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A structural warranty provides a written agreement between the home builder and the homeowner and clearly defines the builder's work-product obligations related to construction quality and continuing obligations. Under the agreement, the builder is the insured and the homeowner are the beneficiary.
A structural warranty is an insurance policy designed to protect against defects in new buildings, normally for a period of 10 years after completion.
In short, an insurance-backed structural warranty ensures that the warranty insurer will cover the cost to repair qualified structural defects in the home.
According to the Federal Trade Commission, home builders' warranties cover all workmanship and materials used in the building of homes. ... Many home builders, though, offer warranty coverage for up to 10 years for major structural defects affecting the health or safety of their homes' occupants.
Coverage for HVAC, plumbing, and electrical systems is generally two years. Some builders provide coverage for up to 10 years for major structural defects, sometimes defined as problems that make a home unsafe and put the owner in danger. For example, a roof that could collapse is a major structural defect.
Dear Rutan, Most builder warranties cover material and workmanship on a new home for one to two years, with coverage that lasts as long as 10 years on major structural elements. There's much to be wary of these days in the world of new-home warranties.
In a nutshell, it's a policy you pay for that covers the cost of repairing many home appliances if they break down. ... Many people buy a home warranty right when they close on a home, since such protections can provide some much-needed peace of mind that you won't get hit with unexpected expenses soon after moving in.
A basic home warranty costs about $350 to $500 a year or more. A warranty typically covers kitchen appliances, plumbing, water heater, heating and electrical system components, sump pump, whirlpool tub, and ceiling and exhaust fans, Angie's List says.
Generally, a basic home warranty covers systems including heating and cooling, plumbing and electrical, and appliances such as water heater, dishwasher, stove, garbage disposal and a built-in microwave oven. Each warranty company offers different packages. It's important to read all terms before signing anything.
In many cases, at least in the United States, a home warranty is not a warranty at all, but rather a home service contract that covers the repair and/or replacement costs of home appliances, major systems such as heating and cooling, and possibly other components of a home, structural or otherwise.
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