California Home Builders Experience Major Structural Damage | 2-10 HBW

Structural claims happen more often around the country than most people think. In fact, 1-in-4 homes experience some structural distress over their lifetime, and 5% of all homes experience major difficulties*. This was the case for three separate home builders in California who saved hundreds of thousands of dollars because they enrolled their homes with a 2-10 Home Buyers Warranty^® (2-10 HBW) Structural Home Warranty. Here’s a brief overview of their cases.

El Centro, CA

Between 1993 and 1997, a California builder out of El Centro built 166 steel-framed homes and all were enrolled in the 2-10 HBW Structural Home Warranty program. Between four and six years after the homes had all closed escrow, structural damages were discovered in each one and reported to the warranty insurer. Upon investigation, it was found that the concrete foundation had large amounts of calcium chloride, which lead to the corrosion of the steel framing. The warranty insurer paid approximately $3.2 million for the repair of the structural defects.

Yorba Linda, CA

In 1990 and 1997, a California builder out of Yorba Linda built a total of eight homes enrolled in the 2-10 HBW Structural Home Warranty program. Between three and seven years after closing escrow, the foundations experienced structural damages. Upon investigation, it was found that the fill supporting the foundation was not adequately compacted. The warranty insurer paid approximately $2.3 million to repair the structural defects.

Rancho Murieta, CA

In July 2009, the Wall Street Journal printed a story about structural defects that were occurring in homes in a subdivision in Rancho Murieta, CA. The builder featured had enrolled only five homes within the subdivision in the 2-10 HBW Structural Home Warranty program. Between two and four years after closing escrow, structural claims were reported due to expansive soils that resulted in uneven heaving soil. The warranty insurer paid the homeowners approximately $990,000, which equated to the full purchase price for the five homes enrolled in the program.

*Richard Handy, The Day The House Fell, 1995