We came across a great article from KeepCurrentMatters.com that talks about how ignoring insurance when purchasing a new home can be costly. We totally agree and feel the same way when it comes to purchasing a new construction home and ensuring that it comes with structural warranty coverage.
“It’s easy to overlook insurance [and structural warranty coverage], especially since you may be more worried about the number of bedrooms, the school district, or the size of the backyard. But before you can close on the purchase, your lender will require you to line up homeowners insurance. You may be hit with some sticker shock if the home you are about to buy ends up being a high risk- and therefore high cost- home to insure.”
Here’s how a structural warranty could affect your new construction home purchase:
- Most structural warranty programs require builders to go through a stringent process to ensure they comply with national building standards. This means, you’ll be working with a builder you can trust.
- Your home will be protected for a full 10 years. Structural warranties not only provide a written agreement that ensures your builder is held responsible for any workmanship or system issues, but that you’re protected from natural causes out of the builder’s control, such as soil movement*. Knowing that the average structural claim costs $42,000, having this coverage can be a huge money saver.
*Only certain programs provide protection for soil movement. See 2-10 Home Buyers Warranty for more.
- It increases the resale value of your home should you decide to sell.
Ask your builder if they provide structural warranty coverage, if not, refer them to a trusted source: 2-10 Home Buyers Warranty®.