Why a third-party structural warranty is a smart choice
You have a responsibility to guarantee the quality of your work against structural defects. You also want to do everything you can to bolster and protect your reputation and bottom line. A third-party structural warranty from 2-10 Home Buyers Warranty (2-10 HBW)—the industry leader in structural warranties—can help you do all of that more effectively than anyone else. Here’s how.
A third-party structural warranty can cover structural defects outside of your control
You work hard to minimize the likelihood of structural defects in your homes. But up to 80% of structural defects occur as a result of soil movement, which is something that is entirely outside of your control. And yet, even if that uncontrollable issue crops up, you’re still responsible for addressing it. Without a clear solution, your reputation is at risk.
A common mistake builders make is thinking “I have a good track record, so it won’t happen to me.” But that’s not always true. There are many examples of builders with decades of pristine records who face not just one but many structural claims in a short period of time. Having so many things go wrong all at once can crush the progress and growth your company has made over the years.
A third-party structural warranty from 2-10 HBW can cover structural defects outside your control. That protection goes beyond simply fulfilling the Statutes of Repose for your state. It also protects your reputation, which you’ve spent your entire career building. It gives you a solution to the unexpected so that the unexpected doesn’t tear you down.
A third-party structural warranty shows neutrality
One of best things about a third-party warranty is that is a third party creates the language and determines coverage. This provides a level of neutrality that benefits all parties and protects against any real or perceived bias.
In general, a third-party warranty from 2-10 HBW provides two benefits in this respect:
- If there is a dispute that cannot be reconciled by 2-10 HBW’s dispute resolution team, third-party coverage from 2-10 HBW has binding arbitration. That means you don’t have to litigate.
- If you do find yourself in court, third-party language tends to be much stronger than if you wrote the warranty document yourself. Courts may view warranty documents you write yourself as self-serving. Generally, courts side with the buyer in these situations.
It protects your buyers’ budgets and your bottom line
Structural claims are expensive. On average, they cost between $42,000 and $113,000 to address per claim. Compounding that problem is that when one structural claim occurs, it’s common for other claims to occur in the same area. So, you may not be dealing with just one expensive claim but several all at once. That can destroy your bottom line and harm your buyers’ budgets, too. Because without a third-party structural warranty, you’re on the hook. And if you can’t pay, your buyer may not have the financial recourse to fix the problem.
A third-party structural warranty from 2-10 HBW protects your bottom line and your buyers’ budget. It transfers the responsibility for addressing structural defects off of your books and onto ours. That means that if a qualified structural defect happens, you aren’t responsible for addressing it—we are. As the industry leader in structural warranties, we’ve provided this protection since 1980. It’s helped protect builders’ reputations and bottom lines since then, which is why it’s such a good idea for all builders to cover their homes with a structural warranty from 2-10 HBW.
A third-party structural warranty validates you
Few things are more frustrating than doing good work, having a proven track record of quality, and still having prospects hesitate to work with you. But when prospective buyers consider a home, they’re likely to take every precaution they can, which is why third-party validation is so important. A third-party structural warranty from 2-10 HBW, the industry leader in structural warranties, is a way for you to get that third-party validation.
It’s one thing to show prospects all of your building bona fides. It’s another, much more powerful thing for someone else to back those claims up. With a structural warranty from 2-10 HBW, you have the industry leader telling your prospects, “This is a high-quality builder who is doing everything in their power to protect you and your home against unexpected structural defects.” Additionally, to purchase a structural warranty from 2-10 HBW, you must be a Builder Member, and to become one, there are several criteria you must meet.
Finally, third-party validation matters to buyers, especially younger buyers. In fact, 94% of prospective home buyers say that they are more likely to purchase a new home from a builder that offers a structural warranty. Also, 4 of 5 buyers value a third-party, insurance-backed structural warranty. A third-party structural warranty from 2-10 HBW is a win-win for you. It provides the third-party validation prospects need with protection they crave, letting you leverage your reputation to make more sales.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.