Yes—a builder’s warranty from 2-10 Home Buyers Warranty (2-10) does cover foundation damage in newly built homes, typically for up to 10 years. This coverage is essential because one of the most common and costly concerns homeowners have is about their home's foundation. Cracks, settlement, or movement in the soil beneath a home can all trigger significant structural problems.
When you offer a builder’s warranty with foundation coverage, you're giving homeowners peace of mind—and positioning your business as a reliable, quality-focused builder.
What Kind of Warranties Cover Foundation Damage?
A builder’s warranty, also known as a structural warranty, is specifically designed to cover major structural components, including the home’s foundation. A 2-10 warranty covers foundation issues related to soil movement—such as heaving, settling, or subsidence—which are among the most common causes of structural claims.
Why It Matters
Soil movement is largely unpredictable and out of a builder’s control, yet it causes most of the foundation issues seen in new homes. Without a new home foundation warranty, builders are financially responsible for foundation-related repairs during the state’s Statute of Repose period. With the average structural claim costing $70,000, this is a risk worth transferring.
What's Included in a 2-10 HBW Builder’s Warranty?
A standard 1-2-10 warranty from 2-10 includes the following:
- 1-Year Workmanship Coverage: Establishes performance standards for the quality and finish of materials like trim, doors, drywall, and paint. It defines responsibilities clearly for both builders and homeowners.
- 2-Year Distribution Systems Coverage: Establishes performance standards for systems behind the walls—plumbing, electrical, and HVAC—by outlining performance standards and assigning responsibility.
- 10-Year Structural Coverage: This is the heavy hitter. It includes major load-bearing elements such as the foundation, floor systems, beams, columns, and masonry, with coverage extending for a full decade. It’s your safety net against soil movement, foundation cracking, and major structural shifting.
What Causes Foundation Damage in New Homes?
Understanding the root causes of foundation issues can help builders and homeowners manage expectations and risk. The most common triggers include:
- Soil movement (heaving, settling)
- Erosion or improper drainage
- Poorly compacted fill
- Substandard construction practices
A builder’s structural warranty helps protect against the causes you can’t control, like soil-related issues, while encouraging adherence to best practices during construction.
Case Study: When Foundation Problems Strike
Imagine this scenario: A homeowner notices a diagonal crack in the wall, sticking doors, and sloping floors—classic symptoms of a foundation issue. A site inspection confirms soil settlement has compromised the slab.
Without a warranty, the builder faces a repair bill worth tens of thousands of dollars, as well as damage to their reputation. With a 2-10 builders warranty, the homeowner files a claim, and 2-10 covers the cost of repairs. The builder protects their bottom line, and the homeowner regains confidence in their investment.
This is exactly what builders warranty foundation coverage is designed for.
How Does a Structural Warranty Help Home Builders?
A 2-10 builder’s warranty supports builders in three major ways:
- Protects your profit
Structural failures are expensive. A 2-10 builder's warranty helps reduce your financial exposure to covered problems. - Promotes your quality
A 2-10 builder's warranty shows your dedication by providing third-party validation of your work. - Builds buyer confidence
Over 90% of buyers prefer builders who offer warranties. It provides third-party validation that your builds meet high-quality standards. - Helps you plan for the future
Since structural issues often arise years after a home is sold, a warranty lets you look forward—not over your shoulder.
Do Home Warranties Cover Foundation Damage?
It depends on the type of warranty. Standard home warranties (the kind that cover appliances or HVAC systems) typically do not cover foundation damage. However, builder’s warranties or structural warranties—especially those from providers like 2-10—do cover foundation issues for up to 10 years, provided the damage meets the policy criteria.
So, if you're wondering, "Is the builder responsible for foundation problems?" the answer is yes—unless they've transferred that liability through a structural warranty.
Whether you're a builder aiming to reduce risk, or a home buyer seeking peace of mind, structural warranties like the 2-10 are a smart way to protect the foundation—literally—of your investment. From cracks to settlement, you can rest easy knowing that qualified foundation issues won’t bring your bottom line crashing down.
A new home foundation warranty isn’t just a product. It’s a promise of protection—for both builder and buyer.
