September 16, 2021 at 11:00am | Danesha Ritzberg






When buying or selling a home, the decision of whether to invest in a home warranty can be a tough one. And warranties vary between what you look for with a resale home versus a new home. We’ll outline the differences!

What does a home warranty cover for a resale home?


Your resale of the gently used home won’t come with a builder’s warranty. The seller might offer a warranty, but in this hot seller’s market, that is also unlikely. So, here are few variables to consider when shopping for a home warranty. The most important thing to understand is what the home warranty covers before committing to it. The next crucial part is understanding the difference between homeowner’s insurance and a home warranty.

Home warranties are service contracts between homeowners and a home warranty company to offer discounted repairs and replacement of mechanical components and appliances should any problems arise. Home warranty companies arrange for a repair person to assist, and if unsolved, the company provides a replacement. Homeowner’s insurance usually covers damage occurring from fire, smoke, theft, or vandalism as well as weather-related damage.

A home warranty is a good idea if you are purchasing an older home with aging systems and appliances. If you are a seller, especially of a home with aging systems and appliances, a home warranty could help give your property a competitive edge, as the warranty would extend to the new owners. Before you sign up for a warranty product covers as well as the process for getting a repair or replacement. It’s important to note that if a system or appliance breaks down, causing additional damages to your home, the warranty will not cover those additional damages – only the repair or replacement of the appliance or system will be covered by the warranty. The example in the article is a busted plumbing unit. The home warranty may cover the repair of the unit, but not any damages caused by flooding – like water or mold removal or replacing a broken window or rotten wood.

Homeowners have the option to purchase a systems and appliance warranty from 2-10 Home Buyers Warranty for added security. This is beneficial for homeowners acquiring older homes with declining appliances and systems. Sellers will also benefit from the assurance because it provides a competitive edge when selling for an added peace of mind for potential buyers. It is important to note that if an appliance or system breaks down and causes additional damage to the home, the warranty will not cover these damages and only cover repairs or replacement if needed.

What does a new construction warranty cover?


Also known as a structural warranty or builders’ warranty, this warranty clarifies the standards between a builder and homebuyer for workmanship, distribution systems, and possible structural defects that may occur during the construction of a new home. This guarantee allows home buyers and builders to establish expectations for who is responsible for covered problems within the home.

If a homebuilder defaults on their responsibility to repair or solve a structural issue, the warranty company takes on the obligation. This offers protection to homeowners as well as validates the builder’s work through a third party.

In the case of the 2-10 Home Buyers Warranty (2-10 HBW), this is a 10-year insurance-backed warranty to protect homebuyers and builders against structural damage or failure of load-bearing elements of the home. This includes:

  • Floor framing
  • Columns
  • Beams, girders, and lintels
  • Footings
  • Foundation systems
  • Load-bearing walls and partitions
  • Roof framing systems

If any of these elements fail and the home is protected by 2-10 HBW, then neither the builder nor the homeowner is responsible for making the repairs. And these repairs can be quite costly, ranging from $42,000 to $113,000 depending on the damage, the location of the home, etc.

There is a new construction warranty from 2-10 Home Buyers Warranty (2-10 HBW) that addresses problems that may arise during the construction of a home. The assurance is exclusive to 2-10 HBW Builder Members at the time of sale for a new home.

Get a quote for a new construction warranty or learn more about the 2-10 new construction warranty by visiting the 2-10 HBW website.



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