What a New-Home Warranty Actually Covers in Georgia, Year by Year
Quick answer: Most new-home warranties follow a "1-2-10" pattern: one year for workmanship and materials, two years for major systems such as plumbing, electrical and HVAC, and ten years for major structural defects. Georgia requires licensed residential contractors to offer a written warranty, but it does not set the length. Your contract's warranty is what actually applies.
A new home should come with a clear promise about what happens if something goes wrong, yet the warranty is often a few pages nobody reads until a crack shows up. This guide explains the typical structure year by year, what Georgia requires and the claim steps Georgia law sets out.
This article is general information, not legal advice. For a specific problem, talk to a Georgia attorney.
Does Georgia require builders to give a warranty?
Yes, in a limited way. Under Georgia's State Licensing Board for Residential and General Contractors rules, a licensed residential contractor must offer a written warranty with each contract to build a single-family home above the rule's contract-value threshold (Rule 553-7-.01). The rule does not set a minimum length. It requires the warranty to spell out:
- What work is covered
- What is excluded
- The standards used to judge the work, which must be the National Association of Home Builders' Residential Construction Performance Guidelines
- How long the warranty lasts and when it starts
- How to file a claim
- How the contractor may respond: repair, replacement or payment
- Which manufacturer warranties are passed on to you
The contractor must attach the warranty, or a blank copy of the standard form, to the contract or otherwise make it available before you sign. So the length and scope are set by your contract, not by state law.
What does a typical new-home warranty cover, year by year?
Most US builder warranties follow this 1-2-10 pattern. 2-10 Home Buyers Warranty describes the standard builder's warranty as covering workmanship and materials for one year, systems for two years and structural defects for ten years (2-10 HBW, February 2024). Terms vary by builder and contract, as ConsumerAffairs notes. The common structure:
| Period | What is typically covered | Examples | Who usually backs it |
|---|---|---|---|
| Year 1 | Workmanship and materials | Drywall cracks beyond normal limits, trim and flooring defects, doors and windows that stick or leak, paint and tile problems | The builder |
| Years 1 and 2 | Major systems | Plumbing supply and drain lines, electrical wiring, HVAC ductwork and distribution | The builder, or a third-party warranty company |
| Years 1 through 10 | Major structural defects | Foundation, load-bearing walls, beams, floor and roof framing failures that affect the home's structure | Often a third-party, insurance-backed warranty |
| Throughout | Manufacturer warranties | Appliances, water heater, HVAC equipment, roofing shingles, windows | The manufacturer, passed to you by the builder |
What does "workmanship" mean in year one?
Year one covers finish work and materials, judged against a written standard: in Georgia, the NAHB Residential Construction Performance Guidelines, which NAHB calls the most widely used reference for how a home should perform during the warranty period (NAHB). The guidelines say, for example, how wide a drywall or slab crack can be before it counts as a defect. Some settling, small cracks and nail pops are normal in a new house's first year.
What counts as a "system" in year two?
The systems tier covers the plumbing, electrical and HVAC distribution the builder installed: pipes, wiring and ducts. The equipment itself, such as the furnace, air conditioner and water heater, usually falls under the manufacturer's warranty.
What does the ten-year structural warranty really cover?
Less than most people expect. It usually covers actual failure of load-bearing parts, such as the foundation, beams, load-bearing walls and floor and roof framing, that makes the home unsafe or unlivable. Cosmetic cracks, minor settling and items covered in years one and two are usually not included.
What is usually not covered?
According to ConsumerAffairs, common exclusions include:
- Appliances and items covered by a manufacturer's warranty
- Normal wear and tear, and normal shrinkage and expansion of materials
- Damage from homeowner neglect or lack of maintenance
- Weather events and acts of nature
- Work done by the homeowner or by outside contractors
- Financial losses, such as temporary housing during repairs
What happens if you have a construction defect claim in Georgia?
Georgia's Right to Repair Act, O.C.G.A. Sections 8-2-35 through 8-2-43, sets out steps you must follow before suing a builder over a construction defect, and the Georgia Attorney General's Consumer Protection Division explains that skipping them can affect your claim. Builders must tell buyers about the Act in their contracts. The deadlines below come from O.C.G.A. 8-2-38.
- Send written notice at least 90 days before filing suit. Describe each defect and its results, and include any reports, photos or videos. Send it by certified mail or overnight delivery, return receipt requested.
- The contractor responds within 30 days. It may offer to settle without inspecting, or propose an inspection.
- Allow the inspection within 30 days if one is proposed.
- The contractor makes a written offer within 14 days after the inspection: to repair, to pay, both, or to explain in writing why it will not.
- Accept or reject in writing. If you do not answer a repair offer within 30 days, the law treats it as accepted. A rejection must give your reasons, and the contractor then has 15 days to make a supplemental offer.
Each newly found defect needs its own notice. The notice step does not apply to claims for personal injury or death.
How long can a construction claim be brought in Georgia?
Georgia's statute of repose sets an outer limit of eight years after substantial completion for most claims over defective design or construction (O.C.G.A. 9-3-51). If an injury occurs in the seventh or eighth year, a claim may be brought within two years of the injury, but never more than ten years after substantial completion. Other deadlines may be shorter, so talk to an attorney promptly about a serious defect.
The wrong way vs. the right way to use a new-home warranty
Most warranty disappointments come from habits, not fine print.
| The wrong way | The right way |
|---|---|
| Reading the warranty for the first time when something breaks | Reading it before you sign the contract, when Georgia requires it be made available |
| Reporting problems by phone as they come up | Keeping a list and reporting in writing, with photos |
| Assuming "ten-year warranty" covers everything for ten years | Knowing the ten-year tier usually covers only major structural failure |
| Calling the builder about a broken dishwasher or water heater | Registering manufacturer warranties and calling the manufacturer first |
| Skipping gutters, grading, caulk and HVAC filters | Doing routine maintenance, since neglect is a common exclusion |
| Filing a lawsuit over a defect before anything else | Following the Right to Repair Act notice steps first |
Advantages of builder-backed and third-party-backed coverage
Many warranties combine the two, with the builder backing years one and two and a third-party company backing the structural tier. Ask who backs each part of yours.
Advantages of builder-backed coverage
- You deal with the people who built the house and know how it went together.
- Repairs can often be scheduled directly, without a separate claims company.
- The same crew that did the work can return to fix it.
Advantages of third-party-backed coverage
- A structural claim does not depend only on the builder.
- The coverage comes in a written booklet with its own claim process.
- Some third-party coverage transfers to a later owner, depending on the terms.
- Coverage is often insurance-backed for the long structural period.
When to do what
- Before you sign the contract: read the warranty, ask who backs each tier and check the transfer terms.
- At closing: note the start date, get the warranty booklet and register manufacturer warranties for appliances and equipment.
- During year one: keep a list of workmanship items and report them in writing. Ask whether your builder schedules a check-in before year one ends.
- Before year two ends: have plumbing, electrical and HVAC distribution checked while the systems tier still applies.
- Every year after: keep up gutters, grading, caulk and HVAC filters, and report any sign of structural movement in writing right away.
Ask to see the warranty before you choose a builder
Ironwood Construction Group is a family-owned builder, founded in 2008 by Clay Ortiz, who builds with his son Levi. We build custom homes and remodels in Dacula, Sugar Hill and across north Gwinnett and Hall County under Georgia residential-light commercial license RLCO003511, and you talk to the builder directly, before and after closing. If you would like to see our warranty before you decide on a builder, talk to the builder.
Frequently asked questions about new-home warranties in Georgia
Is a builder warranty required in Georgia?
Yes. Licensed residential contractors must offer a written warranty with each contract to build a single-family home above the rule's contract-value threshold. The rule sets what it must describe, not how long it lasts.
What is a 1-2-10 warranty?
The most common structure: one year for workmanship and materials, two for major systems and ten for major structural defects. Terms vary by builder.
Are appliances covered by a builder warranty?
Usually not by the builder. Appliances, the water heater and HVAC units generally fall under manufacturer warranties the builder passes on to you.
What is Georgia's Right to Repair Act?
It is O.C.G.A. 8-2-35 through 8-2-43, which requires written notice of a defect at least 90 days before suing and gives the contractor a chance to inspect and offer a repair or payment.
Does a new-home warranty transfer if I sell the house?
It depends. Some coverage transfers and some does not, and builder and third-party terms can differ. Check the transfer terms in your booklet.
Sources
- Georgia Secretary of State, Rules of the State Licensing Board for Residential and General Contractors, Rule 553-7-.01, "Written Warranty," effective August 4, 2008
- O.C.G.A. Section 8-2-38, via Justia, 2024 Code of Georgia
- Georgia Attorney General Consumer Protection Division, "Right to Repair Act"
- Georgia Attorney General Consumer Protection Division, Consumer Ed, "Suing a Builder"
- O.C.G.A. Section 9-3-51, via Justia
- National Association of Home Builders, "New Edition of Residential Construction Performance Guidelines Now Available," August 2022
- 2-10 Home Buyers Warranty, "What a Standard Builder's Warranty Covers," updated February 27, 2024
- ConsumerAffairs, "What Is a Homebuilders Warranty?", updated March 28, 2026