If you’re ever in charge of a construction project, you should ensure you have the proper insurance coverage to protect you against any unforeseen circumstances. Whether it’s because of poor design, low-quality materials or bad workmanship, structural issues can arise at any time.
What happens, though, if the construction project has been completed and doesn’t have any insurance policy? That’s where ABC+ Warranty can help with a completed house warranty.
Continue reading to find out everything there is to know about completed house warranties.
What is a completed house warranty?
A completed house warranty is a structural warranty that’s issued after the property’s construction has been completed. Issuing a retrospective warranty is a much more costly option compared to obtaining a structural warranty from the start of a construction project.
When a completed house warranty is secured on a property following a construction project’s completion, the document issued is the same as if it had been obtained from the beginning.
The increased price that comes with this type of warranty is due to the insurance company taking a higher degree of risk when underwriting the coverage.
What’s included in a completed house warranty?
A completed house warranty is separated into two parts. The first two years of coverage are called the defects insurance period, and the second period – eight years – is the structural insurance period.
Defects insurance period
The defects insurance period of a completed house warranty holds the contractor/developer liable for any structural issues with the property. For example, if – in the first two years of coverage – the homeowner experiences problems like leaky windows or the central heating system not working, the person/company responsible for these issues because of either poor design, workmanship or materials, are held liable to fix it.
Structural insurance period
The second part of a completed house warranty exists from years three to 10. This section holds the property developer liable for major structural issues with the property.
This includes problems with the:
- Foundations
- Roof
- Chimney
- Ceiling
- Load-bearing parts of the building
Any smaller defect, like the leaky window frame, is now the responsibility of the homeowner.
What’s not included in a completed house warranty?
There are a handful of situations that are not covered by a completed house warranty, including standard wear and tear, damage caused by extreme weather conditions and poor maintenance.
Why choose ABC+ Warranty for your completed house warranty?
If you’ve recently completed a construction project and you’re seeking an insurance policy that will provide 10-year coverage for structural defects, you’re in luck.
ABC+ Warranty offers a superb coverage policy that protects the homeowner and ensures all construction issues are resolved without hurting their pockets.
Frequently Asked Questions (FAQs) – Should I Obtain a Completed House Warranty?
1. What is a completed house warranty, and what does it cover?
A completed house warranty is a type of protection plan that covers certain structural elements and systems of a newly built or existing home. Coverage typically includes major structural defects, plumbing, electrical systems, heating and cooling units, and sometimes appliances, depending on the policy. It provides financial protection against unexpected repair costs after purchasing a home.
2. Is a completed house warranty worth it?
It depends on your home’s age, condition, and your willingness to handle repair costs. If your home is newly built, a builder’s warranty may already cover defects for a certain period. However, for older homes or those without an existing warranty, purchasing one can offer peace of mind by covering expensive repairs or replacements. Always compare costs, coverage limits, and exclusions before deciding.
3. How do I choose the right house warranty provider?
To select a reliable warranty provider, research companies with good reputations, read customer reviews, and compare coverage plans. Look for transparency in terms, coverage limits, and exclusions. Additionally, ensure the provider offers a responsive claims process and quality contractor networks to avoid issues when filing a claim.