New Home Warranties

Why should I provide a home warranty?

One out of every 200 new homes built today will experience a structural failure requiring repair at an average cost of $30,000.
25% of structural claims are due to framing problems.
More than 50% of structural claims are caused by either soil settlement in improperly compacted fills, or by expansive soil.

What is a "structural defect"?

A structural defect is defined as actual physical damage to the designated load-bearing elements of the home caused by failure of such load-bearing elements, which affects their load-bearing functions to the extent that the home becomes unsafe, unsanitary or otherwise unlivable. All four parts of this definition must be satisfied in order for a condition to qualify as a "Structural Defect." Defined similarly as that contained in regulations of the Department of Housing and Urban Development. (Source: 2-10 Home Buyers Warranty)

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Last Updated: March 01, 2005 10:41 PM