The 1-2-10 warranty in plain English

Most production homebuilders in Oregon include a 1-2-10 structural warranty on a new build. It's better than nothing. It is not bumper-to-bumper coverage. Here's the breakdown.

What the three numbers mean

Year 1 — workmanship and materials

Year one is the broadest coverage. It covers defects in workmanship and materials throughout the home: paint, trim, cabinets, drywall, fixtures, appliances, the works. The builder's expectation is that you'll do an 11-month walkthrough (right before the workmanship year ends) and write up everything that needs attention. Take that walkthrough seriously. Bring Kaz, or bring a third-party inspector.

Year 2 — mechanical systems

Year two narrows. It typically covers the major mechanical systems: plumbing, electrical, HVAC. Cosmetic issues are no longer in scope. If your A/C compressor fails in month 22, year two is what you reach for. If the trim around a window pops in month 22, you're on your own (or your homeowners insurance is, depending on cause).

Years 3-10 — structural only

Years three through ten cover "major structural defects" only. The bar is high: foundation failure, load-bearing wall failure, roof truss failure. A leaky bathroom in year four is not a structural defect. A cracked slab in year seven might be, depending on cause.

Where the buyer is on the hook

• Cosmetics after year 1. Cabinet doors that warp, grout that cracks, paint that fades — those are yours.
• Damage you cause. Anything you broke, modified, or contracted out is excluded.
• "Normal wear and tear." The exclusion list reads broadly. Read it.
• Landscaping and irrigation. Usually excluded after a short period (often 30 to 90 days).
• Appliances past year 1. Appliance warranties pass to you from the manufacturer (typically 1 year). The builder warranty doesn't extend them.

What Kaz tells her buyers to do

1. Do the 11-month walkthrough. Not the 12-month — you want the report submitted before the workmanship year closes. Write up everything, even small things.
2. Keep a binder. Every appliance manual, paint color, finish brand, and contractor business card the builder hands you at close goes in it. You'll need it in years 3 through 10.
3. Get a third-party warranty inspection before close. The pre-close walk with the builder catches the obvious things. A separate inspector with no relationship to the builder catches the rest.
4. Know what your warranty company is. The structural piece is often underwritten by an outside warranty company (2-10 Home Buyers Warranty is common in this space). The builder hands off years 3 through 10 to that company. Your file is with them, not the builder.

A caveat about extended home warranty plans

You'll be offered an extended home warranty after close. These plans (different from the 1-2-10 structural warranty) typically cap payouts around $5,000 per system in our market. Oregon HVAC replacement runs $10,000–$15,000. That cap matters. Read what's excluded and what the per-item payout cap is before paying for one.

Updated May 19, 2026