The Illusion of Protection: How Texas Home Builders Use Express Warranties That Cover Almost Nothing

If you’ve bought a new home in Texas, there’s a good chance your builder handed you a thick packet labeled “Express Warranty.” It might look official, even reassuring. But dig into the fine print, and you’ll often find a troubling reality: the warranty is designed less to protect the homeowner and more to protect the builder.

What Is an Express Warranty?

An express warranty is a written guarantee from a builder promising to fix defects or issues in your home for a certain period. Sounds fair—until you realize how these warranties are written.

Most builder warranties in Texas are tightly drafted by legal teams hired to limit liability. On the surface, they claim to provide broad coverage, but they’re packed with exclusions, disclaimers, and loopholes that make actual claims nearly impossible.

Common Tactics Builders Use

Here’s how builders use express warranties to avoid responsibility:

1. Extremely Narrow Definitions
   Builders often define what counts as a “defect” so narrowly that common construction problems don’t qualify. For example, if your foundation cracks but doesn’t “impact structural integrity,” it may not be covered.
2. Exclusion Overload
   Many warranties exclude damage from “natural causes”—which can include normal soil movement, weather, or humidity. In Texas, where clay soil and intense weather are common, this wipes out much of the coverage. Even more shocking: many warranties specifically exclude coverage for violations of building codes. So if your builder cuts corners or ignores the code, and it causes problems later, the warranty likely won’t help you. That leaves homeowners stuck with the cost of fixing issues they never caused.
3. Short Time Frames for Key Issues
   Surface-level cosmetic defects might be covered for a year, but more serious issues—like HVAC problems or plumbing—may have shorter-than-expected coverage windows. Miss that window, and you’re on your own.
4. Mandatory Arbitration
   Almost all builder warranties require disputes to be resolved through arbitration, not court. Arbitration is often biased toward the builder, with limited rights for the homeowner and no option to appeal.
5. Warranty as a Shield
   Most importantly, builders often use the warranty as a legal shield to block homeowners from filing lawsuits under broader consumer protection laws, like the Texas Deceptive Trade Practices Act (DTPA). They argue that the warranty is the exclusive remedy, even when the problem is major.

What Can Homebuyers Do?

• Read Before You Sign
  Don’t assume the warranty is there for your benefit. Read it line by line, and ask questions. If it’s full of exclusions, recognize that you may not have much protection.
• Get a Third-Party Inspection
  Hire a qualified independent inspector before closing, i.e. an ICC-certified R5 Residential Combination Inspector. Don’t rely on the builder’s assurances or underperforming Texas Real Estate Commission (TREC) home inspectors.
• Know Your Rights Under Texas Law
  You still have rights under the DTPA and common law, even if the builder pushes the warranty as the only remedy. If your home has serious issues, talk to an attorney who handles construction defect cases.
• Push for Legislative Reform
  Texas lawmakers could easily require minimum standards for builder warranties, or at least greater transparency. Until then, homebuyers are left navigating legal minefields on their own.

Final Thought

Builder warranties in Texas often give the illusion of security while offering little real protection. They’re not written for you—they’re written to protect the builder. If you’re buying a new home, don’t assume the paperwork has your back. Read it. Question it. Ask an attorney about it. And know what you’re really getting.