What Is a Structural Defect Warranty?

A structural defect warranty protects a home in the case of a structural failure that affects the load-bearing portions of the home. Structural coverage protects warranted structural components. Specific tolerances and standards enumerated within the warranty allow the homeowner to see exactly what the builder or Insurer is responsible for each year during years one through ten.

Many structural defects occur due to soil movement under the foundation of the home. One way to mitigate damage that soil movement can cause is with a 10-year warranty.

Do I Really Need a Structural Defect Warranty?

Roughly 25% of new homes will experience structural issues in some way, potentially leaving the homeowners facing a repair bill in the tens-of-thousands of dollars. Even if a builder provides his own structural warranty, he may not have the reserves set aside to cover full repairs. An insurance-backed warranty protects both the builder and the homeowner from unnecessary risk.

Most buyers agree that the cost of a structural defect warranty is well worth the peace of mind it provides. Your homeowners shouldn’t worry that structural defects will lead to a massive dent in their bank accounts.

Structural Defect Warranty Options with American eBuilder

At American eBuilder, we have designed three warranty options to include coverage for structural issues. Choose the one that best suits your particular needs as a builder and seller of homes. Options include:

• The “2+8” HUD (FHA/VA) Compatible Warranty: This warranty is available in most states and is appropriate for HUD-financed homes. It includes a two-year written builder’s limited warranty and a 10-year written limited warranty on warranted structural components. A standard version of this warranty is also available for buyers who are using conventional financing or paying with cash.
• The “1+9” Warranty: This warranty is available in most states and applies to non-HUD (FHA/VA) financed homes. It includes a one-year written builder’s limited warranty and a 10-year written limited warranty on warranted structural components.
• Standard 5-Year Remodelers Warranty: This warranty applies to minor or major remodels, additions, flip homes, and large-scale renovations. Builders can tailor the warranty to cover work done exclusively by them, eliminating the liability of work done by others. With this warranty, the remodeler is responsible for the first year, similar to a builder’s “punch list,” and then the Insurer covers the remaining 4 years on warranted structural components. Homeowners have peace of mind knowing that American eBuilder has vetted their remodeling professional as a quality vendor.
• The “2+4” Texas 6-Year Warranty: This warranty is exclusively available to Texas builders only. It is comprised of a 2-year written, expressed builder’s limited warranty and a 6-year written, expressed limited warranty on specific structural components.

Contact American eBuilder Today

A comprehensive structural defect warranty provides an excellent selling point for builders, realtors, and buyers, as potential homeowners can buy with much more confidence. To find out more about structural warranties from American eBuilder — and the options you have for including structural coverage — contact us today.