New Home Warranty in Texas: The 1-2-10 Plan and What to Do Before Year One Expires
What does a new construction warranty cover in Texas?
Most new homes built by production builders in Texas come with a 1-2-10 warranty: one year of coverage for workmanship and materials, two years for major systems (HVAC, plumbing, electrical), and ten years for structural components including the foundation and load-bearing framing. But in 2026, at least one major DFW builder has shortened its structural coverage from ten years to six — and if you bought or are buying new construction in Fate, Royse City, Lavon, or Rockwall, knowing exactly what your warranty covers (and when it expires) could save you thousands. The most expensive mistake new-home buyers make isn't skipping the inspection before closing. It's forgetting to schedule one before year one ends.
By Cindy Dunnican | June 26, 2026
How the 1-2-10 Warranty Actually Works
The name tells you the structure: three tiers of coverage on a rolling timeline.
Year 1 — Workmanship and materials. This tier covers the finish-and-fit details — nail pops, sticking doors, drywall cracks, grout separation, paint quality, trim gaps, and cabinet issues. Anything you can see and point to on the day you moved in is generally covered here. You have until your one-year anniversary to document and submit these items. Miss the window and the builder can — and usually will — decline to fix them.
Years 1–2 — Major systems. Your HVAC, plumbing, electrical wiring, and ductwork are covered for two years. This is where issues from the first full Texas summer often surface: an HVAC system that can't keep up, a duct that was installed loose and is leaking conditioned air into the attic, or a plumbing connection that wasn't sealed properly. These are real issues that show up after you've lived in the home through a season or two — not during the walkthrough.
Years 2–10 — Structural coverage. Foundation and load-bearing framing are covered for a decade under most standard 1-2-10 warranties. This is the coverage that matters most on North Texas clay soil, where homes settle differently than they do in most of the country.
One important detail: the year-one and systems coverage is typically administered by the builder directly. Structural coverage is usually backed by a third-party insurance company. Ask your builder before closing who administers each tier, what the claims process looks like, and whether the structural coverage is transferable if you sell before year ten.
The 2026 Change That Buyers in DFW Need to Know About
Highland Homes — one of the larger production builders active across the DFW metro — announced a shift effective January 1, 2026: contracts signed on or after that date receive a 6-year structural and foundation warranty rather than the standard 10-year coverage.
If you signed your contract before December 31, 2025, you keep the 10-year coverage even if you're closing now. The contract date matters, not the closing date.
Other builders operating in Rockwall County and the eastern growth zones have, as of mid-2026, maintained their 10-year structural coverage. That list includes Pace Setter, Shaddock Homes, David Weekley, Stone Hollow, Bloomfield, and Perry Homes. But warranty terms change, and the only way to know what you're actually getting is to ask for it in writing at the time you sign your purchase agreement.
For buyers comparing new construction in Fate, Royse City, and Lavon — where the new home market is particularly active — this is now a legitimate evaluation factor. A 10-year structural warranty is meaningfully different from a 6-year one when you're talking about a home sitting on Blackland Prairie clay. Worth asking about before you get emotionally attached to a floor plan.
If you're working through the new construction vs. resale decision, this breakdown on builder rate buydowns covers the other major financial factor builders use to compete with resale homes right now.
What North Texas Clay Soil Does to New Homes
The Blackland Prairie clay that runs through Rockwall, Heath, Fate, Royse City, and Lavon behaves very differently from the soil most people moving from other parts of the country are used to. It swells when it gets wet and shrinks when it dries out. That movement is constant, seasonal, and it shows up inside new homes.
In year one, you'll typically see:
- Nail pops in the drywall — fasteners pushing through the surface as the framing dries out in the Texas heat
- Small cracks at the corners of windows, doors, and ceiling-to-wall transitions
- Grading changes as the lot settles, sometimes redirecting drainage toward the foundation rather than away from it
- Caulk separation at exterior trim and siding transitions, especially on south- and west-facing walls with high sun exposure
Most of this is covered under year-one workmanship. None of it will show up on a pre-closing walkthrough because the home hasn't experienced a full weather cycle yet. By month ten, it will be visible. That's exactly why the 11-month inspection exists.
Larger concerns — foundation movement beyond what's considered normal settling, structural cracking — fall under the structural tier. If you notice significant cracking in the slab, doors that no longer plumb correctly, or wall separation that's getting worse rather than better, document it immediately and put your builder on written notice. Don't wait.
For a deeper look at how foundation issues work in North Texas — including how to distinguish normal settling from something more serious — this guide covers what buyers and sellers need to know.
The 11-Month Inspection: Why It Matters and How to Use It
Schedule this between months 10 and 11. Not at month twelve. You need to give your builder time to respond and schedule repairs before the warranty window closes — and they're under no obligation to rush.
A licensed home inspector will go through the property the same way they would at any other inspection: structure, exterior, roof, attic, electrical, plumbing, HVAC, appliances, and interior finishes. The difference is that everything they find is still potentially covered. Their report becomes your formal punch list.
After you have the report:
- Submit it in writing to your builder's warranty department. Email with read receipt is the minimum. Certified mail is better for anything significant.
- Include photos for every item documented in the report.
- Date everything. Keep a copy of every submission, response, and repair record.
- Follow up in writing if you don't hear back within the timeline specified in your warranty agreement.
Verbal conversations with your site manager don't create enforceable records. Texas property code gives builders significant latitude when disputes arise — written documentation is the only thing that holds up.
Buyers who skip this step regularly discover issues at year two or three that would have cost the builder nothing to fix in year one and now cost the homeowner several thousand dollars to address on their own.
If you also want to understand the MUD and PID tax structures on your new home — which affect your property tax bill more than most buyers in Fate, Royse City, and Lavon expect — this post walks through exactly how those work.
Maintenance That Keeps Your Warranty Valid
Builder warranties generally exclude wear and damage caused by deferred maintenance. That means your behavior as a homeowner matters for coverage, not just the original workmanship.
A few things that can affect your claim if neglected:
- HVAC filters — clogged filters void most HVAC system warranty claims. Change them on schedule and keep receipts or photos as records.
- Gutters and drainage — if water is pooling against your foundation because gutters weren't cleaned, that complicates any foundation claim.
- Exterior caulking — builders expect homeowners to re-caulk around windows, doors, and exterior penetrations as part of routine upkeep. If moisture gets in because of failed caulk you didn't replace, the resulting damage may not be covered.
- Grading and landscaping — don't add soil, plants, or hardscape in ways that change drainage toward the home's foundation.
Keep records. Photos with dates, maintenance receipts, and inspection reports all become useful if you ever need to file a claim or sell before the structural warranty expires.
Frequently Asked Questions
What does the 1-2-10 builder warranty cover in Texas?
The 1-2-10 warranty covers workmanship and materials (paint, drywall, trim, flooring, doors) for year one; major systems including HVAC, plumbing, and electrical for years one through two; and structural components like the foundation and load-bearing framing for years two through ten. Coverage varies by builder, so always confirm the specific terms in writing before you close.
What is an 11-month warranty inspection and do I need one?
An 11-month inspection is an independent home inspection scheduled before your one-year builder warranty expires. A licensed inspector documents defects still covered under your warranty — nail pops, drywall cracks from clay soil movement, grading issues, HVAC performance problems — so you can submit a formal punch list to your builder while coverage is still in effect. Most new construction buyers in DFW who skip this inspection end up paying out of pocket for issues the builder would have fixed for free.
Which DFW builders are still offering a 10-year structural warranty in 2026?
As of 2026, builders continuing to offer a 10-year structure and foundation warranty include Pace Setter, Shaddock Homes, David Weekley, Stone Hollow, Bloomfield, and Perry Homes. Other builders, have made adjustments to their offerings. For example, Highland Homes shifted to a 6-year structural warranty for contracts signed on or after January 1, 2026. Always ask your builder to confirm their current warranty terms in writing — verbal representations don't hold up when you need to file a claim.
How do I submit a warranty claim to my builder in Texas?
Submit all claims in writing to your builder's warranty department — a dated email with photos is the minimum; a certified letter is better for major issues. Verbal complaints generally don't create enforceable warranty records under Texas property code. Keep a log of every submission, builder response, and repair attempt. If your builder hands off warranty administration to a third-party company after year one, confirm the handoff date and that company's contact information before your coverage transitions.
Does North Texas clay soil void my new home warranty?
No, the soil itself doesn't void coverage, but it does create conditions that generate warranty claims. The Blackland Prairie clay common to Rockwall, Fate, Royse City, and Lavon expands when wet and shrinks when dry — causing small drywall cracks, nail pops, and foundation movement that most builders treat as normal settling. True structural defects that go beyond normal movement remain covered under the structural warranty. The key is documenting issues before your coverage window closes.
Builder warranties are only as useful as how well you use them. Knowing the tiers, tracking the deadlines, and scheduling that 11-month inspection before the clock runs out are the three things that separate new construction buyers who get issues fixed from those who pay for them twice.
If you're buying new construction in Fate, Royse City, Lavon, or anywhere in the Rockwall area and want to know what questions to ask your builder — about warranty terms, lot premiums, preferred lender trade-offs, or anything else — that's exactly the kind of guidance we build into our buyer process. You can download a full overview of the 90 steps The Dunnican Team handles from first showing through closing at thedunnicanteam.com/for-buyers/90-ways-free-download.
About Cindy Dunnican
Cindy Dunnican is the managing partner of The Dunnican Team at Coldwell Banker Apex, Realtors, serving the Northeast Dallas suburbs, Rockwall County, and the surrounding North Texas communities. Alongside her husband and business partner, Cory, she helps buyers and sellers navigate move-up purchases, downsizing, relocation, new construction, and luxury lake and golf course properties. Connect with The Dunnican Team at thedunnicanteam.com.
