ABOUT THE BUILDER
A custom home builder, building million dollar homes in Nevada, always conducted an independent geotechnical investigation on the lots purchased from land developers. This builder had been building homes for approximately four years without any claims. Even with a good claim history, the builder enrolled 70 homes in the 2-10 Home Buyers Warranty® (2-10 HBW) Structural Home Warranty program and provided a 10 year third party insurance-backed structural defect warranty to their homeowners. This was a builder doing things the right way.
YOU NEVER SEE IT COMING
After approximately four claim-free years, while ensuring proper soil compaction, something happened. The builder received a claim on two of the homes built, only eighteen months after being constructed.
One of the homes was reported to have severe structural damages, even after the preconstruction geotechnical investigation had shown 97% soil compaction. How did this happen? Unbeknownst to the builder, below the 3 feet of structural fill on the lot, there was 40 feet of poorly compacted fill that contained extensive pockets of expansive clay. During the analysis of the home’s damage, the engineer concluded that the home could experience additional settlement as great as 1.5 feet, aggravating the home’s already racked doors, and cracked drywall and stucco.
RESOLUTION
Fortunately for this builder, the home was enrolled in the 2-10 HBW Structural Home Warranty program. As a result, the warranty insurer investigated the home and developed a plan to make repairs, which required the installation of almost two dozen piers to a depth of 30 feet. Structural and cosmetic repairs totaled well over $200,000. The builder’s business survived and the homeowner’s home was repaired in large part because of the structural warranty provided by 2-10 Home Buyers Warranty.
