A common complaint that the 2-10 Home Buyers Warranty (2-10 HBW) Warranty Administration (WA) receives from homeowners is the Builder’s/Seller’s failure to complete construction according to the agreed upon plans. Examples include incorrect materials used, failure to install an item or an item installed in the incorrect location. But do you know that Section VIII.5 excludes failure of the Builder/Seller to complete construction or construction which is noncompliant with plans and specifications?
As stated in the warranty contract, coverage is limited to qualifying construction defects. If an item is not installed according to plans, and the item is not exhibiting a qualifying defect, it is excluded from coverage. Following from this, if an incorrectly installed item is exhibiting a qualifying defect, only the defect is eligible for coverage. Remediation of the condition that caused it to be incorrect would not be included in the scope of the repair.
BUILDER BEWARE!
Although some of the examples above are excluded from warranty coverage, that does not mean the homeowner does not have possible recourse outside the framework of the warranty. This could include a lawsuit for breach of contract and/or negligence, so it is always a good idea to make sure the sales contract contains 2-10 HBW’s Addendum to Purchase Contract!
