New construction homeowners have builder warranty protection for years 1–2 on systems. The key transition point: when that builder coverage ends around year 2–3, a consumer home warranty becomes your primary safety net.
The Builder's Warranty - The 1-2-10 Structure
Most states require builders to provide minimum warranty coverage on new homes:
Workmanship and materials
Paint, trim, fixtures, minor defects.
Mechanical systems
Plumbing, electrical, HVAC installed by the builder.
Structural defects
Foundation, load-bearing walls, structural framing.
Some builders exceed these minimums; few provide less. Those that do may face state-law liability.
2-10 HBW's Role in New Construction
2-10 HBW (Home Buyers Warranty Corporation) is a warranty company that works with builders to back their warranties. When a builder offers a "2-10 backed warranty," 2-10 HBW is the company administering and backing the structural and systems warranty. This is different from buying a consumer home warranty from 2-10 HBW directly.
Many builders use 2-10 HBW-backed warranties because it provides a financially-backed guarantee of the builder's warranty commitments.
When Builder Warranty Coverage Ends
After year 2, HVAC and plumbing/electrical coverage from the builder's warranty ends - even though the 10-year structural coverage continues. This is when a consumer home warranty becomes relevant.
Key timing: Most new construction homeowners buy a service contract warranty around year 2 or 3, when builder HVAC coverage expires. Don't wait until something fails.
New Construction Warranty Considerations
Pre-existing condition risk
Much lower on new construction. Your systems are new - there's no wear history for companies to use against you.
Cap relevance
With new HVAC equipment, the replacement cost is known. A new 4-ton AC unit costs $6,000–$12,000 to replace. Choose a plan with adequate cap coverage.
Maintenance documentation
Start documenting maintenance from day one. Clean filters, annual HVAC tune-up. These records support future claims.
Recommended Approach for New Construction
Years 1–2: Rely on builder warranty for systems
File any workmanship claims early - before year 1 expires.
Year 2–3 transition: Research and purchase a consumer home warranty
Do this before builder HVAC coverage expires.
Years 3+: Maintain the service contract warranty
As HVAC approaches 10 years, reassess cap levels.