Purchase Home Warranty?

8 years ago

There is a home warranty through my builder which combines his in-house warranty + QBW (Quality Builders Warranty) under Liberty Mutual. Cost is $7,000 for a 2,300 sf home. I am skeptical of this because of the cost. Am not sure how the cost breakout between builder and 3rd party works, FYI.

My builder says he has QBW in case he dies or the business dissolves for whatever reason. Am I crazy for thinking that it is a ridiculous sum for a policy I probably never file a major claim on? Major being more than the cost of $7,000, which is the cost of the warranty policies. If something significant happens to the electrical/roof/structure/foundation/whatever, my homeowner's insurance should cover... Right?

Guess what I am asking is what would you do in my shoes?

Sort by:Oldest

Comments (4)

millworkman
8 years ago
Pass,. Home Warranty Companies are not worth it.
m v
Original Author
8 years ago
I feel the same way! But it would be good to know why you believe they are not worth it.
Related Professionals
Rolla Architects & Building Designers · Florence Architects & Building Designers · Hilton Head Island Architects & Building Designers · Fort Wayne Architects & Building Designers · Springfield Architects & Building Designers · Eugene Architects & Building Designers · Pensacola Design-Build Firms · Wichita Design-Build Firms · York Design-Build Firms · Norfolk Design-Build Firms · Watertown Design-Build Firms · El Dorado Home Builders · Austin Home Builders · Auburn Home Builders · Kankakee Home Builders
millworkman
8 years ago
"If something significant happens to the electrical/roof/structure/foundation/whatever, my homeowner's insurance should cover... "

And, read the list of what is not covered, who is to inspect and determine the level of repairs, who does the work, etc, etc.
lookintomyeyes83
8 years ago
last modified: 8 years ago
My perspective:

The New Home Warranty in Manitoba, Canada, where I live, is 5 years structural (eg 'shell') and 1 year everything else.

Why was it useful?

- When the building code stated that flashing requirements were minimal/nonexistent for flashing, the warranty company was able to 'enforce' that the work done (which technically met minimum code) was repaired such that the issues I'd raised were corrected. Ie, the warranty company can enforce workmanship where code doesn't.

- When the builder 'felt' that things didn't need to be fixed post-final-punchlist-walkthrough, I could provide my rationale and documentation to the warranty company, and have them decide if my concerns were valid, and force him to fix things, or compensate us for the problem.

- if I get another roof leak (we had 3 during our construction!!!), the builder has to fix it at his cost. If he disappears, or go bankrupt, the 3rd party warranty will have to fix it.

Also - my bank required a NHW as a condition of releasing the final funds. Until the builder submitted proof of registration with the NHW company, he wasn't eligible to receive his final payment. This is a good thing!

The above can easily exceed $7k in cost if something goes wrong. To me, its worth it.

We also found out mid-build that our builder was being taken to small claims court for poor-quality workmanship (and lost!). Again, it brought peace of mind.

We started off our build working with our builder for 1-2 years before commencing. We thought it would go easy-peasy. Then things went wrong, things got nasty, and it went downhill from there. The warranty is a GOOD thing.