What Does a 10-Year Builders Warranty Cover?

What does a 10-year builders warranty cover?

A 10-year builders warranty covers structural defects to a home’s designated load-bearing elements.

Builders always stand by the quality of the homes they build. But 80% of structural defects occur because of things outside of the builder’s control, such as soil movement. Today, we’ll look at how builders can mitigate this risk by purchasing an insurance-backed builders warranty. We’ll also look at what a 2-10 Home Buyers Warranty (2-10 HBW) builders warranty covers.

What is a builders warranty and what does it cover?

Generally speaking, a builders warranty is insurance that a builder buys or provides to protect newly constructed homes against qualified structural defects. A builders warranty from 2-10 HBW provides 10 years of coverage against structural defects to the designated load-bearing elements of new construction homes. Designated load-bearing elements include the following:

  1. Roof-framing systems
  2. Load-bearing walls and partitions
  3. Beams
  4. Columns
  5. Footings and foundation systems
  6. Floor-framing systems
  7. Girders
  8. Lintels
  9. Masonry arches

To qualify as a structural defect, all of the following criteria must be present:

  1. There must be actual physical damage to at least one of the load-bearing elements listed above. Assumptions or projections of damage do not qualify.
  2. The failure of a designated load-bearing element must be the cause of the actual physical damage.
  3. The failure of a designated load-bearing element must render the home unsafe, unsanitary or unlivable.

Are they required by law?

Yes, all states have laws that require home builders to address any structural issues that might arise for a set time frame. These laws and time frames vary by state. Typically, builders are responsible for covering distribution systems (e.g., waste plumbing and electrical wiring) for 2 years and the home’s structure for up to 10 years.

What does a 2-10 HBW builders warranty cover?

In addition to the 10-year structural defect coverage mentioned above, a 2-10 HBW builders warranty includes 1 year of coverage for workmanship (i.e., fit, finish and materials) and 2 years of coverage for distribution systems. Each of these coverages meet minimum state statutory or implied warranty laws.

You Build it, We'll back you up.

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

What are the benefits of a 2-10 HBW builders warranty

The average structural claim costs between $42,000 and $113,000 per claim. Builders who have a 2-10 HBW builders warranty pass those liabilities onto 2-10 HBW, relieving themselves of these high costs.

Additionally, 2-10 HBW is the only builders warranty provider that explicitly covers structural damage caused by soil movement. Soil movement, which you simply cannot control for or predict, is responsible for 80% of structural defects.

Finally, 2-10 HBW’s builders warranties provide third-party validation of quality and fulfill the will of home buyers. Four out of 5 Buyers value third-party, insurance-backed builders warranties. Plus, our builders warranties are fully transferable between owners throughout the coverage period.

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

You Build it, We'll back you up.

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