Indiana's new home warranty statute sets a warranty of two years against defects from faulty workmanship or defective materials, four years on the roof and roof systems, and ten years against major structural defects, all counted from the warranty date (Indiana Code 32-27-2-8). A builder who provides those warranties, with insurance behind them and a separate notice you sign, can disclaim the implied warranties that would otherwise apply (IC 32-27-2-9). The actual coverage you get is in your builder's warranty document, so read it before you sign.
12 questions to ask the sales rep, eight builder-contract red flags, and a pre-drywall checklist you can print and take to the site.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. Before real estate I spent about ten years designing homes and managing their construction for a custom builder in Hamilton County. I drew the blueprints and ran the jobs, so I know what goes on behind the drywall and what to check before it's covered up.
A warranty is only as good as the paper and the company behind it. Ten years of building taught me which problems show up in year one and which show up in year eight, so here's what to look for.
Indiana Code 32-27-2-8 lays out the statutory new home warranties a builder may provide:
| Covers | Term from warranty date |
|---|---|
| Defects from faulty workmanship or defective materials | 2 years |
| Roof and roof systems (same defect standard) | 4 years |
| Major structural defects | 10 years |
A builder isn't required to use the statutory warranty. If they don't, the implied warranties Indiana law applies to a new home stay in place.
A builder can disclaim the implied warranties only by following IC 32-27-2-9: providing the statutory warranties, backing them with insurance, and giving you a separate written notice that you acknowledge (Indiana Code 32-27-2-9). If you're handed a separate warranty disclaimer to sign, that's what's happening. It's normal with larger builders; just understand that the statutory warranty is then your coverage, and ask who insures it.
Many do. The warranty document comes from a warranty company and the builder is the first responder on claims. Ask three things: who pays if the builder goes out of business, what the structural definition excludes, and how a dispute is resolved (many use binding arbitration). Keep the document with your closing papers; you'll want it in year nine, not just year one.
In the warranties I've read: cosmetic items not noted at your final walk-through, normal settling and shrinkage cracks within stated tolerances, appliances and systems covered by the manufacturer instead, landscaping and grading after a set period, damage from lack of maintenance, and anything you or another contractor changed. The tolerances are specific, a crack of a certain width or a floor out of level by a certain amount, which is why the walk-through list matters so much.
In writing, every time. Note every cosmetic item at the final walk-through and get the list signed. Keep a running list during year one and send it before the first-year coverage ends; many builders schedule an 11-month visit for this, and if yours doesn't, ask. For anything structural or a water problem, send photos and a written notice the day you find it. Builders fix what's documented.
No. A warranty fixes problems after you find them; an inspection finds them before the walls close. The pre-drywall inspection is your one look at the framing, wiring, plumbing and ductwork, and a final inspection before closing catches what goes on the walk-through list. Indiana law says a home inspection isn't a code inspection (IC 25-20.2-2-6), so the city's sign-off and your inspector's report are two different things.
Often the structural coverage does and the shorter terms may not; it depends on the warranty document. If you sell within ten years, a transferable structural warranty is a selling point, so keep the paperwork and ask the builder for the transfer form when you list.
More new construction answers: What to check at a pre-drywall inspection, Should I buy new construction or a resale home?, How the Indiana home inspection period works, Do I Need a Realtor to Buy New Construction in Indiana?. Everything I've written on buying new is on the Resources page, and every builder's available homes are on New Home Builds.
Send it to me before you sign. I'll tell you what the tolerances mean in practice, what I'd note at the walk-through, and when to schedule the pre-drywall inspection.
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This page is general information, not legal advice. Your builder's warranty document and the Indiana Code control; read both and ask a real estate attorney about your contract.