top tenmisconceptionsabout a structural warranty programAnd answers that will delight you.LONG LIVE HAPPY HOMES®LONG LIVE HAPPY HOMES®
1. 2-10 Home Buyers Warranty® (2-10 HBW)is the warrantor for the 2 year systems.the builder is actually the warrantor ofthe systems coverage. The warranty insurer forthe 2-10 HBW Structural Warranty stands behindthe builder in the event of a default. The 2 yearsystems coverage is surety coverage, meaningthat the warranty insurer steps up and covers theloss or damage if the builder defaults.
2. 2-10 HBW advocates for the homeownerin the complaint process.2-10 HBW takes a neutral standpointand provides an administrative function betweenthe homeowner and builder. If a complaintescalates to a claim, 2-10 HBW will send thecomplaint to the warranty insurer who will senda claim receipt acknowledgement letter to boththe homeowner and builder, and contact bothparties within 24 hours to begin an investigation.“You’re always on the homeowner’s side”
3. It is good customer service to exceedyour warranty obligation.many savvy business peoplebelieve the old adage that a happy customerwill drive business. If you decide to exceed yourwarranty obligations it’s important to tell thehomeowner, in writing, that you are not waivingthe warranty obligations as outlined in thewarranty document.
4. If you avoid a complaint it will go away.Avoiding complaints can only escalate disputes,which can create unhappy homeowners and makeit difficult to reach a resolution.However, if complaints are recognized right away,a homeowner may be more willing to come to aresolution more quickly.
5. The warranty encompasses all of thebuilder’s obligation and responsibilities.The warranty is an express limitedwarranty. While it covers most of abuilder’s implied warranty obligations, a buildermay have obligations beyond the warranty, such ascontractual or statutory requirements. If you wantto block other obligations, it’s important to workwith your attorney to substitute the warranty asthe homeowners’ exclusive remedy for any defectwith the home to the extent allowed by state law.
6. 2-10 HBW provides legal counselfor the builder.2-10 HBW facilitates disputeresolution, meaning there is not a defenseobligation in place between the builder andwarranty company or warranty insurer.
7. The warranty prevents the homeownerfrom filing suit.Homeowners are free to file suit at any time.The warranty company can provide materialsthat may help compel or move the matter toarbitration.
8. The warranty insurer does not pay claims.The warranty insurer pays qualified claimscovered under the warranty. To date, thewarranty insurer for 2-10 HBW haspaid over $250 millionin claims.
9. Structural defects never happen.Structural defects, mainly caused bysoil movement, occur more often thanyou think. In fact, soil movement causes moreproperty damage in the U.S. than all other naturaldisasters combined (including earthquakes,tornadoes, hurricanes and flooding).
10. The Construction Performance Guidelinesare established by 2-10 HBW, not theNational Association of Home Builders.2-10 HBW adopts guidelinesfrom the National Association of Homebuilders(NAHB). The construction industry and 2-10 HBWhave attempted to identify the most commonactual physical deficiencies that occur as wellas who is responsible for remedying the deficiencies.If a guideline has not been specified, 2-10 HBW orthe builder may refer to the Residential ConstructionPerformance Guidelines 3rd Edition-ContractorReference published by the NAHB.