A good warranty should include the following information:

• The name of the holder and a statement as to whether the warranty can be transferred.
  
  
• Time the warranty is applicable.
  
  
• A detailed and precise explanation of what is covered and what is not.
  
  
• A description on what happens when an issue arises. How and when will it be handled? How does one file a claim? Does a deductible apply?
  
  
• Any limitations on damages.

There are also a lot of other things you can do as a buyer to ensure you are not purchasing a sub standard home:

• Check out the builder’s reputation. You can do this at the Better Business Bureau (BBB).
  
  
• If there are homes occupied by the same builder, talk with the homeowners