Offering an express warranty from a third-party administrator is the smartest way a builder can protect themselves and their homeowners. Independent, third-party neutrality is a key element that courts look at when evaluating disputes. If a builder is utilizing a warranty program that they created themselves, it may be construed as biased should a dispute arise.

All new homes come with a warranty implied by law, which often has uncertain terms, standards, and procedures for addressing warrantied items. Many reputable builders provide buyers of new homes with an express warranty to clear up the confusion caused by these implied warranties, which can cover specific aspects of the home, including workmanship, distribution systems (electrical, plumbing, mechanical), and the structural integrity of the home.

• The terms builder warranty and structural warranty are often used interchangeably and refer to the warranty coverage that builders provide on the homes they build. 
• A structural warranty specifically provides coverage and guidelines for the structural components of a new home. 2-10 offers builder warranties that can suit your needs, with available coverage guidelines for the workmanship and distribution systems warranties in addition to structural components. 
• The best protection for home builders and new home buyers is a warranty that provides coverage for all three areas – workmanship, distribution systems, and structural components, which helps to establish expectations for all aspects of the new home.

A structural defect under a 2-10 program warranty covering most states is defined as “the actual physical damage to the designated load-bearing elements of the home caused by failure of such load-bearing elements, which affects their load-bearing functions to the extent that home becomes unsafe, unsanitary or otherwise unlivable.” All four parts of this definition must be satisfied in order for a condition to qualify as a structural defect.

Some states have other, specific requirements for a structural defect warranty, which are specifically defined in the 2-10 program warranty booklets covering those states. 

The insurance-backed warranties from 2-10 are further reinsured by Swiss Re and SCOR Re, two if the world’s largest reinsurers. With combined surplus of holdings of more than $4 billion, you can trust the financial backing of our warranties.

If you are a builder who would like to become a 2-10 member, please apply here.

If you are an existing 2-10 member, you can easily log in to the builder portal to submit your homes for enrollment into the warranty program. If you are not currently a 2-10 member, you can register here.