Homeowners > What is a Structural Warranty?

 

The need for ten year structural warranties began in the 1970s when Congress suggested that builders escrow 10% of the price of a home to cover structural defects (which statistically occur about as often as major fire damage).  As builder margins were not equipped to absorb that 10%, home warranty companies were conceived to bear the risk and protect both builders and buyers from being legally exposed to construction defect issues.

A structural warranty protects homeowners in the event their home develops a structural defect.  Should a defect occur and a claim arise, it is in our best interest to address the problem immediately.  First, however, you will need to be familiar with what is covered under your warranty.  The list below represents covered components:

1.  Foundation systems and footings

2.  Load-bearing beams and girders

3.  Lintels

4.  Roof framing members (rafters and trusses)

5.  Floor framing systems (joists and trusses)

6.  Load bearing walls

7.  Load bearing columns

8.  Structural roof sheathing (only if the Home has the
     original FHA/VA financing still in effect)

Click here or on the image below to view a larger image of these coverage items.

Your structural home warranty also includes a provision for third-party arbitration should a disagreement occur between you and your builder.  This is an out-of-court settlement procedure in which both parties present their case to an unaffiliated arbitrator and agree to abide by their decision. The goal is to resolve disagreements quickly and fairly without incurring exorbitant court costs.

StrucSure Home Warranty offers 2-10 and 10-year structural home warranties.  These warranties are typically purchased by your builder on your behalf (the costs, which are minimal, are usually rolled into your home loan). 

The 10-year warranty covers major structural defects, which are defined as a failure in a load-bearing element of the home to the extent it becomes unsafe or unsanitary.  It does not cover cosmetic workmanship items.  This coverage begins on day one of closing and lasts for 10 years.

Our two-year warranty covers workmanship issues for one year and delivery portion systems (piping, wiring, and ductwork) for two years after the date of closing if your builder is unable to meet their warranty obligations.

If you feel you have a structural claim, please call StrucSure Home Warranty toll free at 1.877.806.8777 or visit our forms page.  A claims representative will respond to you within 24 hours.