Let’s face it… litigation has become the preferred method of dispute resolution in construction defect cases around the country, and because lawsuits are “easy wins,” lawyers and homeowners are enticed to take action. As a result, industry experts estimate up to 10% of a new home’s selling price is directly relatable to construction defect litigation.
Builders can help manage their liabilities and protect themselves against legal risks by including a new-home warranty on every home they sell. A warranty from StrucSure Home Warranty helps reduce the possibility you will end up in the courthouse by including a mandatory mediation and arbitration clause, providing an opportunity for an issue to be resolved before it turns into legal action. In addition, our warranty requires the homeowner give you notice of a defect (and also gives you the right to inspect and repair the home), reducing the likelihood of a legal issue. By including written performance standards, the possibility for confusion or subjectivity about what is and isn’t covered is removed.
In addition to provisions designed to keep you and your homebuyer out of the courthouse, our warranty also provides the following protection:
- Prohibits class action lawsuits against the builder under the warranty,
- Prohibits awards of punitive damages, money damages, or attorney’s fees under express warranty claims.
- Disincentivizes attorneys from targeting the builder since financial awards are not available under express warranty claims.
Remember that no form of insurance or warranty can guarantee that you will not be sued for a construction defect; however, having third-party warranty protection offers additional protection and peace-of-mind.