For homeowners, a home warranty provides the peace of mind that the quality of construction is covered by a third party—a home warranty company. For example, if your refrigerator breaks down or the roof leaks during the time period covered by the warranty, your homebuilder should take care of it. While home warranty coverage does not usually vary greatly between homebuilders, the quality of the service provided runs the gamut.

Most home warranties provide similar levels of coverage. For example, within 90 days of closing, a service technician should walk through your home with you to identify and address any issues. Throughout the first year, the home warranty should cover home repairs in conjunction with the manufacturers' warranties on many of the products used within your home. One year after closing, a service technician should walk through the home one last time to review and address any issues covered by the home warranty.

Beyond that, most warranties will cover major structural items for up to 10 years. However, ask your homebuilder if they have ever been willing to go above and beyond what is technically covered under the home warranty to solve any problems that have arisen. These examples will help establish the level of commitment the homebuilder has to their customers, their reputation and the communities they build.