Does a builders warranty cover foundation damage?
A builders warranty from 2-10 Home Buyers Warranty (2-10 HBW) covers foundation issues for newly built homes for up to 10 years. When homeowners buy homes from you, one of the biggest questions they’ll have is often about their foundation. “What do I do if my foundation develops a crack?” When you purchase a builders warranty from 2-10 HBW, you can give your buyers a confident answer.
What types of warranties cover a home’s foundation?
A builders warranty (also called a structural warranty) from 2-10 HBW covers a home’s foundation against damage for up to 10 years. This includes damage to the foundation caused by soil movement. Soil movement, which is entirely out of your control as a builder, accounts for 80% of structural claims.
In the US, each state has a Statute of Repose. This means that you’re responsible, by law, for addressing structural claims for a certain period of time. Without a structural warranty, you’d be financially responsible for fixing structural problems caused by foundation damage. The average structural claim costs between $42,000 and $113,000 per claim.
With a structural warranty from 2-10 HBW, you move that liability off your books and onto ours. In this structural agreement, the homeowner is the beneficiary of the warranty policy, while you are the insured party.
How long does a 2-10 HBW builders warranty last?
A 2-10 HBW builders warranty has 3 components, each spanning a different length of time.
- Workmanship: This component typically lasts 1 year and addresses the fit, finish and materials you use to build the home. It provides construction performance standards and coverage so that you and your buyer understand who’s responsible for addressing issues. This third-party validation is very important to buyers and can differentiate you as a builder.
- Distribution systems: Your distribution systems warranty typically lasts 2 years and addresses “behind the wall” issues. It provides clear standards regarding plumbing, mechanical and electrical systems. Like the workmanship component, it establishes construction performance standards so that you and your buyer know who’s responsible for fixing issues.
- Structural: This component typically lasts 10 years and provides you with industry-leading coverage against structural damage to the homes you build. This includes things like soil movement, heave and settlement. When qualified damage occurs to the home’s foundation, 2-10 HBW covers the costs to repair it, saving you time and money.
What are the most common causes of home foundation damage?
While there are many things that can cause foundation damage, the most common causes of home foundation damage include the following:
- Soil movement
- Poorly compacted fill material
- Erosion
- Poor construction
With a structural warranty from 2-10 HBW, you get coverage for the things that are out of your control, like erosion and soil heave, as well as clearly defined construction standards.
What does a home builder warranty cover?
A standard home builder warranty covers load-bearing aspects such as girders, footing, columns, masonry, floor systems and certain walls.
Different companies have different coverages, but 2-10 HBW provides the most comprehensive coverage for builders. A home builder warranty from 2-10 HBW provides protection guidelines for workmanship for 1 year. It provides coverage for distribution systems for 2 years. And the structural warranty covers defects to the home’s structure for up to 10 years.
How does a structural warranty protect home builders?
A structural warranty protects home builders from ongoing liabilities related to unpredictable structural failures. Builders of all sizes can benefit from a structural warranty from 2-10 HBW in 3 ways:
- Protects your profit. When you have a 2-10 HBW structural warranty, we take on the financial responsibility for structural defects. Those defects can eat into your bottom line, especially when several problems pop up at once.
- Promotes your quality. Did you know that 94% of prospective buyers are more likely to purchase a home from a builder that offers a structural warranty? A 2-10 HBW structural warranty can give you the third-party validation your clients look for and expect. After all, buying a home from you will likely be the biggest investment they make. You can give them even more confidence that it’s a wise investment with a 2-10 HBW structural warranty.
- Lets you plan for your future. Often, structural issues crop up years after you sell the home. But you’re still responsible for fixing those problems throughout your state’s Statute of Repose. Rather than operating on a wing and a prayer that nothing will go wrong, a structural warranty lets you move into the future with confidence, because you know you and your buyers are covered by the industry leader.
Learn how you can protect your business and add valuable selling points to your new builds with a 2-10 HBW structural warranty.
