What is a Standard Builders Warranty?
Coverage for Home Builders
A standard builders warranty provides coverage for the workmanship, distribution systems and structural components of a new home.
What is covered with a standard builders warranty?
A standard home builders warranty covers workmanship, distribution systems and building materials for one year after closing. Most new construction warranties cover ductwork, plumbing and electrical systems for a period of two years. The best builders warranties last up to 10 years and cover damage or defects to the major structural components of your home. Items covered by the structural warranty include the foundation and footings, roof framing systems, load-bearing walls, columns, girders, lintels and more.
What is the average cost of a home builders warranty?
The average cost of a 10-year home builders warranty is less than a half percent of the total purchase price of the home (including the land).
What causes structural damage in a home?
Most structural damage is caused by factors outside of a builders control. Soil movement surrounding a home’s foundation is the leading cause and is responsible for more than 80% of structural defects.
What is the cost of an average home builders warranty structural claim?
The average cost of a home builders warranty claim ranges between $42,000 to $113,000.
How do home builders benefit from a structural warranty?
Home Builders benefit from structural warranties in many ways, including:
- Protecting their profit by allowing the warranty company to pay structural claims on their behalf, handle homeowner calls, validate that service requests are covered and more
- Promoting their quality by offering third party validation that promotes peace of mind for potential buyers and differentiates their home in the market
- Plan for the future by off-loading risks and liability to the warranty company
Is a home builders warranty worth buying?
A home builders warranty is extremely valuable to builders and homeowners alike. The builders warranty provides protection for both the builder and the homeowner against defects, sets clear expectations around what’s covered and gives assurance that the home is protected for years to come.
REQUEST A QUOTE on home builder warranty coverage from 2-10 Home Buyers Warranty.