Home Warranties

Homebuilder warranties often prohibit real recourse for homeowners. Most cost claims must be made in the first year after house is completed or close of escrow, Moreover, warranties do not cover everything. They may even define-down what actually constitutes a defect—setting low performance standards. They often do not cover cosmetic defects no matter how visually onerous. More importantly, they may not cover consequential damages, such as mold resulting from water intrusion. A builder may fix the roof, but not the far more expensive mold clean-up.

Warranties often contain language requiring the homeowner to waive their right to a jury trial and instead submit defect claims to an out-of-court arbitration process.