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Buying a new home is one of the biggest financial decisions most people make, and with that investment comes questions about protection and peace of mind. Yet warranties and coverage often cause confusion and misinformation, especially for homebuyers in Louisiana.

In this article, we’ll break down the most common home warranty myths and share facts that help you make informed decisions. We’ll also explain how the Louisiana New Home Warranty Act works, clarify how builder warranties differ from optional home warranties, and show how Alvarez Construction’s 5-2-1 warranty supports buyers long after closing .

Why Home Warranty Confusion Happens

When people hear “home warranty,” they often mix up different kinds of protection, from builder warranties to optional home service plans and homeowners insurance. Each has its own role, but misunderstanding them causes buyers to either overestimate coverage or miss out on valuable protections.

In Louisiana, there’s also a state law, the Louisiana New Home Warranty Act, that requires builders to provide specific warranties with new construction, and many buyers are unaware of exactly what it covers LSU Contractors Board. Let’s separate myth from fact so you can understand how your home is protected, and what’s really worth investing in.

Common Home Warranty Myths vs. Facts

Myth 1: “New Homes Don’t Need Any Warranty, Everything Is Perfect.”

Fact: Even brand-new homes can have defects or issues that only show up after occupancy. A builder’s warranty covers construction defects and systems for set periods, but it doesn’t cover everything, and it doesn’t last forever.

New construction still depends on workmanship and materials, and slight settlement, system adjustments, or workmanship issues can occur after move-in. That’s why builder warranties exist, to give you peace of mind knowing the builder is responsible for fixing covered defects, especially when you buy from a builder that clearly explains its warranty like Alvarez Construction .

Myth 2: “Builder Warranties Cover Appliances and Everything in the Home.”

Fact: Builder warranties, like those required in Louisiana, focus on structural elements and major systems, not appliances or add-on equipment.

Under Louisiana law, builders must warrant:

• 1 year: the home is free from defects due to noncompliance with building standards or poor workmanship.
• 2 years: plumbing, electrical, heating, cooling, and ventilating systems are free from defects due to poor workmanship or building standard violations.
• 5 years: the home is free from major structural defects (FindLaw Codes).

But appliances, fixtures, landscaping, fences, and cosmetic items are usually not covered by these warranties, and those items typically have manufacturer warranties, not builder warranties (Justia Law). That’s why homebuyers often see appliance manuals left behind after closing, because those warranties are separate and not part of the builder’s coverage.

Myth 3: “A Home Warranty and Homeowner’s Insurance Are the Same.”

Fact: They’re completely different.

• Homeowner’s insurance protects against perils like fire, theft, or storm damage.
• A builder warranty protects you from defects tied to construction and workmanship for set periods.
• An optional home warranty (purchased separately) can cover things like appliances and home systems after the builder’s warranty expires.

Think of it like this: Insurance protects against disaster; warranties protect against breakdowns or construction defects, and together they create a more complete protection plan for your home.

Myth 4: “You Don’t Need a Warranty Because Louisiana Law Has Your Back.”

Fact: It is true that Louisiana law, the New Home Warranty Act, mandates minimum builder warranties on new homes, but the law sets coverage limits and exclusions you need to understand.

Here’s what the law covers:

• 1-year warranty for defects in materials and workmanship.
• 2-year coverage for major systems like electrical, plumbing, HVAC.
• 5-year protection against major structural defects that make the home unsafe or unsanitary.

But it does not cover everything:

• Landscaping, fencing, and sod.
• Detached structures or driveways.
• Damage caused by negligence or misuse.
• Consumer additions made after occupancy.

So yes, the law provides strong basic protections, but it doesn’t mean your home is guaranteed against every issue forever, which is why choosing a builder who clearly outlines coverage like Alvarez matters .

Myth 5: “Home Warranties Always Scam Buyers.”

Fact: While there are legitimate scams in the broader warranty world, like letters pretending to be from your mortgage servicer offering cheap warranty plans, real builder warranties and reputable home warranty plans are legitimate protections when understood correctly.

Scammers typically:

• Claim coverage that doesn’t exist.
• Try to sell “required” warranties that aren’t.
• Use misleading language to pressure buyers.

Always read the fine print, check references, and consult professionals before signing any warranty contract, and lean on resources like your builder’s warranty information page for clarity .

Builder Warranties vs. Optional Home Warranty Plans

To make sure you’re clear on differences:

Understanding this distinction helps you evaluate what you’re getting, and what you might choose to add later as your home ages.

Alvarez Construction’s 5-2-1 Warranty Explained

One of the benefits of buying a new home from Alvarez Construction is the 5-2-1 warranty structure, which mirrors Louisiana’s statutory requirements and offers homeowners clear expectations for coverage periods.

What the 5-2-1 Warranty Covers

5 Years – Structural Defects
Alvarez warrants that the home will remain free from major structural defects for five years after the warranty commencement date, with major structural defects typically affecting foundations, load-bearing walls, beams, and similar core elements—anything that compromises the home’s fitness as a dwelling.

2 Years – Systems Coverage
Core systems like plumbing, electrical, heating, cooling, and ventilating are covered for two years, meaning if something goes wrong with those systems due to construction workmanship or failing to meet building standards, Alvarez will address it.

1 Year – Workmanship & Materials
For the first year, the warranty covers defects in materials or workmanship that aren’t linked to structural issues, ensuring even cosmetic concerns get the builder’s attention early on.

This layered approach gives homeowners peace of mind at every stage, from move-in to well past the first few years of living in a new home, especially when combined with Alvarez’s path to ownership resources .

How Alvarez’s Warranty Differs from Others

While some builders may offer extended third-party warranties or optional add-ons, Alvarez’s built-in warranty is part of the contract and adheres to Louisiana’s legal requirements under the New Home Warranty Act.

This means:

• Buyers don’t have to purchase separate coverage for basic protections.
• The warranty is mandated by state law, not optional add-on sales pressure.
• Coverage durations are clear and structured, so expectations are aligned from day one.

Plus, Alvarez’s team guides buyers through the warranty process, from reporting issues to understanding timelines, making claims less intimidating and more straightforward, with tools like their online warranty checklist and contact page .

FAQ: Answering Common Buyer Questions

Q: When does the warranty start?
A: The warranty typically begins at the warranty commencement date, either when legal title transfers or the home is first occupied, which marks the start of your coverage periods under the New Home Warranty Act.

Q: Do I need a home warranty on top of the builder’s warranty?
A: Not usually for structural or construction issues, but some homeowners choose optional home warranties if they want extra coverage for appliances or mechanical systems after the builder warranty expires.

Q: What happens if the builder doesn’t fix a covered issue?
A: Louisiana’s New Home Warranty Act gives buyers the right to pursue remedies if a builder fails to comply with statutory obligations, including repair or replacement of covered defects.

Tips for Choosing the Right Warranty

Whether you’re buying new construction or thinking about optional coverage, here’s how to approach your decision:

1. Read the Warranty Document Carefully
   Understand what’s covered, the duration, exclusions, and any homeowner responsibilities, and review your builder’s official warranty information for specifics .
2. Understand the Difference Between Builder and Home Warranty
   Builder warranties are standard coverage for new homes, while home warranties are optional add-ons that cover items outside the builder scope.
3. Keep Records of Communications
   Write and save correspondence about any issues, especially if they occur early in the warranty period, and use any builder-provided checklists to stay organized.
4. Ask Questions
   Don’t hesitate to ask your builder about how claims are handled, timelines for repair, and what types of issues are covered, and reach out through channels like Alvarez’s FAQ page and contact form .

Conclusion: Get the Facts, Protect Your Investment

Warranties aren’t just legal jargon; they’re valuable protections that help you feel secure in your new home, especially when you understand how Louisiana’s laws and your builder’s policies work together. By separating myth from fact and understanding how Louisiana’s laws work, you’ll be better prepared to make informed decisions and avoid common pitfalls.

With Alvarez Construction’s 5-2-1 warranty, buyers get a clear roadmap of what’s covered and when, with specific commitment from a trusted builder that stands behind the work and provides dedicated warranty support resources . Have questions about home warranty myths, coverage details, or how Alvarez Construction supports buyers after move-in? Contact our team to get personalized explanations and expert guidance before you buy .