The Ultimate Guide to New Construction Warranties: What Move-Up Buyers Must Know

by Mark Stillings

What warranties come with a new construction home, and how do they actually protect you as a buyer?

If you’re considering a San Antonio new build, builder warranties can feel confusing, vague, or buried in fine print. This guide breaks down exactly how new construction warranties work, what’s covered (and what isn’t), and how you should use them to protect your investment before and after closing.

Why New Construction Warranties Matter for Move-Up Buyers

When you buy a new construction home, you’re not just buying fresh finishes and modern layouts — you’re also buying a builder’s promise that the home was constructed correctly. Builder warranties exist to address defects caused by workmanship, materials, or construction methods during the earliest and most critical years of ownership.

As a buyer moving up into a higher-priced home, warranty coverage matters even more. You’re typically dealing with larger foundations, more complex mechanical systems, and higher long-term replacement costs. Understanding your builder warranty coverage upfront helps you avoid surprises, disputes, and unnecessary out-of-pocket expenses later.

The Standard Builder Warranty Structure (The 1-2-10 Model)

Most production and semi-custom builders in Texas follow a version of the 1-2-10 warranty structure, though exact terms vary by builder and contract.

1-Year Workmanship & Materials Warranty

This portion covers visible defects caused by improper installation or materials. Common examples include:

Drywall cracks and nail pops
Paint defects or uneven finishes
Doors or windows that don’t open or seal correctly
Flooring issues related to installation
Cabinet alignment and trim problems

This is the warranty phase where documentation is critical. Builders expect written notice, usually with photos, and most require claims to be submitted before the one-year deadline.

2-Year Systems Warranty

The systems warranty typically covers defects related to how major systems were installed, including:

Electrical wiring
Plumbing lines and fixtures
HVAC equipment and ductwork

This coverage does not apply to normal wear and tear or homeowner maintenance issues. Instead, it focuses on defects tied directly to construction or installation.

10-Year (or 6-Year) Structural Warranty

Structural coverage protects the core components that keep your home standing, such as:

Foundation and footings
Load-bearing walls
Beams, columns, and framing
Roof and floor structural systems

Not every crack qualifies as a structural defect. Coverage typically applies only when the issue affects the home’s structural integrity or habitability.

Important for Texas buyers:
Some builders now offer 1-2-6 warranties instead of the traditional 1-2-10 structure. Always confirm the length of structural coverage before signing a contract.

What Builder Warranties Usually Do Not Cover

Understanding exclusions is just as important as understanding coverage. Builder warranties typically exclude:

Appliances (covered under manufacturer warranties)
Cosmetic wear and tear over time
Damage caused by weather events (handled by homeowners insurance)
Improper maintenance or homeowner modifications
Landscaping, irrigation, and exterior site work unless specifically included

Reading the warranty booklet and construction standards manual is essential. These documents define what the builder considers “acceptable” versus “defective.”

How Texas Law Impacts New Construction Warranties

Texas does not require builders to provide a specific written warranty. However, buyers are still protected by two implied warranties under Texas law:

Implied Warranty of Good Workmanship
Implied Warranty of Habitability

These protections mean the home must be built in a workmanlike manner and be suitable for living, even if certain items aren’t spelled out in the contract. That said, relying on implied warranties alone is never ideal — written warranty terms matter.

How to Use Your Builder Warranty Effectively

1. Start Documenting Immediately

From the day you close, keep a dedicated warranty file. Take photos, note dates, and submit issues in writing. Even minor defects should be documented early.

2. Schedule an 11-Month Warranty Review

Before your one-year workmanship coverage expires, request a full walkthrough. This is your final opportunity to address workmanship issues at no cost.

3. Follow the Builder’s Claim Process Exactly

Most builders require written notice through a portal or formal request system. Verbal conversations alone are rarely sufficient.

4. Don’t Delay Reporting Issues

Waiting can weaken your claim. Early reporting protects your rights and establishes a paper trail if escalation becomes necessary.

Why This Matters in the San Antonio New Construction Market

San Antonio continues to see strong demand for new construction homes, particularly among move-up buyers seeking modern layouts, energy efficiency, and long-term value. Builder warranties are a key part of that value — but only when you understand how they work and how to enforce them properly.

When I help buyers evaluate new builds, warranty coverage is always part of the conversation. It’s not just about price and floor plans — it’s about protecting your investment long after closing day.

Final Takeaway

A new construction warranty guide isn’t just paperwork — it’s one of the most important tools you have as a buyer. Knowing what’s covered, what’s excluded, and how to use your warranty puts you in control and helps ensure your new home performs the way it should.

If you’re considering a San Antonio new build and want help reviewing warranty terms before you commit, that guidance can save you time, stress, and money.

Call to Action

If you’re researching new construction or already under contract and want clarity on builder warranty coverage, I’m here to help.

Mark Stillings, Associate Broker, M.B.A.