Read about a builder in Gainesville, FL that had a structural claim caused by soil movement - costing them $74,000.

1. A structural
home warranty
could save you
thousands of dollars.
FLORIDA CASE STUDY
By 2-10 Home Buyers Warranty®

2. 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.

3. 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.

4. 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

5. 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
TOP SOIL
SUB SOIL
by proper compaction.
PARENT MATERIAL
BEDROCK

6. Shrink-swell
clay was also
encountered
during the
investigation.
It was determined that the
cracking observed at this home
was caused by a combination
of loose and variable subgrade
material along with the shrinkswell clay below the foundation.
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.

7. What is shrink-swell?
RAINY MONTHS
DRIER MONTHS
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 Protection
Water
ponding
Soil
rises
Evaportaion
Soil
shrinks

8. 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 .
S®
HAPPY HOME
LONG LIVE
$74,000.00
r
meowne
Gainesville Ho
er Of
Pay To The Ord
llars
thousand do
Seventy four
ount
Am
im
Structural Cla
*
*Data collected from New Home Warranty Insurance Company.
00
and 00
2-10 Home Buyers
Warranty

9. 25 ft
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 SOIL

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

11. 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