Luxury clients are demanding, well heeled, and well represented. To mitigate risks and fulfill expectations, luxury home builders trust 2-10 Home Buyers Warranty (2-10 HBW) for industry-leading warranty coverage. Here’s why.
Luxury buyers demand top-notch coverage
Luxury homes require much, much more warranty work than production homes. Many luxury buyers and real estate professionals demand the gold standard in luxury coverage because they recognize the value of exceptional coverage. After all, they’re paying millions of dollars, so anything less than perfect can easily lead to a dispute.
2-10 HBW is the gold standard in warranty administration for luxury homes. Our coverage can address these disputes successfully and cost-effectively. Additionally, in a world of skyrocketing insurance costs, 2-10 HBW’s insurance-backed warranty has helped luxury builders keep costs low.
Most warranty companies don’t have solutions for luxury homes
Very few warranty companies specialize in luxury homes. In fact, many in the market cap their liability at $2 million, which is often the low-end starting point for luxury.
2-10 HBW can insure structures for more, giving builders more peace of mind. This provides real, usable insurance when something goes wrong instead of a relative pittance.
You’re immensely committed to building high-quality luxury homes. This commitment makes complaints from home buyers unexpected, frustrating, and potentially devastating to your business. But luxury home buyers demand perfection. Anything less could be grounds for expensive, drawn-out lawsuits.
Even worse, luxury buyers often have access to top legal firms, along with the means to carry out a long court case (sometimes out of spite).
As the leader in warranty administration, 2-10 HBW provides appropriate and effective solutions to luxury home disputes.
2-10 HBW can customize coverage
Like the luxury homes you build, there is no such thing as a one-size-fits-all warranty. (Or we don’t believe in it, at least.)
That’s why 2-10 HBW lets luxury builders customize their coverage based on their situation.
For example, if you live in a state with a 10-year statute of repose, a 2-10 HBW structural warranty is just the start. You can add additional perks and programs to fulfill the needs you and your clients have.
How about if you’re in a state with a statute of repose that’s shorter than 10 years? 2-10 HBW has a solution. We can help luxury builders match the length of the warranty to the statute of repose.
This is important because sometimes, lawyers take advantage of structural warranties whose coverage extends past the statute of repose. By adjusting your term, we help protect you against lawyers who try to make a case about extending construction defect coverage, which can often lead to incredibly expensive lawsuits (typically from cosmetic defects and legal fees).
And what if you don’t think you need structural coverage (more on this misperception in a minute)? 2-10 HBW offers 1-year workmanship and 1-year distribution-system performance standards without insurance. These standards are excellent for builders who go above and beyond performance standards because it limits their contractual obligations if something does go wrong.
Coverage myths and misperceptions
Some builders fall prey to two myths and misperceptions about structural coverage. Let’s debunk them once and for all.
Myth 1: I don’t need structural coverage because luxury homes are over-engineered
Fact: It’s true that many luxury homes are over-engineered, which is why we offer performance standards without insurance to mitigate the effects of when a buyer sues. However, this can be a risky mindset, based on two facts:
- Up to 80% of structural defects are caused by soil movement, which is outside your control
- Structural failures in luxury homes are unbelievably expensive, due to demanding buyers and the likelihood that you’ll need to cover the costs of expensive cosmetic damage
With a 2-10 HBW structural warranty, you can reduce the risks these expensive, often uncontrollable problems create.
Myth 2: My buyer won’t ever sue me because I know them
Fact: For more than 40 years, 2-10 HBW has been an industry leader in the structural warranty space. In those 40+ years, we’ve heard this myth more times than we can count. And time and time again, we’ve watched builders suffer unnecessarily because a buyer they thought they knew sued them.
Knowing your buyers—even if you know them well—often isn’t good enough. Frankly, it’s wishful thinking. With coverage from 2-10 HBW, you get a cost-effective solution to unexpected lawsuits from a team that’s led the industry for more than 40 years.
Conclusion: Trust 2-10 HBW for luxury coverage
Top-notch coverage you can’t find anywhere else and the ability to customize, all under one roof. It’s little wonder why luxury builders trust 2-10 HBW to protect their profits, promote their quality, and plan for what’s ahead by controlling what’s behind them.
The best time to provide industry-leading coverage was yesterday. The next-best time is now.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.