Structural Warranty and Warranties
For builders, constructing a new home can be a stressful and complicated ordeal. Despite home inspections, hidden and unavoidable construction defects may occur, leaving the builder with potentially high costs, legal liability and home buyer dissatisfaction. To decrease your business liability, while increasing buyer confidence and happiness, utilize a 2-10 HBW warranty.
Structural Warranties Provide Purchaser Confidence
A structural warranty from 2-10 Home Buyers Warranty® (2-10 HBW®) provides insurance-backed coverage for unforeseeable, catastrophic structural defects. The 2-10 HBW Structural Warranty is a risk management tool that mitigates risk for builders. The structural warranty provides homeowners with the confidence that qualifying structural issues will be resolved and fixed.
For many individuals, purchasing a home is the single largest investment they will ever make; the existence of an insurance-backed structural warranty assures them that in the event of a qualified defect, they can recover from the insurance provider. It is important to note that structural warranties and builder warranties are not synonymous. While a 2-10 HBW Structural Warranty is always insurance-backed, builder’s warranties are not always backed.
Research shows that 80% of home buyers surveyed value a warranty when purchasing a newly constructed home. This percentage can be attributed to a variety of facts. Structural warranties are purchased by the builder, which speaks to the builder’s dedication to the quality of their newly constructed home and the satisfaction of their homeowners. When a written the structural warranty is provided, both home buyers and builders can rest assured that they have a legal contract that both parties agreed to, outlining each party’s responsibilities. In the event that a qualifying structural defect does occur, homeowners know that they will be covered for up to ten years.
Structural Warranties Support your Sales Efforts
Structural warranties support builders in a multitude of ways. While structural warranties protect their business from liability as well as create buyer confidence, they also support builder sales efforts. Research has shown that 80% of buyers and sellers think that a warranty is important to protect their house; this means that providing a structural warranty when selling a new home provides a sales incentive, making the home stand out from the competition.
Structural Warranties Protect Your Reputation
Most importantly, structural warranties provide protection for your reputation. 2-10 HBW warranties cover one year against qualifying defects in workmanship for one year, qualifying defects in mechanical systems for two years and qualifying structural defects for ten years. In essence, providing a 2-10 HBW Warranty helps to maintain the positive relationship between builder and buyer, which protects the builder’s reputation and encourages buyers to choose their business. Are you interested in learning how purchasing a structural warranty can benefit your business and increase your sales? Have even better sales by applying to be a builder member with Home Buyers Warranty today!