A new home warranty is often described in broad terms, but its coverage is defined by specific timelines and legal standards. Understanding those distinctions helps homeowners set realistic expectations before closing.
At Homes By Tradition, we build Minnesota homes under the state’s statutory warranty framework. Knowing what is protected, what is excluded, and how claims are handled creates clarity long before a warranty is ever needed.
Minnesota’s 1-2-10 New Home Warranty Explained
Minnesota law establishes statutory warranty protections for newly constructed dwellings. These protections are defined under Minnesota Statutes Chapter 327A, which outlines builder obligations, the financial realities of building on your own lot, and warranty durations.
Under Minnesota Statutes § 327A.02, builders must provide statutory warranties covering workmanship, systems, and major construction defects.
1-Year Coverage: Workmanship and Materials
The first year typically covers defects caused by faulty workmanship or improper installation. This may include issues such as improperly installed trim, flooring, or other finish-related concerns.
This coverage does not apply to cosmetic wear or homeowner-caused damage; it focuses on correcting construction-related deficiencies rather than normal aging. The one-year period serves as quality control for visible finishes and assembly, ensuring installation meets professional standards established at completion.
2-Year Coverage: Systems and Infrastructure
The two-year portion applies to mechanical systems within the home. This generally includes plumbing, electrical, and heating or cooling systems installed during construction.
Coverage typically addresses defects in installation, not routine maintenance needs; homeowners remain responsible for ongoing system care and manufacturer-recommended servicing. This protection supports essential functionality during early occupancy without replacing manufacturer warranties or routine maintenance responsibilities.
10-Year Structural Warranty
The ten-year portion addresses “major construction defects” as defined by statute. These relate to structural elements that materially affect the load-bearing capacity of the dwelling.
Structural components typically include foundations, beams, load-bearing walls, and framing systems. Cosmetic cracking or minor settlement does not automatically qualify as structural failure. The ten-year warranty protects against significant deficiencies, not minor aesthetic imperfections, with documentation established during the design-build process and inspection standards guiding claim evaluation.
What Is Usually Not Covered
Understanding exclusions prevents confusion. Many disputes arise not from coverage gaps, but from mismatched expectations. Statutory warranties define specific obligations, and not all homeowner concerns fall within those definitions.
Normal Wear and Maintenance Items
Certain items are expected to change over time. These conditions are typically considered routine maintenance rather than construction defects.
Common examples include:
- Minor drywall shrinkage cracks
- Paint touch-ups
- Caulking separation
- Seasonal wood movement
These adjustments reflect natural material behavior rather than structural or workmanship failure. Material movement is a normal part of home performance, and warranty protections focus on defects, not routine settling or aging
Owner Negligence and Modifications
Homeowner actions can affect warranty eligibility. Improper grading adjustments or unapproved structural changes may limit coverage.
Examples often excluded include:
- Altered drainage patterns
- Landscaping that overrides the original site evaluation steps and redirects water toward the foundation
- Structural modifications after closing
- Lack of required maintenance
Warranty protection assumes reasonable upkeep, and documentation of homeowner care supports future claims if needed. Maintaining original site grading and structural integrity is part of responsible ownership; modifications can shift liability away from the original construction.
Optional Coverage and Manufacturer Warranties
Statutory coverage works alongside manufacturer warranties. Appliances, roofing materials, and windows often include separate product-based protections. Understanding how these layers interact helps clarify responsibilities.
Systems Extensions and Product Warranties
Many components carry manufacturer-backed warranties independent of statutory requirements.
Common examples include:
- Appliance warranties
- Roofing manufacturer coverage
- Window glass and hardware warranties
- HVAC equipment warranties
These warranties vary in length and scope, but homeowners should retain documentation for all installed systems. Product warranties supplement statutory coverage while operating independently, and keeping records organized simplifies future service coordination when hiring a custom home builder to complete your project.
Outdoor Living and Site-Related Allowances
Exterior elements are often misunderstood within warranty conversations. Landscaping, irrigation, and hardscape features may not fall under structural protections.
Items commonly outside the statutory scope include:
- Lawn and plant establishment
- Surface cracking in exterior concrete
- Irrigation system adjustments
- Seasonal soil movement affecting landscaping
Exterior features require ongoing maintenance and environmental management, with performance influenced by climate and site conditions. Outdoor components behave differently from structural systems, and clear expectations prevent confusion about coverage boundaries.
Other Important Details to Know
A few additional aspects of Minnesota’s warranty framework affect how protections work in practice.
- Reporting timelines matter. Under Minnesota law, builders are not liable for damage that homeowners fail to report within 6 months of discovering it. Documenting issues quickly is essential to preserving warranty rights.
- Warranties transfer with the home. Minnesota’s statutory warranties survive the transfer of title, meaning subsequent purchasers of a property that was built within the past 10 years and tracked from the initial custom home build timeline may still benefit from remaining structural coverage, a meaningful protection in resale situations.
- Disputes follow a defined process. Minnesota Statutes section 327A.051 establishes a home warranty dispute resolution process. Before filing a lawsuit, homeowners typically must give the builder written notice and an opportunity to inspect and offer repairs—a “right to repair” framework that resolves many disputes without litigation.
What Buyers Should Ask Before Signing
A warranty document should be reviewed carefully before closing. Clarifying terms early reduces future uncertainty.
Important questions include:
- Is coverage strictly statutory or supplemented by third-party programs?
- What documentation is required to submit a claim?
- What are the timelines for reporting issues?
- How are disputes resolved under Minnesota law?
These conversations should occur before final contract execution. Transparency protects both the homeowner and the builder; informed buyers experience fewer misunderstandings; and through our Build On Your Lot service, we ensure that the early warranty scope and customer expectations match all legal protections.
Understand Coverage Before You Need It
A new home warranty provides defined protections under Minnesota law, but it does not serve as blanket coverage for every concern. Understanding the 1-2-10 framework clarifies where responsibility begins and ends.
Homes By Tradition builds new homes across the south Twin Cities metro, including Lakeville, Prior Lake, Edina, Minnetonka, Rosemount, Chaska, Inver Grove Heights, and Mendota Heights, with transparency around statutory protections and documentation standards. If you have questions about the warranty structure before finalizing your contract, contact Homes By Tradition today and schedule a consultation to review coverage details with clarity.
