Home builders warranties, also sometimes referred to as structural warranties, help residential builders across Tennessee protect their projects from the impact of devastating structural problems.
Even with robust additions to municipal building codes throughout Tennessee that are designed to protect homes, foundations can still fail. If you’re interested in protecting the homes you build, your business and the homeowners who trust your construction, here’s how it all works and why securing a third party insurance-backed warranty makes sense.
What do structural warranties cover?
A comprehensive structural warranty includes three different types of coverage:
- 1 year for workmanship defects
- 2 years for systems defects
- 10 years for structural defects
Specific types of structural defects are covered — those that lead to physical damage to load-bearing elements of a home, which in turn result in failure of the home’s load-bearing function to the extent that a home becomes unsafe, unsanitary, or otherwise unlivable. When you read the coverage documents you’ll notice that the language is unambiguous, which ensures that the builder and homeowner understand their exact obligations and responsibilities.
Typical load bearing elements that are covered under a warranty include:
- Footings and foundation systems
- Masonry arches
- Load-bearing walls and partitions
- Roof framing systems
How a structural warranty helps Tennessee builders
Did you know that 25% of all newly constructed homes will develop signs of structural defects in their lifetime? Even if you follow every single construction best practice, there’s a chance a foundation that you build will encounter structural problems. If you have an insurance-backed structural warranty, however, you can protect your bank account and your builds.
Structural warranties are written agreements between the home builder and the homeowner. They clearly define your work-product obligations in relation to construction quality and they outline any continuing obligations. The coverage kicks in if the unexpected happens, paying for foundation repairs and associated costs. That’s not all, though — there are a number of additional benefits:
- Handling complaints will be easier. Homeowner complaints can be time consuming and frustrating. But, with a home builders warranty, the warranty company will field homeowner phone calls, questions and complaints for the 10 year duration of the warranty.
- Homeowners will feel more confident purchasing a home from you. 94% percent of home buyers surveyed think a structural warranty is valuable when purchasing a new home.
- Your business’s finances will be protected. Structural warranties (and other warranty products for home builders) protect builders from the financial risk of making covered repairs.
- Homebuyer education is built in. Every warranty company should provide homeowners with a maintenance manual that clearly states the homeowner’s maintenance responsibilities.
- You’ll stay out of court. Structural warranties include binding arbitration that helps resolve issues quickly and fairly, and the warranty company will take a neutral stance during arbitration.
- Certain home warranties are HUD-approved. 2-10 HBW warranties are HUD-approved and fully transferable. Not all warranty companies have this approval, so be sure to double check when vetting warranty providers.
And, because structural warranties emphasize quality construction, you’ll be one step closer to meeting all of Tennessee’s foundation requirements, no matter where you’re building.
Structural Warranties can protect builders and their buyers from devastating structural problems. But, maybe even more importantly, they give homeowners that all-too-important peace of mind that when something goes wrong, they’re covered. Become a member today!