One Year Home Warranty and Warranties
Deciding what type of warranty to select for your newly constructed home can be a difficult task, but it doesn’t have to be. Companies like 2-10 Home Buyers Warranty ® (2-10 HBW®) break their warranties into easy-to-understand products, allowing builders to apply for the insurance-backed structural warranty that is best suited for their business.
Advantages of One Year Home Warranties
Structural warranties often house the one year warranty within the full 2-10 warranty package. The 1 year insurance-backed warranty provides surety coverage against defects in workmanship and materials. The surety coverage for this warranty includes specified components that will be repaired, replaced or paid. Often referred to as a “fit and finish” warranty, the one year portion of a 2-10 warranty includes coverage for workmanship, defects for items such as cabinets, counter tops, door panels, exterior siding, hardwood floors, basement floors, ceramic tile, drywall, interior trim, paint and fireplaces. The 1 year portion of the warranty is effective the day the home closes.
Two Year Home Warranties
The 2 year insurance-backed warranty is a builder’s surety warranty covering behind-the-wall system defects, including supply piping, waste piping, duct-work and electrical wiring. The 2 year warranty does not cover outside-of-the-wall systems and appliances (such as water heaters, dishwashers and HVAC systems), which are initially covered by the manufacturer’s warranty. The 2 year portion of the warranty is effective the day the home closes.
Ten Year Home Warranties
The 10 year insurance-backed warranty provides a full 10 years of coverage for qualified structural defects. The 10 year warranty covers the load bearing members of a new home, including roof framing, load-bearing walls, beams, columns, foundation and floor framing. In the event that the load-bearing elements experience actual physical damage caused by failure that affects their load bearing function to the extent the home becomes unsafe, unsanitary or otherwise unlivable, a claim can be made with the warranty insurer. Although each claim varies from the last one, the average cost of a claim is $42,500. This statistic alone makes the 10 year warranty very attractive to home buyers as their investment is protected. In turn, purchasing a structural warranty protects builders in case of a structural claim. Just like its 1 and 2 year warranty counterparts, the 10 year warranty is effective the day the home closes.
Advantages of Longer Term Home Warranty Programs
While builders have a legal obligation regarding the quality of the homes they build, the length of this obligation varies from state to state due to the governing state’s Statute of Repose. This protects the builder’s business and the homeowner’s confidence and satisfaction. For instance, in the state of Colorado, the Statute of Repose is six years. But what if there is a structural issue after the six years? Research has shown that most structural claims occur within 4 to 7 years after completion of a new home closes. Selecting a 10 year structural warranty adds an additional 4 years (in the state of Colorado) of protection for homeowners. View our state by state list of Statues of Repose here.
Applying to Become a Builder Member
To purchase a 2-10 HBW structural warranty, it is necessary to first apply to become a 2-10 HBW Builder Member. Once a builder application is accepted the builder will:
- Gain access to industry leading warranty products.
- Shift financial responsibility for qualifying structural defects to a third party insurance-backed warranty.
- In the event of disputes, receive assistance from 2-10 HBW in conciliation and arbitration, minimizing contested claims.
Home and House Warranty and Warranties
While there are a variety of structural warranties on the market, 2-10 Home Buyers Warranty provides an insurance-backed warranty with the most comprehensive coverage. One in seven new construction homes built are covered by a 2-10 HBW Structural Warranty. This additional support protects builders from legal liability and increases home buyer confidence. To learn more about your structural warranty options, contact 877.777.1344 or visit 2-10.com!