Two Documents, Two Different Jobs
A builder warranty comes from the builder and covers workmanship, systems, and structural defects on the home they built you. A home warranty is a service contract you buy from a third-party company that covers repairs or replacements on major systems and appliances when they break from normal use. On brand new construction along the Grand Strand, the builder warranty is what actually protects you the first year. A third-party home warranty is mostly redundant at that stage.
Here's the thing. A lot of buyers walk into a new construction closing thinking one document covers everything. It doesn't. Each warranty has different coverage windows, different claim processes, and different exclusions. Knowing the difference before closing is the difference between an easy repair call and a fight with two companies pointing at each other.
What a Builder Warranty Covers
Most builders on the Grand Strand — from national builders like D.R. Horton, Lennar, and Pulte to regional builders active around Longs, Conway, and Carolina Forest — issue a written warranty at closing. Typical coverage looks like this:
- Workmanship and materials for a defined period (often one year)
- Mechanical systems like plumbing, electrical, and HVAC for a longer window (often two years)
- Major structural defects for the longest window (often ten years, sometimes backed by a third-party structural warranty company)
Every builder issues these on different schedules and with different exclusions. Get the actual warranty document in writing before closing and read it. Ask your Myrtle Beach real estate agent to walk through it with you, and if anything feels unclear, ask the closing attorney to review it too. South Carolina is an attorney-closing state, so you already have legal representation involved.
What a Home Warranty Covers
A home warranty is a private service contract, not a builder obligation. It covers repair or replacement of major systems and appliances that fail from normal use during the term of the contract. Standard coverage includes HVAC, plumbing, electrical, water heater, kitchen appliances, and washer/dryer. Add-ons often include pool, spa, well, septic, and second refrigerators.
What it does not cover is workmanship defects, structural issues, code violations, or anything the builder was supposed to fix. Those go back to the builder under the builder warranty. Home warranties also exclude cosmetic issues and damage from neglect.
Where the Two Overlap — and Where They Don't
During the first year on a new build, the builder warranty and a home warranty overlap heavily on systems like HVAC, plumbing, and electrical. That's why buying a third-party home warranty on year one usually isn't worth it. The builder is on the hook already.
Where they don't overlap:
- The builder warranty covers workmanship and structural defects the home warranty never touches
- The home warranty covers appliances and normal-use failures the builder warranty may not include
- Once the builder's mechanical systems coverage expires (often after year two), a home warranty starts to make more sense as ongoing protection
How Claims Actually Work
Builder Warranty Claim
Contact the builder's warranty department, not a random subcontractor. Most builders have a formal warranty request process that's spelled out in the closing packet. Keep everything in writing. Document with photos. Give the builder a reasonable window to respond before you escalate. If the issue involves a structural defect, the builder may bring in the third-party structural warranty company that backs the coverage.
Home Warranty Claim
Call the warranty company directly. They dispatch an approved technician, you pay a flat service call fee, and the company decides what's covered under your contract. If a repair is denied, ask for the specific contract language they're relying on. This is why reading the sample contract matters before you sign anything.
Common New Construction Pitfalls to Avoid
- Missing warranty registration deadlines with the builder or third-party structural warranty company
- Calling a random contractor instead of the builder for a covered issue, which can void portions of the coverage
- Assuming everything is covered instead of reading the warranty document
- Skipping the pre-drywall walk and 11-month walk-through that many builders offer
- Buying a third-party home warranty in year one when the builder already covers the same items
The 11-month walk is one of the most valuable moves a new construction buyer can make. It gives you a chance to catch workmanship and systems issues just before the first-year builder warranty expires. Most buyers don't do it. The ones who do are the ones I see get everything fixed on the builder's dime.
When a Home Warranty Makes Sense on New Construction
Two situations where it's worth it:
- Year two or three, when the builder's systems coverage has expired and you want continued protection on HVAC, plumbing, electrical, and appliances
- If you're buying a spec home or inventory home that's been sitting a while, or a home the builder has already sold once, where the builder warranty may be shorter or have already started
For most buyers on typical new construction, the smart move is to skip the home warranty year one, do the 11-month walk, and then evaluate whether to add a home warranty as the builder's mechanical coverage runs out. Our guide to the best Longs SC neighborhoods for new construction gives more context on where new inventory is active right now.
Key Takeaways
Builder warranties and home warranties are two different products with two different sources. On new construction along the Grand Strand, the builder warranty already covers workmanship, systems, and structural defects on defined schedules, so a third-party home warranty in year one is usually redundant. Where a home warranty earns its keep is later — year two, three, and beyond — when the builder's mechanical coverage runs out and you want continued protection on the systems that fail most in coastal Carolina. Read the actual warranty documents at closing, register the coverage on time, do the 11-month walk-through, and lean on your agent and closing attorney to make sure you understand what you're actually buying.
Frequently Asked Questions
Do builder warranties in South Carolina cover the same things everywhere?
No. Coverage terms vary by builder, by project, and sometimes by community. Two homes in the same area from two different builders can have very different warranty schedules. Always read the actual document that comes with your specific closing packet.
What is the 11-month walk-through and do I need one?
The 11-month walk is a walkthrough of the home with the builder before the one-year workmanship warranty expires. It gives you a final chance to identify issues the builder should fix under warranty. Most builders offer it and most buyers skip it. Doing the walk saves real money.
Can I buy a home warranty in addition to the builder warranty?
Yes, but on year one it usually duplicates coverage the builder already provides. Most Grand Strand buyers get more value adding a home warranty in year two or three, once the builder's systems coverage has expired.
What happens if the builder goes out of business before my warranty expires?
The builder's own workmanship coverage typically ends with the company. Structural coverage backed by a third-party warranty company (common with national builders) continues even if the builder disappears. That's why the third-party structural warranty document in your closing packet matters — it survives the builder.
Who do I call first if something breaks on a new home?
Call the builder's warranty department first if the item could be a workmanship, systems, or structural issue covered under the builder warranty. Calling a random contractor instead can void that portion of your coverage. Keep every request in writing.
About Greg Harrelson
Greg Harrelson is a seasoned Realtor® with more than 30 years of experience serving the Myrtle Beach and Grand Strand markets. As the founder of Century 21 The Harrelson Group, Greg has built his career helping buyers, sellers, and investors achieve success in every corner of the coastal Carolina real estate market. His expertise spans residential homes, investment properties, land development, and coastal condos. Known for his deep local knowledge, innovative marketing strategies, and commitment to personal service, Greg consistently helps clients reach their real estate goals while navigating the ever-changing market with confidence and precision.
