Warranty Exclusion
Also known as: Warranty Limitation, Excluded Items
A specific item, condition, or type of damage that the builder's warranty does not cover. Warranty exclusion lists in builder contracts can be extensive.
Detailed Explanation
Every builder warranty comes with a list of exclusions — things the warranty does not cover. These exclusions can be surprising and extensive. Common exclusions include cosmetic imperfections below a certain size, normal settling and shrinkage, landscaping, exterior grading changes by the homeowner, damage from homeowner modifications, and issues caused by lack of maintenance.
Some builders also exclude specific systems or components, or set narrow performance standards that must be exceeded before a claim is valid (for example, a floor must be out of level by more than a specified amount).
Understanding warranty exclusions before closing helps you know what you are responsible for and what the builder will fix.
In Your Contract
Found in the warranty document, often as a detailed list. May also appear as "performance standards" or "maintenance guidelines" that define what qualifies for a warranty claim.
Key Points
- 1Warranty exclusions can be extensive — read them carefully.
- 2Common exclusions include cosmetic issues, settling, and homeowner-caused damage.
- 3Performance standards may set thresholds that must be exceeded before a claim qualifies.
- 4Maintenance requirements can void warranty coverage if not followed.
- 5Understanding exclusions helps you know what the builder will and will not fix.
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