Master Builder

Spring 2018

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STRUCTURAL WARRANTIES THE ILLUSTRATED GUIDE TO QUALITY STRUCTURAL WARRANTY QUALITY OBLIGATION OBLIGATION WHAT IS A STRUCTURAL WARRANTY? A structural warranty provides a written agreement between the home builder and the home owner and clearly defines the builder's work- product obligations related to construction quality and continuing obligations. 2 WHY AN INSURANCE-BACKED STRUCTURAL WARRANTY? A structural warranty, from an established warranty provider, gives builders and home owners confidence that if qualified major structural damages develop in a home, those repairs will be the obligation of the warranty insurer rather than the responsibility of the builder and home owners. 3 WHAT DAMAGES DOES A STRUCTURAL WARRANTY COVER? A structural warranty covers specific types of structural defects: actual physical damage to load-bearing elements of a home that result in failure of its load-bearing function. FAILURE 4 $ 0.005% OF THE TOTAL PURCHASE PRICE, PLUS LAND LESS THAN $ 42,500 $ 113,000 HOW MUCH DOES A STRUCTURAL WARRANTY COST? The average cost of a 10year warranty is less than a half percent of the total purchase price of the home including the land. AVG REPAIR IN LOW RISK STATES IN HIGH RISK STATES 5 80% WHAT CAUSES STRUCTURAL DAMAGE IN A HOME? Soil movement surrounding a home's foundation causes more than 80% of structural defects, and framing-related issues cause the remaining 20%. 20% 1 6 WHY DO BUILDERS NEED STRUCTURAL WARRANTIES? 1. Make Handling Complaints Simpler 2. Save Time 3. Provides Confidence to Home Buyers 4. A Helpful Sales and Marketing Tool 5. It Makes Good Business Sense 6. Avoid Costly Litigation $$$ 7 FEATURES AND BENEFITS FOR HOMEOWNERS 1. Worry-free 2. Protection When It's Needed 3. Surrounding Components Are Covered 4. Warranty Administration 5. Avoid Costly Litigation SOLD STRUCTURAL WARRANTY QUALITY OBLIGATION 8 COSMETIC DAMAGES, DROUGHT AND LINTELS INCLUDED 2-10 HBW offers the most comprehensive coverage of any warranty company. HOW 2-10 HBW STANDS OUT FROM THE COMPETITION MOVEMENT 9 APPLICATION PROCESS By visiting 2-10.com or calling 800.488.8844 or email 210hbw@2-10.com HOW CAN BUILDERS PROVIDE A 2-10 HBW INSURANCE-BACKED STRUCTURAL WARRANTY 10 WHY SHOULD A HOME BUYER PURCHASE FROM A 2-10 HBW BUILDER? The biggest advantage to buying a home from a 2-10 HBW builder member is in the quality of their craftsmanship and their ability to provide the best new home structural warranty. A home buyer can know that the construction standards are defined and there is a warranty insurer to stand behind the builder's promise. MOST COMPREHENSIVE NOT EVERY BUILDER QUALIFIES COVER MORE DAMAGE 18 master builder SPRING 2018

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