Section Image

New Jersey is ditching the paperwork and taking its home warranty requirements online

Creating the portal will reduce paperwork, increase processing time, officials said

A view of Trenton, New Jersey — where state officials are planning to launch a new website they say will help homebuyers and homebuilders. (CoStar)
A view of Trenton, New Jersey — where state officials are planning to launch a new website they say will help homebuyers and homebuilders. (CoStar)
161 Views

Homebuyers in New Jersey will soon have a new method for managing their state-run home warranty policies.

Garden State officials said this week they're launching a website early next year that will benefit residents who purchased a newly constructed home and have a policy offered by the state. Those particular homeowners will be able to use the website to submit claims online instead of by mail, officials said. The website will also allow homebuyers to search a database and see what homebuilders are officially registered to construct and sell new homes in the state.

Launching the website will be a "critical step forward to modernize government tools to serve New Jerseyans more efficiently," Gov. Phil Murphy said in a statement Wednesday.

To be sure, New Jerseyans are not required to carry a home warranty on a newly constructed property or existing home after buying it from a builder. However, some homeowners opt to do so because those policies typically cover the cost of repairing or replacing major home operating systems, such as plumbing or electrical systems, and sometimes major appliances like stoves and refrigerators.

Murphy and other state officials said the website will also benefit homebuilders.

Under New Jersey law, builders must purchase a warranty for newly built single-family homes, condominium units and townhouses they plan to sell. Builders can buy a warranty from the state itself or a private plan from a list of state-approved providers.

As of now, homebuilders who elect to get a warranty from a private provider must mail documents to state officials in Trenton to prove they're in compliance with the law. Those documents included the builder's proof of being registered with the state, proof of home warranty enrollment and proof that the company has been making warranty payments on the homes being built and sold.

However, the mailing process has become outdated, state officials said this week, noting that in some cases, mailing documents slows down the timeframe for homebuilders to obtain a certificate of occupancy — the final document a builder needs to sell a property to a homebuyer.

Builders will also be able to use the website to make warranty premium payments on a property, state officials said.

"The days of waiting on a paper-based process to get a new home warranty are ending," Dave Cole, the state's chief innovation officer, said in a statement. "Through a new online platform, the state will help alleviate a significant stress associated with buying a new home."

Writer
Khristopher J. Brooks

Khristopher J. Brooks is a staff writer for Homes.com, covering the U.S. and New York housing market from New York City. Brooks has been a reporter and writer for newsrooms across the nation, including stints in Nebraska, Florida, Virginia and Tennessee.

Read Full Bio