Understanding New Build Warranties: Term Length, Coverage, Exclusions, and Redressal
When purchasing a newly constructed home, the new build warranty is a significant part of your protection plan. It ensures that if certain defects or issues arise after taking ownership, you may not have to bear the full brunt of the repair or replacement costs. However, the specifics of these warranties - including term lengths, coverage, exclusions, and complaint procedures - can vary depending on the warranty provider. This article aims to provide a general guide to help you understand these aspects.
Term Length of New Build Warranties
The term length of a new build warranty typically differs among different providers. In some regions, these warranties can span from 1 year to 10 years or more. It's not uncommon to find warranties that offer coverage for distinct components of the home for varying durations. For instance, defects relating to the structural integrity of the house might be covered for a longer period than non-structural elements.
What Does a New Build Warranty Cover?
A new build warranty typically covers certain defects or issues that might surface in the construction of a new home. While the specific coverage can differ, it usually includes defects linked to the home's structural integrity, plumbing, electrical systems, heating, ventilation, and other major components. Furthermore, some warranties may also cover problems with appliances or other features installed in the home.
What Is Excluded from a New Build Warranty?
Despite the broad coverage offered by new build warranties, certain exclusions apply. These can depend on the warranty provider and the specific terms of the warranty. Common exclusions often encompass regular wear and tear, cosmetic issues, damage caused by the homeowner, and acts of nature such as floods or earthquakes.
Navigating Complaints Against Warranty Companies
If you find yourself needing to file a complaint or having issues with a warranty company, there are several steps you can take:
Review the Warranty Agreement
The first step should be to carefully review the warranty agreement you received when purchasing your home. Seek information about the complaint filing process and the steps involved.
Contact the Warranty Provider
Your next move should be to reach out directly to the warranty provider and express your concerns or describe the issues you're experiencing. They should have a dedicated customer service department or claims department to assist you. It's always advisable to have documentation and evidence at hand to support your claim.
Seek Legal Advice
If your issue remains unresolved after contacting the warranty provider, consider consulting with a lawyer who specialises in construction or real estate law. They can guide you on your legal rights and options.
Local Consumer Protection Agencies
Depending on your geographical location, consumer protection agencies or organisations may be available to assist you in resolving disputes with warranty providers. These agencies usually have processes in place to handle complaints and mediate between consumers and companies.It's important to remember that the specific procedures and options available to you may vary depending on your location and the terms of the warranty. Therefore, it's crucial to carefully read and understand the warranty agreement provided to you when purchasing your new build home.
Do Financial Services Authorities Oversee Warranty Companies?
The supervision of warranty companies depends on the jurisdiction and the specific type of warranty. In the United Kingdom, the Financial Conduct Authority (FCA) regulates and oversees certain types of warranties, especially those related to insurance products.The FCA is a regulatory body in the UK, responsible for the conduct of financial institutions, including insurance providers. They establish standards for financial services and ensure companies comply with relevant regulations, rules, and consumer protection measures.However, it's worth noting that not all warranties come under the FCA's purview. For instance, new build warranties offered directly by home builders or third-party warranty providers might not be regulated by the FCA. Instead, these may be subject to other regulatory bodies or consumer protection agencies overseeing construction-related matters.To determine the specific oversight of warranty companies in your country or region, it's advisable to consult the relevant regulatory authority or consumer protection agency. They can provide accurate and up-to-date information on the regulatory framework governing warranties and guide you on how to address any concerns or complaints.A new build warranty can be a homeowner's best friend when issues arise post-purchase. However, it's essential to understand the terms, coverage, exclusions, and the complaint procedures associated with these warranties. And while financial authorities oversee some warranty companies, the specifics can vary by country, so it's always best to check with the appropriate agencies in your region.