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Bank Owned Warranty Product
In today's market, banks are transferring title on property reclaimed from failing or failed builders. Many banks may be assuming additional liability when they sell a newly constructed home even if they did not actively participate in the construction. The bank, as the seller, can be held liable for construction defects up to the statute of repose, which in some states is up to 10 years.
It is important for banks to understand the exposure to potential liability and protect themselves. Professional Warranty has developed a product specifically for banks who have found themselves to be the seller of new homes. This product allows banks to sell these properties with a warranty that is competitive with what a builder would offer and gives comfort and protection to the prospective homeowner.
KEY FEATURES OF THE WARRANTY:
| - | HUD approved for FHA/VA financing
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| - | 1 year coverage of workmanship
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| - | 2 year coverage of systems
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| - | 10 year structural coverage
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| - | 1st and 2nd year items are handled by the builder (defined as whatever entity is passing original title) - year 3 to 10 coverage is provided by the insurer
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| - | Specific objective tolerances provided in the warranty to determine defects vs. vague or subjective language in competing products
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| - | Drop down coverage should the builder fail, the insurer will cover builder obligations
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| - | Binding arbitration feature-dramatically reduces claim severity by avoiding expensive litigation
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Our Products
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Company Information
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4443 Brookfield Corporate Drive, Suite 300
Chantilly, VA 20151
Phone: 800-850-2799
Fax: 800-851-2799
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