A 2-10 warranty is another name for a new construction home warranty. It is often used interchangeably with ‘builders warranty’ or ‘structural warranty’, and refers to a warranty that provides workmanship, distribution systems and structural coverage for builders and homeowners on newly constructed homes.
A Home Builders Warranty is a structural warranty that provides coverage for workmanship, distribution systems and structural defects on new construction.
The term ‘structural warranty’ and ‘builder’s warranty’ are often used interchangeably, and refer to the warranty coverage builders provide on the homes they build. Strictly speaking, a structural warranty provides coverage and guidelines for the structural components of a new home, whereas a builder’s warranty provides coverage and guidelines for the workmanship and distribution systems as well as the structural components. Nearly all structural warranty programs include coverage options for the workmanship and distribution systems, which is why the terms ‘structural warranty’ and ‘builder’s warranty’ are often considered synonymous. The best protection for home builders AND new home buyers is a third-party warranty that provides guidelines and coverage for all 3 major areas: workmanship, distribution systems and structural components.
Offering a structural warranty from a third-party provider is the smartest way a builder can protect themselves and their homeowners. Independent, third-party neutrality is a key element that courts look at when evaluating disputes. If a builder is utilizing a warranty program they created themselves, it may be construed as “self-serving” and actually cause more harm if a dispute arises.