When making a big purchase, whether it’s a new appliance or a new roof, one of the first things you’ll want to check is the warranty.

After all, you want to be sure that what you're investing in will work as intended and last as long as possible. Home improvement projects are no different.

To ensure your investment is protected, it's essential to have both a Labor Warranty from the company doing the work and a Manufacturer Warranty for the products being installed.

Knowing the difference is vital if you’re going to get your money’s worth.

What is a Labor Warranty?

A labor warranty protects you from costs related to installation errors, ensuring the contractor addresses any workmanship issues within the warranty period. It demonstrates the contractor’s confidence in their work, holds them accountable, and provides peace of mind that your project is completed to high standards. Additionally, it can save you money on repairs, streamline the process if issues arise, and even enhance your home’s value by offering reassurance of quality work.

These warranties cover the installation and workmanship of the job, rather than the products that are used. In other words, the labor it took to build the deck, not the lumber used.

For example, a roofing contractor’s labor warranty might cover only the installation of the shingles and flashing for a period of one year. If a leak occurs due to improper installation within that time, the contractor would fix the issue at no cost for labor. However, the warranty might explicitly exclude repairs caused by extreme weather events, such as hail or hurricanes, as well as any replacement materials required to fix the problem. Understanding these limitations ensures you know what to expect if an issue arises.

How to Use a Labor Warranty as a Customer:

If you experience any issues covered by the labor warranty, start by reviewing the warranty agreement to understand what is included and the coverage period. Then, document the problem with clear photos and notes, detailing the nature of the issue. Reach out to the contractor or company who performed the work, providing them with the documentation and a description of the issue.

Most companies will arrange an inspection to assess the problem and confirm that it falls under the warranty terms. Once confirmed, the contractor will schedule the necessary repairs or adjustments at no cost to you. By keeping records of all project documents and warranty agreements, you can ensure a smooth process if you ever need to use your labor warranty.

The shortcomings of labor warranties:

A labor warranty only covers the work of the employees, rather than the product itself and typically have a limited scope. These are usually for a short period of time because if there is an issue with the installation, you will hopefully notice right away or up to a few short years.

Issues That Can Arise With A Labor Warranty:

·         Exclusions in the Fine Print: Labor warranties often have exclusions that limit coverage. For example, the warranty might not cover damage caused by weather, misuse, or poor maintenance. If these exclusions aren’t clearly understood, you could face unexpected repair costs.

·         Short Coverage Period: Labor warranties are typically for a limited time, such as one or two years. If issues arise after the warranty expires, you’ll be responsible for the full cost of repairs, even if the problem stems from the original workmanship.

·         Disputes Over Coverage: Contractors may dispute whether a problem is covered under the warranty. For instance, they might argue that the issue is due to product defects or external factors rather than their labor, leaving you stuck between the contractor and the manufacturer.

·         Contractor Unavailability: If the contractor goes out of business or is unresponsive, it can be difficult to use the warranty. This leaves you without recourse to have the issue fixed under the original agreement.

·         Labor Only, No Materials: Many labor warranties cover only the cost of labor, not materials. If a repair requires additional materials, you’ll need to pay for them out of pocket, which can be costly depending on the nature of the repair.

·         Inspection and Approval Delays: The contractor may require an inspection before approving repairs under the warranty. This can lead to delays in addressing urgent issues, especially if scheduling an inspection takes time.

·         Unclear Documentation: Without clear records of your warranty agreement and proof of the contractor’s work, you may struggle to validate your claim. Miscommunication or lack of documentation could result in denied coverage.

Labor warranties vary by each company, so read the fine print. Be sure to choose a contractor with a solid reputation and carefully review the warranty terms to understand what is covered and for how long.

What is a Manufacturer Warranty?

A manufacturer warranty is provided by the company who produces the product to ensure they will repair or replace the item if it fails due to defects or issues not related to misuse or improper installation. These warranties are generally longer-term than labor warranties (some may even be for the lifetime of the product). If the product fails or malfunctions due to a defect covered by the warranty, the manufacturer typically agrees to repair, replace, or refund it at no additional cost to the customer.

Shortcomings of manufacturer’s warranties:

But here’s the catch: for the manufacturer’s warranty to remain valid, the installation must be done correctly. This is especially important for complex installations like siding or roofing.  If the installation is subpar or incorrect, it can void the product’s warranty, leaving you with costly repairs or even a full replacement down the line.

Issues that can arise from a manufacturer’s warranty:

·         Exclusions in Coverage: Many manufacturer warranties exclude certain types of damage, such as wear and tear, weather-related issues, improper installation, or misuse. This can lead to denied claims for common problems.

·         Misleading Coverage Period: Some warranties can be prorated, where over time the benefits depreciate. So, you may accept a lifetime warranty without realizing you don’t have full protection.

·         Proof of Defect Required: You may need to prove that the issue is a manufacturing defect, which can involve inspections, testing, or detailed documentation. This process can be time-consuming and inconvenient.

·         No Labor Coverage: Manufacturer warranties generally cover only the product, not the labor required to fix or replace it. This means you could face additional costs for repairs or reinstallation.

·         Claim Denial Due to Improper Installation: If the product was not installed according to the manufacturer’s guidelines, the warranty might be voided, leaving you without coverage even if the defect is unrelated to the installation.

·         Manufacturer Unresponsiveness: In some cases, manufacturers may delay responses to claims, or their customer service might be difficult to work with, creating frustration and delays in resolving the issue.

·         Manufacturer Goes Out of Business: If the manufacturer ceases operations, their warranty becomes void, leaving you without any recourse for defective products.

·         Hidden Costs: While the product might be replaced under warranty, you could still incur costs for shipping, handling, or reinstallation that aren’t covered.

Understanding the terms and limitations of a manufacturer’s warranty before purchasing can help you anticipate potential challenges and avoid surprises if you need to file a claim.

Buying smart: Investing in your home

When it comes to siding and roofing specifically, it’s important to hire a crew who knows how to properly install your new products to make sure you receive your warranties.

If you’re concerned about the quality of your project – and who isn’t? -- check to make sure the materials and workmanship being used are up to your standards.

How do you know what contractors offer both warranties?

Some companies have preferred contractors who are held to certain standards and are trusted to provide quality work up to warranty standards.  James Hardie, for example, is a leading provider and inventors of fiber-cement siding, James Hardie Elite Preferred Contractors are recognized to have strict compliance with:

·         Installation best practices

·         A professional sales approach

·         State licensing

·         Liability insurance up to $1,000,000 per occurrence

·         Workman’s compensation insurance

·         A satisfactory background check with at least 6 past clients done through a 3rd party surveying service

​Owens Corning Platinum Preferred Contractors are considered top tier contractors, part of an exclusive network withing Owens Corning to meet strict standards for professionalism, reliability and craftsmanship. They are the only roofers who can offer the best Owens Corning roofing system warranty

Pacific Exteriors holds both James Hardie Elite Preferred and Owens Corning Platinum Preferred certifications, which means we meet high standards for siding and roofing installation.

These certifications also ensure that your warranty remains valid, giving you peace of mind that your investment is protected. Whether you work with us or another contractor, choosing one with the right credentials can make all the difference in the long run.