Home warranty vs builder warranty vs inspection — what each one actually covers (and which to pay for)

Home inspection (always pay for, never skip)

Cost: $300-$600 typical; $600-$1,200 large homes.

What it does: licensed inspector walks the property + creates a detailed report on visible defects, code-issue red flags, and deferred maintenance.

What it doesn't do: NOT a warranty; NOT a guarantee; finds only what's accessible + visible during the 2-4 hour inspection.

Useful for: ordering specialty inspections (sewer scope, mold, structural engineer, pest, chimney) based on the general inspector's red flags.

Negotiation power: use to request seller credits, repairs, or walk away during inspection-contingency period.

Builder warranty (new construction only)

Cost: included in purchase price of new-build.

What it covers: legally mandated coverage on new construction. Typical structure:

Year 1: workmanship + materials (paint, flooring, fixtures, HVAC adjustments, etc.).

Years 1-2: systems (plumbing, electrical, HVAC, mechanical).

Years 1-10: structural defects affecting load-bearing components (foundation, roof structure, exterior walls).

What it doesn't cover: normal wear, owner-caused damage, appliances (those come with manufacturer warranties), landscaping.

How to use: file claims in writing within deadline; many states give buyers 2-year statute of limitations after defect discovery, not after sale date.

Home warranty / home service contract (mostly a scam, occasionally useful)

Cost: $400-$1,000/year; $50-$150/service call fee per claim.

What it sells: a contract to cover repair/replacement of major systems + appliances when they fail from normal wear.

Reality check: Better Business Bureau + state insurance regulators receive thousands of complaints annually about denied claims, slow service, and forced low-quality contractor networks. Coverage limits are often $500-$1,500 per item, far below actual replacement cost.

When it's useful: investor properties (managed remotely) + sellers offering 1-year free coverage to close a deal (cost to seller is $400; reduces buyer's contingency demand).

When it's NOT useful: owner-occupied homeowner who can afford repairs out-of-pocket. The math rarely works out vs. building an emergency fund.

Reputable providers: AHS (American Home Shield), Choice, Cinch, 2-10 Home Buyers Warranty. AVOID Liberty Home Guard + Select Home Warranty per recent complaint volume.

Specialty inspections — when to add

Sewer scope ($150-$400): always for homes 20+ years old. Cast-iron pipe + Orangeburg pipe failures cost $5k-$25k.

Pest/termite ($75-$200): required for VA + USDA loans; cheap insurance otherwise.

Mold ($300-$1,500): only if visible water damage or musty smell. Don't be sold preventive mold tests.

Structural engineer ($400-$1,500): if cracks, sloped floors, or basement-wall bulging visible.

Radon ($150-$300): always in Zone 1 + 2 counties (see /topic/radon-zones/).

Pool ($150-$300): if property has one. Pool replumb runs $8k-$25k.

Roof certification ($150-$500): if roof age + condition concerns; insurance requires for some coastal/wildfire properties.

What zipradar shows

Topics that drive specialty-inspection priority: /topic/radon-zones/ + /topic/wildfire-risk/ + /topic/flood-zone/ + /topic/lead-pipes/.

/learn/property-tax-millage-explained/ + /learn/closing-costs-buyer-breakdown/ for total carrying cost beyond purchase + warranty.