Protecting Your Bottom Line and Addressing Rising Costs

A row of houses on a green arrow tilting up to show a rising market.

If you could boil down the general mood about the current economy in one word, the best word would be ambivalent. Some economic experts say we’re in a recession. Others say we’ll make a “soft landing” out of inflation and avoid a recession altogether. Some housing experts say we’re out of the seller’s market. Others say it’s still harder than ever to buy.

Between rising overall costs, softening bottom lines, higher-than-ever expectations, and the emergence of new markets, you might be looking for something to ground you. 2-10 Home Buyers Warranty (2-10 HBW) can help you there.

The rising costs of warranty claims

A hand holding hundred-dollar bills, and the bills are blowing away to indicate higher costs.

As a home builder, you know that it’s your responsibility to provide a warranty on every home you build, whether written or implied.

According to a deep report by Warranty Week, the overall amount of both warranty claims paid and warranty accruals for home builders rose throughout 2022.

Why does this matter?

In short, what this means is that generally, warranty claims are more expensive. In fact, home builders paid a total of over $200 million in warranty claims in Q2 of 2022 (the most recent data available) alone.

Even more surprising, the cumulative balance of warranty reserves is above $1.7 billion, continuing its consistent upward trajectory since 2016.

All of this means that could face deeper cuts into your bottom line to hedge against warranty claims.

Every dollar you have to put away to address warranty claims is a dollar out of your bottom line. But without a risk-mitigation strategy, the costs of claims could be astronomical. After all, structural warranty claims can cost between $75,000 and $125,000 per claim.

How to address these issues

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A 2-10 HBW Structural Warranty helps protect your bottom line by transferring the financial liabilities of covered structural defects off your books.

First, each warranty call you receive erodes your bottom line. Whether it’s a major structural defect or simply a meticulous homeowner, every call costs you money. A 2-10 HBW Structural Warranty can help you save money by providing clear, written performance standards. When you have clear, written performance standards, it can help you avoid going beyond what’s reasonable to address unexpected issues.

Additionally, with services like Front Line Warranty Service, 2-10 HBW can act as your first point of contact, which can reduce those calls, enable 2-10 to process and manage service requests, so that you can focus on what you do best—building quality homes.

Second, as the industry leader in structural warranty administration, 2-10 HBW has unmatched economies of scale.

Currently, 1 in 5 homes in the United States is covered by a 2-10 HBW Structural Warranty, including many small and mid-sized builders. That means that 2-10 HBW knows how to handle thousands of disputes for builders nationwide.

In fact, our dispute avoidance and mitigation team has a success rate of over 99% in helping homeowners and builders resolve disputes before arbitration.* This means you can spend less time and money on drawn-out arguments and more time building homes.

Benefits that supplement protecting your bottom line

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On top of protecting your bottom line with industry-leading administration, 2-10 HBW goes farther by promoting your quality.

A powerful way to promote your quality is through third-party validation. When an industry leader can vouch for you, it adds even more credence to your commitment to quality. And with buyer expectations higher than ever, third-party validation is of utmost importance.

Better still, coverage starts on Day 1. That means more time to plan for a successful future by controlling what’s behind you.


A White man with brown beard and white hardhat and gray zip-up jacket standing in front of the construction framing of a house

Buyers have begun to prefer new homes when possible. However, this also means that homeowners have high expectations in the new homes they purchase.

With a 2-10 HBW Structural Warranty, you can address the rising number of warranty claims and associated costs, while presenting the third-party validation your clients expect.

When you can hedge against the unexpected and give your clients what they want, it could lead to even more opportunities. 2-10 HBW helps you take advantage of those opportunities with industry-leading structural warranty administration.

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

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