Home Owners Warranty Products

While technically not insurance, Home Warranty Products offer important protection against disputes arising out of allegedly defective construction. Home Warranty Products are important because they allow the homebuilder to circumvent implied warranties (under state law) in exchange for a written warranty (which is specified in the Home Warranty Contract). They also force disputes into binding arbitration, which is generally much faster and less expensive than the traditional legal process. Attorneys hate arbitration because their opportunity to earn large legal fees is reduced.

Most Home Warranty Products provide the following protection periods:

  • Workmanship 1 year
  • Major Mechanical Systems 2 years
  • Structural Defects 10 Years

New Home Warranties may even provide coverage for certain kinds of claims that might not be covered by some General Liability policies such as “soil movement” which can be caused by hydrostatic pressure.