Warranty Coverage –

Frequently Asked Questions

 

How is American eBuilder warranty coverage structured?

American eBuilder warranties follow a three-phase coverage structure, with responsibilities clearly defined by year:

  • Year 1: Builder covers defects in workmanship and materials, specific delivery systems and qualifying major load-bearing structural defects
  • Year 2: Builder covers specific delivery systems and qualifying major load-bearing structural defects
  • Years 3–10: Insurer covers qualifying major load-bearing structural defects

 

This structure provides clarity, compliance, and long-term protection. All warranty terms are expressed in the written warranty document for a specific address.

What is covered during the first year of coverage?

During the first year, the builder is responsible for issues related to defects in workmanship and materials, specific delivery systems and qualifying major load-bearing structural defects.

This includes defects resulting from construction methods or installed materials, as defined by the builder’s warranty obligations.

What systems are covered during the second year?

During the second year, coverage is limited to defects with the major delivery systems, which include:

  • HVAC delivery systems
  • Plumbing delivery systems
  • Electrical delivery systems
  • Septic delivery systems

 

The builder is also still responsible to repair major load-bearing structural defects during year 2.

What is covered from years three through ten?

From years three through ten, coverage shifts to the Insurer, who covers qualifying major load-bearing structural defects.

This includes failures of covered load-bearing components that affect the home’s structural integrity, subject to the warranty’s terms and conditions.

What is considered a major load-bearing structural defect?

A structural defect is a failure of a covered load-bearing component that compromises the structural integrity of the home

Examples may include qualifying foundation movement or failure of structural framing elements, as defined in the warranty standards.

Which structural components are typically covered in years 3–10?

Covered components commonly include:

  • Foundations and footings
  • Load-bearing walls
  • Beams and columns
  • Floor joist and truss systems
  • Roof joist and truss systems

 

Exact coverage is defined in the warranty documentation.

What is not covered under the warranty?

The warranty generally does not cover:

  • Normal wear and tear
  • Maintenance-related issues
  • Damage caused by homeowner neglect or external events

 

Specific exclusions are outlined in the warranty.

Who is responsible for coverage in each year?

Responsibility depends on when the issue occurs:

  • Year 1: Builder (covered defects in workmanship and materials, covered delivery systems and listed defects with major load bearing structural components)
  • Year 2: Builder (covered defects with the delivery systems and listed major load bearing structural components)
  • Years 3–10: Warranty insurer (covered defects with the major load bearing structural components)

 

Is structural coverage transferable to a new homeowner?

Yes. Because the warranty stays with the home address, all coverage during all ten years is typically transferable to subsequent homeowners for the remainder of the coverage term, subject to warranty terms. A warranty transfer fee may be applicable with appropriate transfer documentation.

 

If you’re new to the concept of structural warranties, you may want to start with our explanation of how the 1-2-10 warranty structure coverage works for builders and homeowners.