Important things you need to know about the builder’s warranty insurance
A newly built house might look very strong, very promising, and well-designed which virtually makes it up as your dream house, however, this does not mean that it is not susceptible to any damages that might occur unexpectedly.
One of the most important things that home buyers have to secure is warranty insurance to protect their investment and provide them quick response and repairs if there are any untoward accidents that are caused or the result of the contractor’s negligence during the construction of the house.
A builder’s warranty insurance is applied if you are purchasing a house to cover everything by covering the homeowner’s loss of deposit, the incomplete or the defective construction of the building, or if the builder dies or disappears or maybe becomes insolvent.
A builder’s warranty insurance, before you proceed with the rest of the article, is a type of insurance that is covered by the builder or by a third-party warranty or insurance company that usually comes in two different parts, the workmanship and materials warranty, and the structural warranty. Usually, the structural warranty protection is the one that covers for a longer period of time compared to the workmanship and materials protection.
If you hire a contractor to build your house, you should be remembering the importance of this type of insurance and here are some of the best fact about the builder’s warranty insurance from an article compiled by Builders Warranty Insurance Australia.
The warranty for a newly constructed house generally provide a limited coverage on workmanship and the materials relating to the various components of the house like the ventilation, the air conditioning, the plumbing, electrical systems, the window installations, and the heating for a specific period of time while these warranties are very usual to define how the repairs will commence.
Usually, the period of the coverage is varied depending on the component of the house covered by the insurance. The coverage is provided during the first year which will pay up for the cost of the components that are used to repair the damaged sections of the house. Typically, this insurance covers household appliances, cracks in the wall, bricks, and tiles, and the components under a warranty of the manufacturer.
In order to claim for the coverage of the warranty insurance, initially, you should read the contract thoroughly, next identify the components that need to be covered, and file your claim appropriately in your warranty, and apply your request for repair in a letter. Ask for a return receipt for record keeping and as proof if there are any disputes with the contractor.
This can be resolved through the mediation of the disputed warranty claims and will be done through mandatory binding arbitration. A neutral third party will serve as a mediator during the mediation to help the homeowner and the builder to resolve the problem by diplomatic discussion, however, the agreement between both camps depend on them, so if the mediation fails, it is likely that the homeowner will be submitting an arbitration instead of proceeding to the court, instead the arbitrator will be the one to make the decision to finally resolve the problem.