The gold standard—what are you offering your home buyers?

Industry's leading 3rd party home warranty company

The gold standard—what are you offering your home buyers?

When purchasing a structural warranty, it’s important to know your chosen warranty provider and understand the warranty agreement’s protection you’re offering your home buyer. A proper understanding saves you time and simplifies the process when a buyer comes to you with a question, and ultimately helps protect your reputation and the trust you’ve established if there’s a claim. Here’s a breakdown of what you need to know.

Get to know your warranty.

Structural warranties follow a 1, 2, 10-year model and include:

• One-year surety coverage–protection against defects in materials and workmanship beginning on closing day.

• Two-year surety coverage–protection against defects in electrical, plumbing and mechanical distribution systems beginning on closing day.

• Ten-year structural warranty–comprehensive coverage for protection against major structural defects beginning on closing day.

Beyond the basics.

Use the following checklist when considering a warranty partner and warranty solution:

  • Homeowner education–language within the warranty contract that accurately and clearly defines what is and is not covered under the warranty.
  • A platform for quick dispute resolution–arbitration provision and an experienced warranty administration team skilled in quick and efficient conciliation of disputes and resolution of homeowner complaints.
  • Residential Construction Performance Guidelines–as defined by the National Association of Home Builders.
  • Flexibility and stability–make sure your warranty insurer is financially strong and the warranty is transferable throughout the ten year term.
  • Builder advice–for warranty service and risk management –this could come in the form of seminars and educational materials.
  • A solid reputation and experience with your business–look for Better Business Bureau ratings of “A,” and favorable recommendations from industry associations.
  • Comprehensive coverage–includes coverage for soil movement and qualified structural defects starting day one.
  • Adding value–does the warranty provider offer materials to help you market to home buyers.
  • Warranty contract language–does the warranty contract accurately and clearly define what is and is not covered.

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