While most new build homes come with something called a 'builder warranty', this typically only covers issues caused by the builder. You can also purchase a 'home warranty' that covers existing homes and replacements and repairs on items like appliances or air conditioning systems, but for any other damage that may befall your home, you will need to explore home insurance options.

If you are buying a new home with a mortgage, although not always required by state or federal law, it's a good idea to have homeowners insurance in place before you sign any contracts. This is espcially recommended in states like California, where according to Bankrate.com "additional wildfire, earthquake, and flood insurance may need to be purchased depending on your home’s exact location."

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