1. The 2-10 Home Buyers Warranty provides structural warranty coverage and acts as an administrator in the complaint process, but does not advocate for either party. The warranty insurer is responsible for paying claims if the builder defaults. 2. Many common beliefs about structural warranty programs are misconceptions. In reality, the warranty covers limited obligations, does not provide legal counsel for builders, and allows homeowners to file suits. The warranty insurer does pay qualified claims amounting to over $250 million. 3. Structural defects from soil movement are more common than assumed, and are the leading cause of property damage in the US. The Construction Performance Guidelines used in the warranty program are adopted from the National Association of Home

1. top ten
misconceptions
about a structural warranty program
And answers that will delight you.
LONG LIVE HAPPY HOMES®
LONG LIVE HAPPY HOMES®

2. 1. 2-10 Home Buyers Warranty® (2-10 HBW)
is the warrantor for the 2 year systems.
the builder is actually the warrantor of
the systems coverage. The warranty insurer for
the 2-10 HBW Structural Warranty stands behind
the builder in the event of a default. The 2 year
systems coverage is surety coverage, meaning
that the warranty insurer steps up and covers the
loss or damage if the builder defaults.

3. 2. 2-10 HBW advocates for the homeowner
in the complaint process.
2-10 HBW takes a neutral standpoint
and provides an administrative function between
the homeowner and builder. If a complaint
escalates to a claim, 2-10 HBW will send the
complaint to the warranty insurer who will send
a claim receipt acknowledgement letter to both
the homeowner and builder, and contact both
parties within 24 hours to begin an investigation.
“You’re always on the homeowner’s side”

4. 3. It is good customer service to exceed
your warranty obligation.
many savvy business people
believe the old adage that a happy customer
will drive business. If you decide to exceed your
warranty obligations it’s important to tell the
homeowner, in writing, that you are not waiving
the warranty obligations as outlined in the
warranty document.

5. 4. If you avoid a complaint it will go away.
Avoiding complaints can only escalate disputes,
which can create unhappy homeowners and make
it difficult to reach a resolution.
However, if complaints are recognized right away,
a homeowner may be more willing to come to a
resolution more quickly.

6. 5. The warranty encompasses all of the
builder’s obligation and responsibilities.
The warranty is an express limited
warranty. While it covers most of a
builder’s implied warranty obligations, a builder
may have obligations beyond the warranty, such as
contractual or statutory requirements. If you want
to block other obligations, it’s important to work
with your attorney to substitute the warranty as
the homeowners’ exclusive remedy for any defect
with the home to the extent allowed by state law.

7. 6. 2-10 HBW provides legal counsel
for the builder.
2-10 HBW facilitates dispute
resolution, meaning there is not a defense
obligation in place between the builder and
warranty company or warranty insurer.

8. 7. The warranty prevents the homeowner
from filing suit.
Homeowners are free to file suit at any time.
The warranty company can provide materials
that may help compel or move the matter to
arbitration.

9. 8. The warranty insurer does not pay claims.
The warranty insurer pays qualified claims
covered under the warranty. To date, the
warranty insurer for 2-10 HBW has
paid over $250 millionin claims.

10. 9. Structural defects never happen.
Structural defects, mainly caused by
soil movement, occur more often than
you think. In fact, soil movement causes more
property damage in the U.S. than all other natural
disasters combined (including earthquakes,
tornadoes, hurricanes and flooding).

11. 10. The Construction Performance Guidelines
are established by 2-10 HBW, not the
National Association of Home Builders.
2-10 HBW adopts guidelines
from the National Association of Homebuilders
(NAHB). The construction industry and 2-10 HBW
have attempted to identify the most common
actual physical deficiencies that occur as well
as who is responsible for remedying the deficiencies.
If a guideline has not been specified, 2-10 HBW or
the builder may refer to the Residential Construction
Performance Guidelines 3rd Edition-Contractor
Reference published by the NAHB.