Why have an Insurance-Backed Structural Warranty

A structural warranty, from an esblog 2tablished warranty provider, gives builder’s and homeowner’s confidence that if qualified major structural damages develop in a home, those repairs will be the obligation of the warranty insurer rather than the responsibility of the builder and homeowners. Structural damages occur more often than many builders and homeowners realize. In parts of the U.S. that have expansive soils, 25% of all homes may experience some form of structural distress over their lifetime; up to 5% may sustain major structural damages. A builder may purchase the warranty from a third-party company; however, coverage and insurance backing varies greatly among the providers. A structural defect should be defined in accordance with HUD[i] regulations that are designed to cover homes for failure of designated load-bearing elements that meet certain criteria. Structural warranties protect both builders and homeowners from all-too-common structural defects that arise after construction. These structural issues may not become apparent until many years after the sale of the home. Even builders with an excellent history of no structural-defect claims can find themselves dealing with a structural warranty issue years after closing. The majority of structural claims are reported four to seven years after completion of the home2.

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.


[i] HUD – Housing and Urban Development