaning you still have warranty protection even if the builder goes out of business.
In Your Contract
Extended warranties are separate documents from the builder's standard warranty. They may be offered at closing or during the builder's warranty period.
Key Points
- 1Extends coverage beyond the builder's standard warranty periods.
- 2Usually provided by third-party warranty companies.
- 3May survive the builder's bankruptcy.
- 4Read the terms carefully — coverage and exclusions vary widely.
- 5Consider the cost relative to the risk and coverage provided.
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