New Construction Warranties Explained: What’s Covered and What’s Not in Wilmington, NC

By Thirty4 North Properties Group

Buying a new construction home in Wilmington, North Carolina, is an exciting step. From modern layouts and energy-efficient systems to coastal-inspired architecture, new builds offer a fresh start in one of the most desirable markets along the Carolina coast. But even brand-new homes come with important considerations, and one of the most misunderstood is the builder's warranty.

At Thirty4 North Properties Group, we believe informed buyers make confident decisions. Understanding what your new construction warranty covers, what it excludes, and how it applies in Wilmington’s coastal environment can protect your investment and prevent frustration down the road.

This guide breaks it all down so you know exactly what to expect before and after closing.

A new construction warranty is a written agreement provided by a builder that outlines their responsibility to repair or replace certain defects in workmanship, materials, or systems for a specific period of time. This differs from homeowners' insurance, which protects against unexpected events such as storms or fires.

A builder's warranty focuses on how the home was built.

In North Carolina, builders are not legally required to offer a warranty, but most reputable builders do. The scope and length of coverage vary, which is why carefully reviewing warranty documents is essential when purchasing new construction in Wilmington and its surrounding communities.

Most new construction warranties follow a tiered structure that separates coverage by time frame and by system. While details differ by builder, these are the most common components.

The first year after closing is when most construction-related issues surface. During this period, warranties typically cover defects caused by improper installation or poor workmanship, including drywall cracking beyond normal settling, paint defects, flooring issues, roofing leaks, plumbing leaks, electrical malfunctions resulting from installation errors, and HVAC issues related to construction rather than normal maintenance.

This is also when buyers should be especially attentive. Keeping a running list of concerns during the first year allows you to submit a comprehensive warranty request before coverage expires.

Mechanical systems often carry extended coverage beyond the first year. Plumbing, electrical, and HVAC systems are typically covered for up to two years if problems are tied to installation defects.

Examples include recurring electrical failures, persistent plumbing issues behind walls, or HVAC systems that fail prematurely due to improper setup. Manufacturer warranties for individual components may also apply and sometimes extend even longer.

Structural warranties provide long-term protection and are often backed by third-party providers. These warranties typically cover major structural defects that compromise the home's integrity, including foundation failure, excessive settling, load-bearing wall issues, and structural roof framing problems.

In Wilmington, where soil conditions and moisture levels vary by neighborhood, structural coverage is especially important for long-term security.

Equally important is understanding what builder warranties typically exclude. Many disputes arise simply because expectations do not align with warranty language.

Normal wear and tear is not covered. Cosmetic changes that occur over time, such as minor cracks from settling, fading finishes, or surface scuffs, are considered part of homeownership. Damage caused by a lack of maintenance is also excluded. Coastal homes require consistent upkeep due to humidity and salt air. If a problem results from neglected maintenance, the builder is unlikely to approve the claim.

Natural disasters and weather-related events are not covered under builder warranties. Hurricanes, flooding, and storm damage fall under homeowners' insurance, which is especially important in coastal North Carolina.

Alterations made after closing can void portions of the warranty. Renovations, additions, or modifications to systems may remove builder's responsibility for those areas.

The coastal climate of southeastern North Carolina plays a role in how new homes perform. High humidity, salt exposure, and seasonal storms can affect materials differently than in inland markets. Some changes are expected and not considered defects.

Builders in Wilmington may offer in-house warranties or use third-party warranty companies. Third-party warranties often provide added peace of mind because claims are reviewed independently.

Buyers should also pay close attention to reporting timelines. Most builders require issues to be submitted in writing within specific time frames. Missing a deadline can result in denied coverage, even if the issue would otherwise qualify.

Getting the most value from your warranty requires proactive ownership. Document concerns early and thoroughly. Photos, videos, and written descriptions help support claims and speed up resolution.

Schedule a professional inspection before closing and again near the end of your first year. Even brand-new homes can have hidden issues that trained inspectors catch quickly. Read the homeowner's manual provided by the builder. Many warranties require specific maintenance steps to remain valid.

Understand which items are covered by the builder and which fall under manufacturer warranties. Appliances, HVAC units, and roofing materials often have separate coverage periods.

Many buyers assume a new home means no future repairs. In reality, warranties are designed to address construction defects, not eliminate maintenance or normal ownership responsibilities. Another misconception is that builders must fix every issue immediately. Most warranty processes involve inspections, scheduling, and reasonable repair timelines.

Finally, a builder's warranty does not replace homeowners' insurance. Both are essential and serve very different purposes.

Most warranties include one year of general coverage, two years for mechanical systems, and up to ten years for structural components.

Some warranties transfer to future owners, which can add resale value. Transferability depends on the specific warranty terms.

If a third-party warranty is involved, buyers may have the option to appeal or request mediation. Clear documentation strengthens your position.

Yes. Inspections help identify defects early while they are still covered under warranty.

Structural repairs are among the most expensive issues a homeowner can face. Long-term structural coverage provides critical protection.

Buying or building a new home in Wilmington, NC, should feel exciting, not uncertain. At Thirty4 North Properties Group, we guide our clients through every detail of the new construction process, including understanding warranties, selecting reputable builders, and protecting long-term value.

If you’re considering new construction or want expert guidance before making your next move, connect with Thirty4 North Properties Group today. Connect with the team today to start your journey with a trusted local real estate authority.