Best Latent Defects Insurance Firms in USA
Non-sponsored, Expert Verified and Transparently Ranked Latent Defects Insurance Firms in USA
Published: December 29, 2025 | Verified by: Ted Scheiman & Rob Watts
Executive Summary
We analyzed 5 solutions. Top Recommendation: Insurance-Backed Structural Warranty (1-2-10) by 2-10 Home Buyers Warranty scored highest due to Production and mid-volume home builders seeking nationwide, insurance-backed risk transfer from day of closing, standardized dispute resolution, and a market-recognized warranty to enhance buyer confidence and sales..
Content Verification
Side-by-Side Comparison
| Feature | #1 Insurance-Backed Structural Warranty (1-2-10) (2-10 Home Buyers Warranty) | #2 Insurance-Backed Warranty (Professional Warranty Service Corporation (PWSC)) | #3 10-Year Home Builder Warranty (Quality Builders Warranty (QBW)) | #4 Home Warranty Products for Builders (Residential Warranty Company, LLC (RWC)) | #5 Swimming Pool 10-Year Warranty (StrucSure Home Warranty, LLC) |
|---|---|---|---|---|---|
| Best For | Production and mid-volume home builders seeking nationwide, insurance-backed risk transfer from day of closing, standardized dispute resolution, and a market-recognized warranty to enhance buyer confidence and sales. | Builders wanting third-party administration with insured risk transfer, clearer standards and tolerances for claims, and a marketing-ready 2-10 warranty brand without managing carrier relationships directly. | Established builders seeking a Liberty Mutual, backed structural warranty with clear scope, limited builder liability after two years, and administrative and marketing support to reinforce quality positioning. | Regional builders wanting customizable structural warranty choices, including upfront insurer responsibility for structural coverage, with online enrollment, transferable coverage, and administration that reduces disputes and limits builder liability exposure. | Home builders operating across the United States who want an insurance-backed structural warranty starting at closing, strong sales support benefits, and straightforward coverage for major load-bearing components. |
| Coverage Duration | 1-year workmanship; 2-year systems; 10-year structural. Coverage effective at closing. (2-10.com) | 1 year workmanship/materials; 2 years major systems (“inside the wall”); 10 years defined structural elements. Coverage begins at closing. (pwsc.com) (pwsc.com) | 10 years total: Year 1 workmanship/materials; Year 2 wiring, piping, and ductwork; Years 3, 10 major structural defects covered via insurer. Builder liable in years 1, 2; insurer responsible in years 3, 10. (qbwc.com) | 1-2-10 warranty: 1 year workmanship/materials; 2 years selected mechanical systems; 10 years major structural components (insurer-backed). Day One Full Coverage: structural insured from day 1 for the full 10 years. Structural-Only: 10-year structural coverage. (rwcwarranty.com) | 1 year: workmanship; 2 years: electrical, plumbing, and mechanical delivery systems; 5 years: plaster defects (osmotic blistering, spot etching, spalling, crazing, delamination); 10 years: major structural defects (physical damage to pool shell causing water loss). (strucsure.com) |
| Claims Handling Efficiency | 2-10 HBW advertises “the most responsive warranty administration department.” (2-10.com) Structural claims are investigated by licensed engineers; disputed claims go to binding arbitration, designed for swift resolution. (2-10.com) They handle high homeowner volumes (45, 000 callbacks/year) and report $300M in structural claim payouts, signals of capacity and throughput. (2-10.com) | Online-only claim submission with photo upload; optional FirstLink enables 24/7 filing, expert triage, and scheduling. Claims are evaluated against specific construction standards, with a defined process, mediation then arbitration, to resolve disputes faster and avoid litigation; arbitration carries an $80 flat filing fee. (pwsc.com) | Claims triaged by a live agent via email/phone; SOS/Coordinator reviews non‑emergency requests daily and assigns subcontractors; builders report auto‑acknowledgment and ~1‑business‑day responses; QBW Direct with Messenger speeds support; MSD claims use a dedicated form. (qbwc.com) | Dedicated Warranty Resolution Department; initial claim review in 2, 5 business days. Free mediation resolves ~95% of disputes, limiting arbitration. Claims can be submitted online with document uploads. (rwcwarranty.com) | Online claim submission. Adjuster response within 2 business days; claim/repair process may take up to 60 days. Claims dept hours: Mon, Fri, 8 a.m., 5 p.m. MST. (strucsure.com) |
| Insurance Backing Stability | Reinsured by Swiss Re and SCOR Re (combined surplus >$4B). 2-10 reports paying over $300M in structural defect claims. Liability for qualifying structural defects is transferred to the warranty insurer for the full 10 years. (2-10.com) | Backed by Steadfast Insurance Company (Zurich North America). (edgehomes.com) AM Best rates Steadfast A+ (Superior) with “aa” ICR, stable outlook. (businesswire.com) Insurer pays for specified structural defect repairs up to 10 years, and the warranty remains in force on resale. (pwsc.com) | Backed by Liberty Mutual, a nationally licensed carrier; years 3, 10 structural claims are paid by the insurer. (qbwc.com) Liberty Mutual holds an AM Best Financial Strength Rating of A (Excellent) with a stable outlook (affirmed Sep 2025), indicating strong capitalization and liquidity. (businesswire.com) | Insured by Western Pacific Mutual Insurance Company (RRG). A.M. Best A- (Excellent) rating (since 2001; stable outlook). WPMIC holds over $130M in surplus equity dedicated to warranty liabilities and insures only RWC/HOME members, limiting exposure and enhancing stability. (rwcwarranty.com) | Insurance-backed by Golden Insurance Company, RRG; reinsured by Lloyd’s of London (AM Best A+) and Four Points Re. (strucsure.com) Golden is a North Carolina, domiciled RRG, licensed since 2001 and writing in 44 states. (golden-insurance.strucsure.com) Note: AM Best downgraded Golden in 2018 and ratings were later withdrawn; Lloyd’s remains A+. (captiveinternational.com) |
Insurance-Backed Structural Warranty (1-2-10)
2-10 Home Buyers WarrantyCompany Information
Description
2-10 Home Buyers Warranty offers low-cost home warranty plans for homeowners that cover essential systems and appliances, providing peace of mind and budget protection.
What They Do
They provide home warranty services that help homeowners protect their budgets against unexpected repair costs for home systems and appliances.
Who They Serve
Homeowners, real estate professionals, builders, and service contractors.
Key Value Propositions
Customer Reviews
Ellen Bowman
Had a recent experience with a bathroom faucet and a leak. When I called to 10 they were very understanding of my need.
Lorie
I liked the technician and the promptness of the service!!
Target Customers
Industries Served
Contact Information
Key Pages
Summary
An insurance-backed structural warranty for new homes that transfers major structural defect risk from the builder to the insurer. Includes 1-year workmanship, 2-year systems, and 10-year structural coverage.
Detailed Comparison
Coverage Duration
Claims Handling Efficiency
Insurance Backing Stability
Insurance-Backed Warranty
Professional Warranty Service Corporation (PWSC)Company Information
Description
PWSC offers comprehensive home warranty solutions, protecting builders, homeowners, renters, and property managers by safeguarding their largest investments.
What They Do
Provide home warranty solutions to protect against appliance and system breakdowns.
Who They Serve
Builders, homeowners, renters, and property managers.
Key Value Propositions
Target Customers
Industries Served
Trusted By
Contact Information
Key Pages
Navigation Links
Summary
PWSC administers insured 2-10 warranties providing 10 years of protection against workmanship, materials, and structural defects with A-rated insurance backing. Includes specific building standards, claim handling, and dispute resolution.
Key Features
- A-rated insurance coverage (Zurich)
- Coverage for workmanship and materials (Year 1)
- Coverage for major systems ('inside the wall') (Years 1-2)
- Coverage for defined structural elements (Years 3-10)
- Express warranty with clear, measurable standards
- Flat-rate arbitration ($80 filing fee for homeowners)
- No homeowner deductible
- No start-up or annual renewal fees
- Defense coverage included
- Third-party expertise in claims review and administration
Key Benefits
- 10 years of insured protection for homeowners
- Boosts builder reputation and marketability
- Reduces builder risk through insurance-backed risk transfer
- Improves customer satisfaction with clear standards and education
- Dispute resolution process reduces litigation and escalated claims
- Warranty remains in place even if the home is sold, aiding resale
- No homeowner deductible or start-up/annual renewal fees
Who Is It For
- Home builders
- Property managers
- Insurance agents
- Homeowners (especially buyers of new construction homes)
2-10 Insured Warranties
PWSC’s 2-10 warranties offer 10 years of financial security and protection against workmanship, materials, and structural defects with A-rated insurance coverage.
Why It Works
- Marketability: 10-year insured builder’s warranty backed by A-rated insurance increases buyer confidence.
- Improve Customer Satisfaction: Construction experts educate homeowners and set expectations.
- Dispute Resolution Process: Express warranty sets clear expectations, leading to fewer escalated claims.
- Specific Standards: Claims examined against specific building standards and tolerances.
- Risk Transfer: Insurance provider covers specified structural defect repairs for up to 10 years; warranty remains if home is sold.
- Third-Party Expertise: Over 100 years of combined homebuilding expertise.
Tailored Solutions With Your Budget In Mind
- Specific Standards
- Real Insurance/ Risk Transfer
- Home Builder Expertise From A Neutral 3rd Party
What's Covered?
- Year 1: Workmanship And Materials
- Year 1-2: Major Systems: “Inside the Wall” Coverage
- Years 1-10: Defined Structural Elements
PWSC Insured Warranty Coverage
PWSC is the leading provider of new home warranty products and warranty administration services. Their mission is to administer the most rock-solid, comprehensive, easy to understand home warranty solutions available nationwide.
How We Compare
- A-Rated Insurance: Real, A-rated insurance policies from Zurich, naming the builder.
- Defense Coverage: Includes duty to defend.
- Clear Expectations: Warranty language includes clear and measurable standards.
- Flat-Rate Arbitration: Only $80 filing fee for homeowners.
- No Homeowner Deductible: No deductible for homeowners.
- No Start-Up Fees.
- No Annual Renewal Fees.
Talk To An Expert
Whether you are a builder, property manager, insurance agent, or homeowner, PWSC’s team of home experts is available to discuss your needs and help you find the right home warranty solution.
Resources
Supporting Resources
Detailed Comparison
Coverage Duration
Claims Handling Efficiency
Insurance Backing Stability
10-Year Home Builder Warranty
Quality Builders Warranty (QBW)Company Information
Description
QBW is the nation’s premier provider of 10-year new home warranties, backed by Liberty Mutual. They help builders offer superior products for discerning homebuyers and support them in managing their operations.
What They Do
Provide 10-year home builder warranties and support solutions for builders.
Who They Serve
Home builders in the USA and the homebuyers they serve.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Summary
Ten-year new home builder warranty program backed by Liberty Mutual. Builder liability applies in years 1, 2; insurer responsibility applies for major structural defects in years 3, 10.
Key Features
- 10-year coverage timeline
- Backed by Liberty Mutual, a national insurance carrier
- Clearly stated warranty standards for transparency
- Online administration via QBW Direct platform
- Integrated electronic communication with QBW Messenger
- Ability to manage multiple builder accounts
Key Benefits
- Limits builder's overall liability
- Increases buyer confidence
- Enhances builder's marketability
- Provides peace of mind to homeowners
- Warranty is automatically transferrable to subsequent buyers
Who Is It For
- Home builders seeking to provide warranty coverage for new home construction
- Builders who want to limit liability and enhance marketability
- Builders looking for a warranty program backed by a major national insurer
builder Home warranty Program
Quality Builders Warranty offers builders the 10-year new home warranties they need to provide their customers the peace of mind they deserve. Backed by Liberty Mutual, QBW is the only 10-year home warranty program backed by a national insurance carrier of this size.
QBW PARTNERS WITH BUILDERS TO PROTECT THEM AGAINST COSTLY HOMEOWNER REPAIRS
What is a Builder Warranty?
A builder warranty is different from a home warranty that’s purchased by a homeowner. Builder warranties apply to new home construction and usually cover any issues with materials, central in-home systems that were installed, workmanship, and other structural elements of the home. At QBW, our warranty standards use clearly stated language to ensure complete understanding of coverage between the customer and the builder. When it comes to limiting liability for the nation’s best builders, QBW’s nationally licensed insurance backing is the industry gold standard.
- Limit your overall liability
- Increase buyer confidence
- Enhance your marketability
The standard 10-year Warranty for Home Builders
Our 10-year warranty for home builders offers a comprehensive timeline of coverage.
- Year 1: Builder warrants the home against specified defects in workmanship and materials that are the result of non-conformity with QBW’s warranty standards, as well as any major structural defects as defined in the warranty.
- Year 2: Builder warrants the home against specified defects in the wiring, piping, and ductwork, as well as any major structural defects as defined in the warranty.
- Years 3 - 10: Should any major structural defect (as defined by the warranty) occur during this period, QBW will replace, repair, or pay the reasonable cost of the repair or replacement through its insurer.
- Warranty is automatically transferrable to subsequent buyers.
- Builders’ obligations are limited to only the first two years of the warranty.
- Programs that operate under the Risk Retention Act can increase the builder’s liability beyond this two-year period.
- Due to state requirements, coverage in Indiana and Virginia differs.
QBW Direct: A Streamlined Warranty Solution
QBW Direct is an easy-to-use, online enrollment administration tool used to facilitate smooth home closing processes and streamline warranty enrollment. Through the platform, builders can establish individual users in the system. For builders with multiple QBW accounts, QBW Direct makes it easy to toggle between them to take action across accounts all from one easily accessible platform.
- Manage new construction and closings
- Update and edit homes in open inventory
- Download, print, and/or email warranty enrollment documents
- Interface with title companies and closing attorneys
- Maintain a log of previously enrolled homes
- View and pay warranty or SOS invoices
- Integrated QBW Messenger for electronic communication with support
Advertise your integrity
To further advertise your QBW membership and communicate your integrity, link your website to ours. The link will also provide your purchasers with the opportunity to view the Maintenance Tips Section and Exclusive Discounts.
Resources
Supporting Resources
Detailed Comparison
Coverage Duration
Claims Handling Efficiency
Insurance Backing Stability
Home Warranty Products for Builders
Residential Warranty Company, LLC (RWC)Company Information
RWC Warranty is a leading provider of insured home warranties for the building industry, offering risk management solutions and peace of mind to builders and homeowners. With over 40 years of experience and 4 million homes warranted, RWC takes pride in its commitment to safeguarding its clients.
Keywords
Description
Since 1981, Residential Warranty Company, LLC has been a premier provider of insured home warranties for the building industry with over 4 million homes warranted and an impressive 'A-(Excellent)' rating from A.M. Best. We pride ourselves on safeguarding builders and homeowners alike, providing risk management solutions and peace of mind.
What They Do
Provide insured home warranties for builders, homeowners, and real estate professionals.
Who They Serve
Builders, homeowners, and real estate professionals.
Key Value Propositions
What Customers Say
"It is easy to enroll our homes through your website and your follow up with our clients is quick and effortless. Your level of service and responsiveness cannot be beat. We could not ask for a better warranty company than RWC and we value our working relationship with you."
— Kathy, Indiana Builder
Target Customers
Industries Served
Contact Information
Key Pages
Navigation Links
Summary
A 10-year insured structural warranty program offered as Full Coverage, Day One Full Coverage, or Structural-Only. Provides clearly defined coverage terms, online enrollment, and transferable protection.
Key Features
- 10 Year New Home Warranties (Full Coverage or Structural Only)
- Customized State Warranties (crafted to meet each state’s statutes)
- Remodeler Warranties (3 or 5 year options)
- Administration Only Option (Uninsured Option)
- Building System Warranties (Modular, Log, or Panelized)
- Specialty Warranties (Detached Garage, Conversions & Commercial)
- HUD Code Warranties (Manufactured Housing Warranty Options)
- Extended Warranties for New Homes (Appliances & Systems)
- Incentive Program (Reduce costs & earn cash back)
- RWC Insurance Advantage (Commercial Builders Insurance)
Key Benefits
- Wide selection of warranty plans to fit specific builder needs
- Coverage options for new homes, remodels, specialty projects, and manufactured housing
- State-customized warranties to meet statutory requirements
- Options for full coverage, structural-only, or administration-only (uninsured) plans
- Extended warranties for appliances and systems
- Incentive programs to reduce costs and earn cash back
- Commercial builders insurance available
Who Is It For
- Home builders
- Remodelers
- Commercial builders
- Manufactured housing builders
- Builders of modular, log, or panelized homes
- Builders seeking state-specific warranty compliance
Warranty Products
With so many warranty plans available, we're certain that we've got just the right fit for your specific needs. If you have any questions about how our warranties work or need help choosing the best coverage for your business, contact us and we'll be in touch. For an overview of all of the products we offer - check out our Business Solutions brochure.
List of warranty product types with brief descriptions and links.
- 10 Year New Home Warranties: Full Coverage or Structural Only
- Customized State Warranties: Crafted to meet each state’s statutes
- Remodeler Warranties: 3 or 5 year options
- Administration Only Option: Our Uninsured Option
- Building System Warranties: Modular, Log, or Panelized
- Specialty Warranties: Detached Garage, Conversions & Commercial
- HUD Code Warranties: Manufactured Housing Warranty Options
- Extended Warranties (NEW HOMES): Appliances & Systems
- Incentive Program: Reduce costs & earn cash back
- RWC Insurance Advantage: Commercial Builders Insurance
Resources
Supporting Resources
Detailed Comparison
Coverage Duration
Claims Handling Efficiency
Insurance Backing Stability
Swimming Pool 10-Year Warranty
StrucSure Home Warranty, LLCCompany Information
Description
StrucSure Home Warranty is a leading provider of home warranty solutions nationwide, offering comprehensive coverage backed by stellar customer service and re-insurance from A-rated Lloyd’s of London.
What They Do
Provide home warranty solutions for builders, contractors, and homeowners, including major structural defect coverage and risk management solutions.
Who They Serve
Builders, contractors, and homeowners in need of warranty coverage and services.
Key Value Propositions
Target Customers
Industries Served
Contact Information
Navigation Links
Summary
Insurance-backed 10-year structural warranty that provides direct coverage from the day of closing for major structural defects. Helps builders minimize risk, sell more homes, and avoid litigation.
Key Features
- 1 year coverage for workmanship deficiencies as defined in warranty performance standards
- 2 year coverage for electrical, plumbing, and mechanical delivery systems
- 5 year coverage for plaster defects including osmotic blistering, spot etching, spalling, crazing, or delamination
- 10 year coverage for major structural defects (physical damage to the shell of the pool resulting in water loss)
- Additional coverage options for spas, infinity ledges, or additional elevations
Key Benefits
- Differentiates builder's brand
- Enhances customer confidence
- Protects builder's assets and mitigates liability
- Boosts sales and referrals
- Provides comprehensive coverage for clients
- Dedicated support and straightforward claims process
Who Is It For
- Pool builders
- Contractors constructing new swimming pools
- Clients/homeowners purchasing new pools from participating builders
1-2-5-10 Year Pool Warranty
Provide a 10-year pool warranty for complete buyer confidence. Provide the peace of mind that your clients’ investment in their dream backyard comes with unmatched protection.
Why Offer Pool Coverage?
- Differentiate Your Brand
- Enhance Customer Confidence
- Protect Your Assets
- Boost Sales and Referrals
Workmanship
Coverage for deficiencies in workmanship as defined in the warranty performance standards.
Delivery Systems
Coverage for Electrical, Plumbing, and Mechanical delivery systems.
Plaster Defects
Coverage includes osmotic blistering, spot etching, spalling, crazing, or delamination.
Major Structural Defects
Coverage for physical damage to the shell of the pool resulting in water loss.
Competitive Pricing
- Up to 450 sq feet: $450
- 451 sq ft – 750 sq ft: $600
- 750 sq ft – 900 sq feet: $750
- Over 900 square feet: Custom pricing
- Additional Coverage Options: $200 per spa, infinity ledge, or additional elevation
Resources
Supporting Resources
Detailed Comparison
Coverage Duration
Claims Handling Efficiency
Insurance Backing Stability
Our Ranking Methodology
How we rank these offerings
We ranked these Latent Defects Insurance Firms in USA based on three key factors: Coverage Duration (40% weight), Claims Handling Efficiency (35% weight), and Insurance Backing Stability (25% weight). Insurance-Backed Structural Warranty (1-2-10) scored highest because it offers comprehensive coverage effective from closing, efficient claims handling with strong payout history, and robust insurance backing by Swiss Re and SCOR Re.
Ranking Criteria Weights:
Frequently Asked Questions
- What are the typical costs and pricing models for latent defects insurance in the USA?
- Pricing for latent defects insurance can vary significantly based on the coverage and policy structure. For example, programs like the Insurance-Backed Structural Warranty (1-2-10) typically combine different levels of coverage, including workmanship, systems, and structural, which can influence the premium. The Swimming Pool 10-Year Warranty, offering direct coverage from closing, may incur higher costs due to immediate risk assumption. Pricing models often depend on the builder's risk assessment and historical claims data, creating a custom premium for each project.
- What are key selection criteria for choosing a latent defects insurance firm?
- When selecting a latent defects insurance firm, decision makers should prioritize comprehensive coverage options and the firm's claim handling processes. Programs such as PWSC's Insurance-Backed Warranty emphasize A-rated insurance backing and dispute resolution capabilities, which are critical for effective risk management. Builders should also consider the ease of policy transferability and the quality of customer service provided during enrollment and claims resolution.
- What industry standards and compliance issues should be considered with latent defects insurance?
- Latent defects insurance in the USA must comply with industry regulations that ensure clarity and fairness in coverage definitions. Products like the 10-Year Home Builder Warranty backed by Liberty Mutual typically follow a strict adherence to specific building standards to receive full coverage for structural defects. Compliance with state laws and industry norms is crucial, requiring builders and insurers to regularly update their practices to align with any legislative changes.
- What are some implementation challenges when utilizing latent defects insurance and what solutions exist?
- Implementation challenges often include understanding policy specifics and integrating them within existing operations. Insurance models like the Home Warranty Products for Builders simplify this process by providing clearly defined coverage terms and online enrollment, which reduces complexity. Additionally, the provision of transferable protection helps mitigate future disputes by ensuring continuity of coverage for future homeowners.
- How does latent defects insurance deliver ROI and value to builders?
- Latent defects insurance provides significant ROI by transferring major risk elements away from builders, thus protecting their profitability. Programs such as the Insurance-Backed Structural Warranty enable builders to offer enhanced peace of mind to potential buyers, which can lead to higher sales and minimize litigation costs. The Swimming Pool 10-Year Warranty, for instance, helps builders increase marketability of homes by demonstrating a commitment to quality and reliable post-purchase support.
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