Custom Home Warranties Vs Personalized Production Home – New Home Warranties

This is part four of our series of articles comparing custom homes to personalized production homes. This article will focus on new home warranties offered by custom home builders vs. personalized production home builders.

If you are considering the purchase of a new home, you may be trying to decide whether to buy a custom home or a personalized production home. There are very distinct differences between a custom home and a production home; therefore, you should spend some time learning the specific details of each before you make any decisions. Some of the questions you will need to have answered are:

Cost: What is the square foot cost for each type of home?

Time to Build: How long does it take to build each type of home?

Pros/Cons: What are the advantages and disadvantages of each type of home?

Options and Selections: What options and selections will you get to choose?

Warranty: What level of new home warranty should you expect with each type of home?

Touch Points: How much personalized service will you get from each type of builder?

Learning everything you can about the different types of new home selections available will allow you to make a more educated decision about which option is best for you and your family. Please read our series of articles on this topic for more information and answers to all the above questions.

Custom Homes – New Home Warranty

When building a custom home, you generally acquire your own land, design your own floor plan (or have it designed) and submit it to the builder. Additionally, you will be directly involved in the planning and development of every aspect of your new home.

Each builder will have their own specific new home warranty and levels of that warranty. Most custom home builders cannot afford to include a custom warranty that will cover a home’s structure for up to 10 years. They generally only give the home buyers a one year builder’s warranty. However, some custom home builders will take care of problems with their homes beyond the required warranty. Each builder is different and it’s up to the home buyer to find out the specifics of the different new home warranties that each builder offers.

There are numerous home warranty companies that offer extended warranties for new and older homes, so even if your builder only offers a one-year builders warranty it is possible to buy additional coverage. It’s important to research new home warranty companies before purchasing coverage to make sure you are getting the coverage you need at a fair price from a reputable company.

Personalized Production Homes – New Home Warranty

When having a personalized production home built, it’s customary for the home and land to be offered as a package deal. You will have the ability to choose from a variety of home floor plans and new home options; therefore, with a personalized production home, you will still have the opportunity to customize your home to a certain extent.

When it comes to offering a warranty, each production home builder is required to offer a one-year builders’ new home warranty for their homes. However, some builders offer custom home warranties, such as the 2-10 Warranty Program offered by McKee Homes that covers the material and defects for one year, the home’s systems for two years and the structure for 10 years.

Having a good quality home warranty provided by your home builder saves money over the years as you don’t need to purchase additional coverage after the first year. Another advantage of the 2-10 Warranty Program is that it is fully-transferable, which increases the resale value of the home, should you ever need to sell it.

2-10 Home Buyers Warranty

2-10 Warranty Program Coverage Details:

  • Ten (10) years of structural defect coverage for load-bearing components.
  • Two (2) years of systems surety coverage against defects in wiring, piping, and ductwork in electrical, plumbing, heating, cooling, ventilating, and mechanical systems.
  • One (1) year of surety coverage against defects in workmanship and materials.

The Bottom Line

The decision about whether to buy a custom home or a personalized production home is a very personal one and one only you can make. You should take as much time as you need to study all your options, and then will you be able to make the decision that is right for you and your family.

If you find yourself torn about which direction to take, you may want to visit some personalized production home builder locations to get a feel for what they have to offer. If after that you don’t find anything that suits your needs, you can always contact a custom home builder to compare the costs and options they have available.


Types of Home Warranties

Warranties provide peace of mind to buyers of many types. Whether it’s a warranty to cover your phone, computer, furniture or car, having that confidence that your stuff is protected puts you at ease. If your buying a new home, you’ll want to consider the types of home warranties available in your decision.

Buying a home is likely the largest purchase many of us will ever make, so why not include a warranty to protect your largest purchase? Home warranties are available for both new construction and resale homes. New homes can come with a builder’s warranty or a third-party warranty. The Federal Housing Authority (FHA) and the Department of Veterans Affairs (VA) requires builders to provide third-party warranties for newly built homes with FHA and VA loans.*

As with any warranty, it is important to understand what is and is not covered for your new home. This knowledge allows for better communication and less frustration if a warranty situation arises.

Builder and third-party warranties typically cover the same items for your home. Generally, warranties cover material and workmanship of the home. The duration of warranties can vary from one to two years and all the way up to 10 years. The best bet to find out what is covered by the warranty is to ask for a copy of the warranty. Most builders have defined guidelines on what is and isn’t covered.

One way to think of your home is as a living object that expands and contracts as the seasons change and settles over time. So it’s important to keep in mind that your home will not stay pristine for the whole time you live there. You will have to maintain the home. Caulking and grout may separate, hairline cracks may appear in your drywall and paint and soil may erode as the weather changes. These are all normal events and are considered homeowner maintenance.

210 Home Buyer's Warranty Program

While homeowner maintenance items are not included in most home warranties, builder and third-party warranties will cover defects in materials and workmanship for new homes for one year. Most builder warranties stop there, but the 2-10 Warranty Program offered by McKee Homes will additionally cover your home’s systems for a full two years and the structure for a full 10 years.

Systems coverage includes wiring, piping, and ductwork in electrical, plumbing, heating, cooling, ventilating, and mechanical systems. Structural overage includes all load-bearing components.