What Does a 10-Year Builder’s Warranty Cover?

When you build a new home, your reputation—and your bottom line—depends on quality. But even the best construction can be affected by factors outside your control. That’s where a 10-year builder’s warranty comes in.

A 10-year structural warranty helps protect both the builder and homeowner from unexpected, costly structural defects. In this article, we’ll explain what a 10-year building warranty covers, why it matters, and how a warranty for builders from 2-10 Builders Warranty (2-10) helps builders reduce risk and boost buyer confidence.

What Is a 10-Year Builders Warranty?

A 10-year builder’s warranty—also known as a new build 10-year warranty—is insurance that protects a newly constructed home against qualified structural defects in its load-bearing elements.

For builders, it transfers much of the financial liability for structural defects off their books. For homeowners, it provides peace of mind that their biggest investment is protected against qualified structural defects for a full decade.

What Does a 10-Year Structural Warranty Cover?

A 10-year structural warranty from 2-10 covers defects to designated load-bearing elements that make the home unsafe, unsanitary, or unlivable.

Covered elements include:

• Roof-framing systems
• Load-bearing walls and partitions
• Beams and columns
• Footings and foundation systems
• Floor-framing systems and girders
• Lintels and masonry arches

To qualify for a warranty payout, three conditions must be met:

1. There is physical damage to at least one designated load-bearing element.
2. The failure of that element is the direct cause of the damage.
3. The failure renders the home unsafe, unsanitary, or unlivable.

Is a 10-Year New Home Warranty Required by Law?

In most states, builders are legally required to address structural issues for a set period of time, often up to 10 years. A 10-year new home warranty fulfills this obligation while transferring risk to a third party.

Here’s how that responsibility generally breaks down over multiple years:

• 1 year: Workmanship coverage (fit, finish, materials)
• 2 years: Distribution systems (electrical, plumbing, HVAC)
• 10 years: Structural defect coverage

These requirements ensure the builder complies with statutory requirements and provides a transparent protection plan for the buyer.

Benefits for Builders and Homeowners

Ten-year builder warranties provide benefits for both builders and homeowners. Here are a few advantages for each party:

Major Benefits For Builders

Three of the biggest reasons builders should consider leveraging a 10-year builder’s warranty:

1. Protects against costly claims (the average structural defect claim is around $70,000).
2. Reduces legal disputes with homeowners by providing a clear resolution process
3. Enhances reputation and marketability. Buyers prefer builders who offer a new-build 10-year warranty.

Major Benefits For Homeowners

Three of the biggest reasons homeowners should seek out a 10-year builder’s warranty:

1. Confidence that the home’s structure is protected for a decade
2. Assurance that structural issues will be addressed without huge out-of-pocket costs
3. Transferable coverage if they sell the home within the 10-year period, which adds value to the resale

Real-World Example: How a Builder Was Protected

Here’s a real-world case study from our guide on structural warranties: A Maryland home builder enrolled 300 new homes over the course of 16 years.

While nearly all of the homes were problem-free, one home presented unique issues in only four years. Large cracks appeared in the brick veneer, interior drywall, and garage doorway.

Although the builder had compacted the soil adequately before construction, another problem was discovered through a geotechnical investigation: The home had been built over a natural drainage ravine.

With our warranty coverage, a repair plan was developed and implemented, saving the builder approximately $100,000.

Final Thoughts: Why Every New Build Should Have a 10-Year Warranty

For builders, a 10-year builders’ warranty helps reduce risks, meet legal obligations, and boost buyer confidence. For homeowners, a 10-year structural warranty offers peace of mind and a solution for unexpected, covered structural issues.

When you become a 2-10 Builder Member, you can protect your profits, promote your quality, and plan for a successful future by controlling what’s behind you. When you build it, we back you up.

Contact us to learn more.