Which parts of the home does a structural warranty cover?
Structural warranties are a proven way to protect your business, your reputation, and your buyers. But which parts of the home does a structural warranty from 2-10 Home Buyers Warranty (2-10 HBW) cover? Today, we’ll look at the parts of a home it covers, what happens if you don’t provide one, and whether you’re responsible for structural defects outside your control.
What does a structural warranty cover?
A structural warranty from 2-10 HBW covers structural defects to the designated load-bearing elements of the homes you build. Let’s define two important phrases: structural defects and designated load-bearing elements. These phrases have specific meanings that determine coverage.
First, for something to qualify as a structural defect, all of the following statements must apply:
- There must be actual physical damage to one or more of the designated load-bearing elements of the home.
- The actual physical damage must have been caused by the failure of a designated load-bearing element.
- The failure of the load-bearing function of the designated load-bearing element must render the home unsafe, unsanitary, or otherwise unlivable.
As you can see, structural defects hinge on the status of designated load-bearing elements. But what is a designated load-bearing element, exactly? Here are the nine designated load-bearing elements a structural warranty from 2-10 HBW covers:
- Roof framing systems
- Load-bearing walls and partitions
- Footings and foundation systems
- Floor framing systems
- Masonry arches
What if I don’t provide a structural warranty?
Every builder has a legal obligation to follow standards related to the workmanship and habitability of the homes they build. So, even if you choose not to provide one, you are still responsible for assuring that you follow these standards. This is called an implied warranty. However, an implied warranty often falls under court interpretations, which takes most of the control out of your hands.
If you don’t provide one at all or choose to provide a self-written warranty, and a home you build suffers a structural defect, you are on the hook. The average structural defect costs between $42,000 and $113,000 to address. These defects can also damage your reputation if you don’t have a proven solution.
A structural warranty from 2-10 HBW can take both financial liabilities and threats to your reputation off your shoulders. It explicitly outlines your responsibilities as a builder in writing, which can minimize the likelihood of expensive, drawn-out litigation. Instead of just hoping something doesn’t go wrong, a structural warranty from 2-10 HBW gives you and your buyers peace of mind that the industry leader has a solution for structural defects.
Am I responsible for structural defects that aren’t directly my fault?
Yes, in many cases, you’re responsible for structural defects that aren’t directly your fault. For example, 80% of structural defects are caused by soil movement. While soil movement that causes a structural defect may not be directly your fault, you are still responsible for addressing that defect. On the other hand, if a car crashed through a load-bearing wall for example, you would not be responsible for any structural defects arising from that incident.
A structural warranty from 2-10 HBW can help you provide solutions to defects that may not be directly your fault. Whether from soil movement, subpar subcontractor work, or another qualified reason, a structural warranty can protect you against things outside of your control.
A structural warranty from 2-10 HBW can protect your business, your buyers, and your reputation. As the leader in structural warranty coverage, 2-10 HBW covers 1 in 7 new homes in the United States. All builders have an obligation to guarantee the workmanship and habitability of their homes. A structural warranty from 2-10 HBW provides protection and expectations in writing, letting you worry less about structural defects and more about building quality homes.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.