A structural home warranty could save you

thousands of dollars.

FLORIDA CASE STUDY

By 2-10 Home Buyers Warranty®

In Gainesville, FL ...

a builder enrolled a home in the 2-10 Home Buyers Warranty® (2-10 HBW) Structural Warranty program in November of 2000.

Signs of structural defects were first observed just three months later in January of 2001.

A claim was made in March of 2004.The house had cracking throughout the walls and uneven flooring in the kitchen and living room.

The cracking pattern observed at this home was caused by differential, or uneven, settlement of the soil.

In this case the differential settlement was caused by the following conditions: • Loose sand or muck (naturally

occurring or due to improper site preparation procedures during construction)

• Shrink-swell clay

The primary cause for the cracking that was occurring at the site was

the presence of loose and variable subsoil (sand and muck) underneath the foundation,

which could have been prevented by proper compaction.

TOP SOIL

PARENT MATERIAL

BEDROCK

SUB SOIL

Shrink-swell clay was also encountered

during the investigation.

Cracking caused by shrink-swell clay occurs over a period of time involving dry and wet seasonal changes. In this situation, the shrink-swell was being escalated

by the presence of loose soil above it.

It was determined that the cracking observed at this home was caused by a combination of loose and variable subgrade material along with the shrink-swell clay below the foundation.

What is shrink-swell?

A water table naturally moves up and down (fluctuates) in response to the amount of rain an area receives. If large amounts of rain cause the water table to be higher than usual, some types of subsurface clay may swell with resulting foundation damage. Drought may result in lowering of the water table causing some types of clays to shrink. This may also result in foundation damage such as cracking.

Source: Florida Department of Environmental ProtectionWaterponding

Soil rises

Evaportaion Soil shrinks

RAINY MONTHS DRIER MONTHS

How was this claim resolved for the homeowner of this Gainesville builder?

The warranty insurer paid approximately $74,000 for the repair of this structural claim*.

Pay To The Order Of

Amount

Gainesville Homeowner

Seventy four thousand dollars and

$74,000.00

Structural Claim2-10 Home Buyers Warranty

LONG LIVE HAPPY HOMES®

*Data collected from New Home Warranty Insurance Company.

0000

To remediate the problem it was recommended by the geoengineering inspector to support the load-bearing wall with a deep foundation going down at least 25 ft, bypassing the loose subsoil and shrink-swell layers. Once appropriately supported, the repairs to the cracks could then be completed.

SUB SOIL25 f

t

Structural warranty coverage:

• Insurance-backed coverage starts

day one of closing

• NO SOIL EXCLUSIONS• Third party insurance-backed warranty

• Reinsured by SwissRe, one of the world’s

largest reinsurers

2-10 HBW was able to protect this builder from an expensive claim because structural warranty coverage was in place.

Can your business survive a $74,000 structural defect?

Call today to find out how you can include a 2-10 HBW Structural Warranty on the homes you build.

855.523.6422