What is a  1 2 10 Warranty?

A 1-2-10 Builder Warranty is a comprehensive home warranty program that provides several levels of coverage over a 10-year period. Here’s a breakdown of the coverage:

  • 1-Year Workmanship and Materials Warranty: For one year from the effective date of the warranty, the warranty covers defects in workmanship and materials. This typically includes items such as paint, drywall, flooring, trim, and other components that are part of the home’s finish work.
  • 2-Year Systems Warranty: For two years from the effective date of the warranty, the warranty extends to cover defects in the home’s major systems, such as plumbing, electrical wiring, and HVAC (heating, ventilation, and air conditioning) systems. This coverage focuses on the vital elements that ensure the home’s functionality and livability.
  • 10-Year Structural Warranty: The structural warranty provides ten years of  protection against Major Structural Defects as outlined in the applicable warranty. This cover extends to the home’s foundation, load-bearing walls, beams, and other load bearing components that affect the home’s integrity.

Why is a 1-2-10 Builder Warranty valuable?

  • Homebuyer Assurance: Provides peace of mind to homeowners by offering protection over an extended period, which can be a powerful selling point.
  • Risk Mitigation for Builders: By offering this warranty, builders can reduce their long-term liability by insuring against costly repairs and reducing litigation costs.
  • Insurance-Backed Security: The warranty is backed by a third-party insurance company, in which claims are handled professionally and promptly.

This warranty structure helps protect both the builder and the homeowner, making it a key feature in new home construction.

Why should I use this warranty?

  • Sales Tool: Homebuyers appreciate that an insurance-backed, third-party company stands behind the house and the builder. This can increase buyer confidence and act as a powerful sales tool.
  • Liability Protection: The warranty provides an extra layer of liability protection. Homebuyers agree to resolve disputes through arbitration, and there is a written set of standards defining builder responsibilities for the first and second years.
  • Insurance Benefits: Some General Liability carriers require the warranty in exchange for lower premiums, while others may offer a discount if the warranty is provided. Often times, a General Liability Policy may contain an exclusion for soil movement claims.

How are StrucSure 1-2-10 Warranties priced?

StrucSure Home Warranty, LLC (“StrucSure”) understands the economic pressures and challenges facing the homebuilding industry. To remain competitive, our warranty pricing is strategically structured to provide cost-effective solutions for builders. Here’s how we achieve this:

  • Efficient Overhead Management: We closely manage our overhead costs, enabling us to price our warranties lower than many competitors while maintaining high service quality.
  • Risk Retention Group, a RRG: In 2001, StrucSure established a Risk Retention Group, Golden Insurance Company, a RRG (“GIC”).  GIC insures your warranty obligations under the Program and risks at a more competitive rate.
  • Effective Claims Management: We timely and fairly investigate and manage claims, helping to prevent claims from escalating into costly arbitration or litigation, which keeps  overall costs lower.
  • Underwriting Management: We have a dedicated Underwriting Department for review of construction plans and engineering reports to assist in quality control of a construction project. This helps in reducing claims and maintaining a competitively priced rate for the warranty.

Can StrucSure customize pricing based on my specific needs?

Yes! Whether you’re a large volume builder seeking volume pricing, a builder interested in sharing risk to reduce warranty costs, or a builder looking for flat-rate pricing or a hybrid approach, StrucSure can develop a pricing structure tailored to your risk management, budgeting, and financial needs.

When does coverage under a StrucSure Home Warranty begin?

Unlike some warranty companies that may delay coverage or have waiting periods, StrucSure Home Warranties begin on Day 1 of closing. This means that homeowners are protected from the very moment they take ownership of their new home, providing immediate peace of mind. For example, if a Major Structural Defect were to arise within the first your of  closing on the home, the warranty would already be in effect, allowing for a quick and efficient resolution.

Does StrucSure Home Warranty cover soil movement and settlement?

Yes, StrucSure Home Warranties include coverage for soil movement and settlement, which are common causes of structural damage in homes. Many General Liability carries may exclude coverage for foundation damage caused by soil movement or settlement. The warranty provides coverage for both foundation repairs and resulting distress to the home. This provides , liability protecting for the builder. In turn, the homeowner obtains repairs to the home..

Do I have to cover all the homes I build with a warranty?

Some warranty companies require builders to enroll every home constructed into the warranty program. However, StrucSure has no such requirement, other than multi-family buildings. Builders have the flexibility to choose which homes they want to cover, giving them more control over their projects and costs.

It’s important to read all the terms of any warranty to understand the obligations and restrictions. StrucSure’s flexible approach allows you to make the best decisions for your business without being locked into covering every home you build.

What pricing and program options do you offer?

We provide Flexible Pricing and Programs tailored to your needs, including our 1/2/10, 1/10, or 10-Year Only plans, with no obligation to extend your 2nd-year warranty unless you opt to do so.

How do your cost-saving options work?

Say goodbye to financial worries with our Cost-Saving Options, including competitive rates, flat rates, deductible programs, and shared risk models, all designed to save you money.

What is First Call Warranty Service Program™?

Opt for our optional program and let us handle customer calls and risks with First Call Customer Care, allowing you and your construction teams to focus solely on building dream homes.

What is the 10-Year Build-to-Rent (BTR) Warranty Program?

The BTR warranty program is a comprehensive solution designed to transfer long-term repair liabilities for major structural defects to a financially secure third party. It offers protection for homebuilders, developers, property owners, managers, and investors, ensuring confidence for both current investors and future buyers.

Who is this program for?

  • The program is ideal for homebuilders, developers, property owners, managers, and investors involved in Build-to-Rent projects. It supports various business models and provides protection for tenant-occupied properties.

What does the BTR warranty cover?

  • The BTR warranty provides a 10-year structural warranty covering major structural defects. It helps safeguard against costly repairs and ensures long-term protection for investment properties.

Is the BTR warranty transferable?

  • Yes, the 10-year BTR warranty is fully transferable. This feature makes the property more attractive to individual buyers or investors by including a resale-ready warranty, which adds value and peace of mind.

How does the BTR warranty program benefit investors and property owners?

  • The program simplifies investment property protection by offering an all-in-one solution that includes risk management and asset protection. It sets clear expectations upfront and provides long-term security, making your investment more appealing to potential buyers or tenants.

Why choose StrucSure Home Warranty for BTR coverage?

  • StrucSure Home Warranty is an industry leader with a proven track record. By offering their BTR warranty, you can enhance your market offering and provide assurance to buyers and investors with trusted, reliable coverage.

How does this program support my business model?

  • Regardless of your business model, the BTR warranty helps manage risk, protect assets, and increase the appeal of your properties. It supports you before and after the sale, ensuring a secure investment for years to come.

Are your warranties insurance-backed?

In addition to GIC providing insurance backing for the warranty,  Lloyd’s of London provides reinsurance backing the warranty as well. Lloyd’s of London is one of the oldest, largest, and strongest A+ rated carriers in the world. Reinsurance provides additional layer of protection, confidence, and trust in our warranty.

How easy is the enrollment process?

Our Home Enrollment process is quick and easy with our online enrollment, saving you time and effort.

How do you ensure streamlined communication?

Our online homeowner and builder portal ensure streamlined communication and reporting, making your experience hassle-free.   Also, you can always reach out to a real person for assistance.

What kind of local support do you offer?

With knowledgeable local representation at your service, we’re here to provide Local Support every step of the way.

What is your Customer Experience Pledge?

We take customer satisfaction and your experience with us seriously and it’s our goal to not only provide you with the best risk management products available, but to make working with us easy and efficient.  If for any reason we fail to live up to any aspect of our pledge, please e-mail info@strucsure.com and we will investigate the situation and remedy it.

Do you offer any extended coverage options?

Yes, we offer  other warranty products such as our 1-2-5-10-Year Pool Warranty and 2-5 Year New Home Service Agreement programs, offering even more comprehensive coverage for your projects.

What is Builder’s Risk Insurance?

Builder’s Risk Insurance is a specialized type of property insurance that provides coverage for buildings and structures under construction. It protects against property damage or loss due to risks such as fire, theft, vandalism, and certain natural disasters,  and covers the cost to rebuild the structure to the same point it was at before the loss. Request a quick and easy rate quote!

What does Builder’s Risk Insurance cover?

Builder’s Risk Insurance typically covers the structure itself, along with materials, equipment, and supplies used in construction, whether on-site, in transit, or temporarily stored elsewhere. Coverage may also extend to labor costs, temporary structures, profit and even landscaping.

Who needs Builder’s Risk Insurance?

Builder’s Risk Insurance is essential for anyone involved in a construction project, including builders, general contractors, developers, and property owners. It helps protect against unforeseen losses that could lead to costly delays or financial setbacks.   It is customarily required by banks and loan companies to protect their interest in the loan on the construction.

How long does Builder’s Risk Insurance coverage last?

Coverage typically lasts for the duration of the construction project, from the start date until the project is completed and ready for use or occupancy. Extensions can be added if the project timeline is longer than initially anticipated.

What are the benefits of Builder’s Risk Insurance?

  • Financial Protection: Protects against unexpected losses that can disrupt construction projects.
  • Customizable Coverage: Policies can be tailored to meet the specific needs of the project and include extra coverages such as flood, earthquake, profits and others.
  • Peace of Mind: Ensures that the builder, contractor, or property owner won’t bear the full financial burden if something goes wrong during construction.

How does Builder’s Risk Insurance differ from General Liability Insurance?

Builder’s Risk Insurance specifically covers property damage or loss during construction, while General Liability Insurance covers bodily injury, property damage, and legal expenses resulting from accidents or negligence on the construction site. Both types of insurance are crucial for comprehensive protection during a construction project.

How do Home Warranties and General Liability Insurance differ?

  • Purpose:Home warranties cover repair/replacement of home components, while General Liability Insurance covers legal claims from third-party injuries or property damage.
  • Coverage Scope:Warranties focus on specific home systems and defects; General Liability Insurance covers broader risks, but may not always cover construction defects.
  • Benefits:Warranties protect builders from repair claims and maintain home functionality. General Liability Insurance may provide a defense in a lawsuit.

Which coverage do I need?

  • Home warranties enhance buyer confidence and protect against expensive repairs, while General Liability Insurance may provide a defense in a lawsuit or arbitration proceeding but may not always provide coverage for construction defects.

Why combine both types of coverage?

  • A combination offers comprehensive protection, ensuring your projects and financial interests are secure from both repair costs and legal claims. Both types of products provides a more comprehensive protection in managing risk.

What is covered by each program type?

A 1-2-10 home warranty typically covers workmanship and materials defects related to:

  • Paint
  • Drywall
  • Improper window or door installation
  • Cracking or splitting wood
  • Stucco
  • Trim
  • Landscaping materials (e.g., sidewalks, patios, decks)

For longer periods of time, home warranties typically cover defects related to:

  • HVAC systems
  • Electrical systems
  • Plumbing systems
  • And most importantly – Major structural defects including damaged roofs, foundations, floors, and load-bearing elements, such as rafters, beams and columns.

General liability insurance typically covers:

  • Bodily injury to others (e.g., a subcontractor or visitor is injured on your job site)
  • Property damage to others (e.g., construction activities cause damage to a neighboring property)
  • Legal fees and court costs if you’re sued
  • Medical payments for injured parties
  • Long term construction defect liabilities