There are vast differences in companies who offer home building warranty insurance. They cover different types of problems and sometimes not others. Some companies offer a variety of home building warranty insurance packages, which vary in what they cover, while other companies offer a single standard warranty. Warranty companies also vary in their screening processes. It is quite an honor for your builder to be selected by some warranty companies, who are very selective about the builders they accept. With some other warranty companies, it’s just a matter of paying for the insurance. It is important to note that some warranties especially in the UK are only applicable if the builder dies or just disappears. Other than that, he is responsible for his own mistakes no matter how big.
Home Building Warranty Insurance Background
In the 1970s Congress suggested that builders escrow 10% of the total price of each home they built in order to cover structural defects. This proved to be an impossible hardship on builders, who simply do not earn enough to be able to save what amounts to over one third of their gross profits. At that time many insurance companies, and other companies invented a new kind of company, called the Home Warranty Company, and a new product called the 10 year structural warranty.
Home Building Warranty Insurance Companies: Why it Matters Which One
It is important, not only to know that your builder is offering a warranty and what it covers, but also to know about the company who issues the warranty. Not all home building warranty insurance companies are equal in integrity, or in their requirements. Be sure to research the warranties of all the builders you are seriously considering. The warranty and warranty company represent an important consideration when choosing between bids.
Home Building Warranty Insurance: Selective Membership
There are several warranty companies that are quite impressive, but the Quality Builders Warranty has come to mean something much more than just a 10 year warranty. They cater to quality builders and are especially selective in their application process. This company is so accurate in their selection, and their confidence in their clientele so well placed that their loss ratio in the industry for the past 27 years. Just being able to issue a warranty from this company means these well proven experts are certain you will not have a problem with your home. In the event you do, it will be handled promptly, by their fast and efficient resolution process. It is not at all their policy to litigate or arbitrate, they simply resolve the issue. They have so few complaints that it is not a problem to pay the few they do have. Just like the quality home builders they represent, they value good relationships with you, the builder’s customer.
Another company accepts only bonded builders, and is also selective on the basis of work ethic and reputation. They claim a 95% non litigation resolution rate, and offer a 10 year structural defect warranty. They also have a long history, dating back to 1989. There are other selective membership warranty companies as well. Be sure to research your warranty to find out what criteria your warranty company required from your builder.
Home Building Warranty Insurance: Non-Selective Warranties
Many structural defect warranty companies do not screen builders. These companies do at least generally pay for any structural damages to your home due to building mistakes. It does pay to investigate these companies to learn more about them, especially their speed of resolution and also their percentage of issues resolved out of court. The more quickly and generously they have solved complaints in the past, without involving courts, the more likely your own complaints are to be resolved.
Home Building Warranty Insurance: Warranties You Can Buy
There are warranties that home buyers and current home owners can purchase to protect themselves from builder mistakes and the mistakes of subsequent workmen and subcontractors as well. These types of warranties also come in handy for sellers and buyers when homes are sold. Many of these companies also offer warranties for various home maintenance professionals on their work. These companies are not particularly selective, and some are not selective at all, but these warranties do pay off, at least in most cases. These companies do give buyers a recourse if their homebuilder is too small a company to offer home building warranty insurance.