A structural warranty provides a written agreement between the home builder and the homeowner and clearly defines the builder’s work-product obligations related to construction quality and continuing obligations. Under the agreement, the builder is the insured and the homeowner is the beneficiary. Warranty insurance is different from liability insurance. In a typical structural warranty agreement, the home builder warrants that a new home will be free from qualified structural defects for 10 years. Additional coverage is available for workmanship and systems. For homes that require a HUD -approved warranty, the builder may purchase a structural warranty from a HUD-approved Plan issuer. A Plan issuer may be a state, warranty company, risk-retention group, HUD-approved builder, an insurance company or any other HUD-approved entity with the required insurance backing.
Read The Definitive Guide to Structural Warranties from 2-10 Home Buyers Warranty®, offering you a deeper look at what a structural warranty is, the benefits of using them and so much more. Your questions will be answered when you download the guide today.
