A structural warranty provides performance guidelines and warranty coverage for the workmanship, distribution systems and load-bearing structural components of a newly constructed home. Home builders are responsible for the integrity of the homes they build for a period of time, and structural warranties are used to help define coverage, establish processes, set expectations and provide support and guidance should an issue arise.
A structural warranty is an important risk management tool that provides a written agreement between the builder and homeowner that clearly defines coverage and sets expectations.
Whether they know it or not, builders have a statutory responsibility for the homes they build. Simply put, this means a builder is on the hook for the workmanship, distribution systems and structural components on every home they build for a period of time (period varies by state, with the majority of states holding the builder responsible for 10 years for structural components).
Without an express, written structural warranty, a builder may be subject to implied warranty laws, which can be vague and unpredictable, leaving the builder exposed.
Offering a structural warranty from a third-party provider is the smartest way a builder can protect themselves and their homeowners. Independent, third-party neutrality is a key element that courts look at when evaluating disputes. If a builder is utilizing a warranty program they created themselves, it may be construed as “self-serving” and actually cause more harm if a dispute arises.
Most reputable builders provide buyers of new homes with a warranty on very specific features, including the structural integrity of the home.
A home builders warranty also known as a structural warranty provides coverage for workmanship, distribution systems and 10 years of coverage for qualifying structural defects on new construction homes.
A Home Builders Warranty is a structural warranty that provides coverage for workmanship, distribution systems and structural defects on new construction.
Third-party, insurance-backed warranties are considered the gold standard of warranty protection for new construction homes. The insurance backing allows builders to transfer their liability to a warranty insurer, so they aren’t on the hook for expensive structural repairs. With the average structural defect claim costing $42,500 or more, insurance-backed warranties are an inexpensive tool to help protect builders and their homeowners from potentially catastrophic losses.
The term ‘structural warranty’ and ‘builder’s warranty’ are often used interchangeably, and refer to the warranty coverage builders provide on the homes they build. Strictly speaking, a structural warranty provides coverage and guidelines for the structural components of a new home, whereas a builder’s warranty provides coverage and guidelines for the workmanship and distribution systems as well as the structural components. Nearly all structural warranty programs include coverage options for the workmanship and distribution systems, which is why the terms ‘structural warranty’ and ‘builder’s warranty’ are often considered synonymous.
The best protection for home builders AND new home buyers is a third-party warranty that provides guidelines and coverage for all 3 major areas: workmanship, distribution systems and structural components.
A 2-10 warranty is another name for a new construction home warranty. It is often used interchangeably with ‘builders warranty’ or ‘structural warranty’, and refers to a warranty that provides workmanship, distribution systems and structural coverage for builders and homeowners on newly constructed homes.
A structural warranty for home builders provides 1 year of coverage for workmanship, 2 years of coverage for distribution systems and a full 10 years of third-party insurance-backed coverage for qualifying structural defects. Builders must register to become a member of the 2-10 Home Buyers Warranty program, and home buyers may refer their builder.
Yes. We offer fully transferable warranties. If the original home buyer sells their home before the 1, 2 or 10-year coverage is complete, this protection can be transferred to the new owner.
The insurance-backed warranties from 2-10 Home Buyers Warranty are reinsured by Swiss Re and SCOR Re, two of the world’s largest reinsurers. With combined surplus holdings in excess of $4 billion, you can trust the financial backing of our warranties. We have paid out more than $300 million in structural defect claims, helping our builders protect their business and their customers.
The average cost of 10 full years of structural coverage is less than .5% of the total purchase price of the home, including the land. Become a builder member today.
A Home Builders Warranty is a structural warranty that provides coverage for workmanship, distribution systems and structural defects on new construction homes.
Most new homes are covered by builder warranties for workmanship, distribution systems and structural components.
If you would like to register to become a builder member with 2-10 Home Buyers Warranty, you may register here.
Structural coverage cannot be renewed past the 10 years it was originally warrantied for.
To check on the status of a structural complaint, or a claim for your new construction home, call 855.429.2109.
2-10 Home Buyers Warranty has extensive experience in all 48 contiguous states. Our local representatives are experts in the most common soil, foundation and structural problems that builders face. Simply put, the guidance our team offers home builders is second-to-none. We even make a point to visit our member builders whenever possible.
Homeowners insurance complements structural warranty coverage, but they do not offer the same type of protection. Compared to a structural warranty, home insurance policies generally cover damage due to specific risks that are sudden or accidental. The damages could occur after incidents like: fires, natural disasters and thefts or robbery. Check out what structural warranties cover here.
The total cost of the structural warranty coverage is based on a percentage of the home’s sale price and is paid for by the builder.
A structural defect is defined as, “the actual physical damage to the designated load-bearing elements of the home caused by failure of such load-bearing elements, which affects their load-bearing functions to the extent that the home becomes unsafe, unsanitary or otherwise unlivable.”
All four parts of this definition must be satisfied in order for a condition to qualify as a structural defect.