Do New Homes Come With a Builders Warranty?

Do New Homes Come With a Builders Warranty?

Buyers of newly built homes expect builders warranty coverage to protect their homes from certain unexpected failures. Here’s how you can provide builders warranty coverage (i.e., structural warranties) to protect your clients and yourself.

What warranty options do I have for newly built homes?

Builders have 2 options for warranties on new construction.

  1. Transfer the liability for unexpected failures
  2. Retain the liability for unexpected failures

As a builder, you are required by law to address any structural issues that arise in your builds. This includes structural issues caused by soil movement, which is both the cause of 80% of structural claims and entirely out of your control.

The average structural claim costs between $42,000 and $113,000. If you don’t transfer liability, you’re on the hook for all of this. That doesn’t even account for the time and resources you have to devote to addressing homeowner calls and complaints.

As such, many home builders choose third-party structural warranty companies to eliminate their financial exposure and protect their profits. The costs can be relatively low.

For instance, coverage through 2-10 Home Buyers Warranty (2-10 HBW) typically costs less than 0.5% of the total purchase price of the home and its land. That’s a really small investment for comprehensive structural coverage that transfers liability away from your company and takes the burden of fielding those homeowner calls off of you.

How long does it last?

The length of a builders warranty can vary. Some, such as the 2-10 HBW’s, can last up to 10 years for qualifying structural problems related to load-bearing components. They’re also fully transferable.

What does a builders warranty cover?

A builders warranty from 2-10 HBW addresses 3 aspects for new construction.


The workmanship warranty provides construction standards for defects in materials and workmanship for 1 year after the home is built. The workmanship warranty starts on the day of closing and addresses the fit, finish and materials used in constructing a new home.

Distribution systems

The distribution systems warranty provides construction standards for defects in the home’s “behind the wall” systems (e.g., electrical wiring, waste piping and ductwork). The distribution systems warranty applies to the first 2 years after the builder finishes the home and is effective on the day of closing.


The structural warranty covers damages to designated load-bearing elements of the home. It covers structural problems resulting from issues such as soil movement, subcontractor error or material failure. Coverage for qualified structural defects through 2-10 HBW starts the day of closing and lasts for 10 years.

What does a builders warranty not cover?

There are some common expenses that builders warranties for new homes do not cover.

  1. Issues with household systems (e.g., HVAC systems) and appliances (e.g., dishwashers), which fall under 2-10 HBW’s systems and appliances home warranty
  2. Items covered under a manufacturer’s warranty

How do I buy one from 2-10 HBW?

Only builders may buy a builders warranty. Homeowners cannot buy one directly, but they can make sure that their builders provide one.

To purchase a builders warranty from 2-10 HBW, builders must first complete a membership application with 2-10 HBW. Because these are technically insurance products, there is an underwriting component. Required information includes the following:

  • Number of years in business
  • Financial wellness
  • Number of homes built in the last 36 months
  • Average sales price of each home built
  • Estimated number of homes you plan to sell and enroll in the 2-10 HBW plan

2-10 HBW is the industry-leading provider of builders warranties. Our builders warranties cover 1 in 5 homes throughout the United States. Request a quote on a builders warranty from 2-10 HBW today.

Learn how you can protect your business and add valuable selling points to your new builds with 2-10 HBW structural warranties.

You Build it, We'll back you up.

Learn why 1 in 5 new homes nationwide are covered by a 2-10 HBW Structural Warranty.