Structural Warranties: Understanding What They Are and Why They Matter

Couple with realtor signing mortgage contract

What are Structural Warranties?

A structural warranty, also known as latent defects insurance, is a type of insurance policy designed to protect investors and homeowners from underlying structural defects that may arise after building work completion. Under California Law, the builder must provide a limited written warranty on the quality of completion of cabinets, flooring, mirrors, walls, countertops, and paint finishes – inside and out. It covers the foundation systems, concrete or strip footings, load-bearing brickwork, structural timbers and steel in-wall or roof framing.

Why do I need a structural warranty?Worker, Inspector is check, house inspect, audit, problem point out, advice with checklist and pointing new building with customer or client. Inspection and engineering concept

You want your luxury dream home to be aesthetically pleasing but also sound and durable. When moving into your newly built luxury home, all might seem well, but structural defects can be made evident any time after the construction work finishes. It is, therefore, advisable to have a structural warranty of at least ten years to cover the cost of fixing any issues that may arise.

Mortgage lenders require a structural warranty to sign off on a mortgage. If it is in place, the property sale will be completed on time, even though selling a house under ten years old will be challenging.

A structural warranty offers the following to a homeowner:

  • Quality Assurance: A reputable builder willing to provide a structural warranty is confident in the quality of their work. The structural warranty reflects the quality of work and the lasting construction quality. It ensures the standard of work the contractor delivers is of excellent quality.
  • Long-Term Protection: A structural warranty extends coverage of structural issues experienced due to weather, soil conditions, and settling over time. This warranty gives the homeowner peace of mind that he will be covered and have the backup support of the contractor if anything goes wrong.
  • Legal Protection: Structural defects can lead to disputes between contractors and homeowners. However, the process of a claim and repair can be streamlined with a structural warranty in place. It provides the framework for resolving the issues without lengthy and costly legal battles.

Selecting the Right Structural WarrantiesMaking sure wall is straight

California has several contractor warranties – one-year, four-year, and ten-year warranties. Before signing a structural warranty, you must know what protection they offer, the obligations, and the construction quality that is covered.
Other factors to consider:

  • The Warranty Provider Reputation: Read reviews about the company providing the warranty, ask for references, and ensure they fulfil their warranty obligations.
  • Coverage Detail: Carefully review what structural coverage is included and excluded.
  • Transferability: Check if the warranty can be transferred if you sell your home.
  • Additional Coverage: Consider the extra cost with additional coverage, such as water infiltration or structural design effects.
  • Duration: Verify the warranty time, if it can be extended or renewed, and the cost.

There are different requirements for warranties in California.

  • One-Year Warranty: This warranty covers craft and material. It assures the homeowner that the project will remain defect-free for a year. It includes aesthetic and minor structural issues. It excludes wear and tear, misuse, and homeowner-supplied materials.
  • Four-Year Warranty: This warranty safeguards the homeowner against hidden structural defects and internal system issues such as plumbing and sewer systems.
  • Ten-Year Warranty: This warranty covers the construction durability. Load-bearing components that ensure long-term structural stability are covered.

This article briefly overviews structural warranties and why they are essential when building your luxury home. Contact Trevino Construction for expert advice and guidance to protect your investment in your luxury home for many years.