Top 3 benefits of warranty coverage for builders

It’s simple: Every new home is a huge investment. That’s true for the homeowner and the home builder.

As a construction professional, you know that mistakes happen despite your team’s best efforts and intentions. It’s these little, itsy-bitsy oopsies that can turn any investment into a bottom-line draining expense.

That’s why the best, most boss builders do all they can to protect themselves – and their companies. The way to do that is simple, too. The solution is warranty coverage. So, what is structural warranty coverage? It’s an important risk management tool that provides a written agreement between the builder and homeowner and clearly defines coverage as well as sets expectations.

As a home builder, you’re responsible for the integrity of any and all your projects for a period of time. Structural warranties provide you enormous protection for a small investment. It’s peace of mind. Period.

So why a warranty? Sure, they reduce financial liability, but it goes beyond that. Way beyond. Here are the top three benefits of warranty coverage for builders:

1) Protects your profits

All it takes is a collapsed column to buckle your company’s finances. In fact, structural distress on average results in $47,000 to $113,000 of repairs. Per the National Association of Home Builders, even a homeowner callback costs $476 on average. Gulp.

That’s why structural warranties for builders just make good business sense. An insurance-backed warranty insulates the builder from risk of paying those $47,000 to $113,000 in fixes. So, what do warranties cover? The short answer: A lot. The long answer: It depends on the plan.

Home builders have many options when choosing a warranty. Some examples of potential offerings include:

• 1-year workmanship warranty: Establishes standards applicable to the fit, finish and materials used in the construction of a new home.
• 2-year distribution systems warranty: Sets expectations for a home’s electrical, plumbing and mechanical systems, including the wiring, piping and ductwork.
• 10-year structural warranty: Addresses the designated load-bearing elements of a home if problems arise with roof framing systems, load-bearing walls, beams, columns, foundation systems, etc.

2) Doubles as a sales tool

You want to focus on what you do best – building great homes and growing your business. Warranty coverage helps you do both.

Just as potential clients should want to hire you because you use cutting-edge tech like Buildertrend, the same could be said of warranties. They simply and truly improve the client experience.

Warranties provide third-party validation that your company does solid work that’s backed up even if the unimaginable occurs, advances your reputation with competitors and sets buyers’ worries at ease. When home buyers know their project is backed by a promise of reliability, they also know they’re hiring a builder they can truly trust.

Just imagine being able to say to leads … “If a structural failure happens, you’re protected. Breathe a sigh of relief because you’re covered for up to 10 years. We’ve got you.”

“You’re hired!” is sure to be the only response!

3) Saves you a ton of time (and stress)

Every builder could probably agree that there’s never enough time in the day to get everything done. Warranty coverage helps get back a few of those hours.

When a homeowner makes a phone call to complain of a structural issue, the warranty company will handle this for the 10-year duration of each warranty.

And that’s just the beginning. The warranty company then helps builders conciliate claims, too. You’ll be notified of the grievance, and then the warranty’s insurer may perform an investigation, prepare a report and recommend repairs. But you won’t have to manage any of it. With coverage, you’ll know your clearly defined responsibilities, reach a resolution quicker and avoid potentially months of costly litigation.

Less (or no!) legal stress and phone calls from angry clients? Yep, we thought you’d love the sound of that.

Get top tech to go with your warranty

If you’re protecting your business and easing the minds of homeowners by offering a warranty, you should also be using the best construction tech in the industry. Give your clients peace of mind and the promise of transparency. To learn more, schedule a demo today.