Warranty Wizard: National, New Jersey, and Texas Home Warranties

– wisdom header e1524682220716 – Warranty Wizard: National, New Jersey, and Texas Home Warranties

A 2-10 HBW New Home Warranty is a 2-10 HBW New Home Warranty is a 2-10 New Home Warranty, right? Well…kind of. Up to this point our discussions about the Warranty Contract have been limited to the “full” National 2-10 HBW New Home product because it makes up the majority of the active 2-10 HBW enrollments. By full, I mean the builder’s 1-2-10 Warranty. But there are other full 2-10 HBW products in different parts of the country such as Texas and New Jersey, and as the Warranty Administrator, we must have the ability to recognize the provisions of the National Warranty may not always apply.


Why are there different 2-10 HBW New Home Warranties?

Texas Home Warranty Example

The Texas Home Warranty is based on a warranty created by the now defunct Texas Residential Construction Commission (TRCC), created by the Texas legislature in 2003. The contents of the TRCC Warranty were influenced by input obtained from a wide range of interested parties, including builders, consumers, engineers, and educators. The TRCC was disbanded in 2009 after the Texas Association of Builders (TAB) convinced the Texas government they could regulate themselves, and did not require additional oversight. Part of that lobbying effort was the adoption of the TRCC warranty (with minor modifications). 2-10 HBW has decided to take coverage cues from the TRCC warranty because the Performance Standards contained within are endorsed by TAB, and 2-10 HBW understands the benefits of presenting the builders with a set of standards they are already familiar with.

Generally speaking, the New Jersey and Texas home warranties are very similar to the national one, but the fact that differences do exist underlines the importance of always referring to the applicable warranty book when questions arise. In New Jersey, where our home warranty is subject to regulation, if we ever were to demonstrate a pattern of providing incorrect information, it could lead to sanctions and hinder 2-10 HBW’s ability to issue warranties. That is a worst-case example, but accuracy of information is a primary goal, and always referring to the warranty booklet is a way to ensure it is met.

New Jersey Home Warranty Example 

The state of New Jersey requires all newly constructed homes be enrolled in a home warranty program. Because of this, the New Jersey Department of Community Affairs (DCA) actually has their own warranty program containing its own provisions and Construction Performance Standards. In order for a private warranty company like 2-10 HBW to issue warranties in the state of New Jersey, we must comply with many of their warranty requirements. The DCA does not require we adopt their warranty verbatim, and there are procedural elements of the state warranty 2-10 HBW does not have to follow, but many of the most important elements such as the Construction Performance Standards, exclusions, and filing deadlines do have to mirror the state program, and 2-10 HBW must submit the New Jersey Home Warranty to the DCA every two years for review and approval.