Even the most carefully built homes aren’t immune to unexpected issues. And depending on where you build, the statute of repose could leave you legally responsible for fixing structural problems for years after closing.
That’s where a new-construction home warranty administered by 2-10 Home Buyers Warranty comes in. It helps protect your business and your buyers, providing clear expectations and coverage when the unexpected happens.
Let’s explore what this type of warranty covers and how it benefits both you and your homeowners.
What Does a New-Construction Home Warranty Cover?
A new-construction home warranty—also called a builder’s warranty or structural warranty—helps define what’s covered and who’s responsible when covered issues arise. It generally includes coverage across three major areas:
1. Workmanship Coverage
Establishes performance standards for the home's fit, finish, and materials, like:
- Trim and drywall
- Flooring and tile
- Paint finishes and siding
If workmanship doesn’t meet accepted standards, this part of the warranty ensures the homeowner has a path to resolution.
2. Distribution Systems Coverage
This applies to the core systems behind the walls:
- Electrical wiring
- Plumbing
- HVAC systems
If any of these systems fail due to installation issues and you’re unable to address the problem, 2-10 steps in to help.
3. Structural Defects Coverage
This is the foundation (literally) of 2-10 builder warranties. It offers up to 10 years of protection for designated load-bearing elements, including:
- Foundation systems and footings
- Load-bearing walls and partitions
- Roof and floor framing
- Beams, columns, girders, and lintels
To qualify for structural defect coverage, the damage must be:
- Physical and to a load-bearing element
- Caused by failure of that element
- Significant enough to make the home unsafe, unsanitary, or otherwise unlivable
For example, let’s suppose a newly built home in Arizona began experiencing foundation movement within the first year due to unstable soil. Large cracks formed in the walls, and doors wouldn’t close. Because the builder had enrolled the home in a 2-10 HBW builder’s warranty, they avoided a $90,000 repair bill, and the homeowner received timely assistance.
What Type of Warranty Do You Need on a Home?
It’s an extremely good idea to have a structural warranty for every home you build. According to industry estimates, structural defect repairs can cost tens of thousands of dollars, often averaging around $50,000 or more per claim depending on severity and location. And because most structural defects result from soil movement, it’s possible that one claim can turn into several.
But with a 2-10 builder’s warranty, you can transfer those potential financial burdens away from your books. Instead of having to scramble to solve qualified defects, you make a call to 2-10 to help address the structural issue head on. This means a safer, happier experience for your clients, and more time for you to do what you do best— build quality homes.
What’s the Difference Between Home Insurance and a New-Construction Home Warranty?
Home insurance covers any accidental damage to your buyer’s house and movable possessions. A new-construction home warranty provides coverage against structural defects for up to 10 years.
When and How Can Builders Purchase This Warranty?
Only builders can purchase a new-construction home warranty, and it must be done at the time of sale. Homeowners cannot purchase this type of warranty themselves, though they can later opt for a systems and appliances warranty, which covers different items.
To enroll homes in the 2-10 warranty program you’ll need to become a 2-10 Builder Member. 2-10 Builder Members can enroll their homes in the 2-10 warranty program, allowing you to provide your homeowners with significant added value.
Protection That Builds Confidence
Choosing to include a new-construction home warranty on every home you build isn’t just good business: It's smart risk management. With 2-10 HBW, you’re not only shielding your company from unexpected expenses but also adding tangible value for your buyers.
Whether you're building custom homes or dozens of units a year, a structural warranty shows that you stand behind your work. And with 2-10, you’re aligning your business with powerful protection.
