Real Estate Tips from Bob Rich-Warranty for New Home Buyers

Owners of newly-built homes in most states are now protected by implicit or explicit warranties, backed by the builder. But what if your builder is no longer around or cannot correct the problem? Here lies the benefit of a builder's warranty insurance program.
The largest of these insurers is the Homeowners Warranty Corp. (H.O.W.) founded by the National Association of Home Builders. A number of other firms now offer similar protection.
H.O.W. sets standards for construction and requires and arbitration program for settling disputes. If the contractor is unable to abide by the decision, the insurance company will pay for the repairs. While major structural components are covered for 10 years, some minor items are only covered for the first year.
How important are these programs for the buyer? There are plenty of good home built by non-insured builders, but doesn't it make sense to be protected? Incidentally, the cost is relatively low.
The Rich Company offers residential and waterfront properties in Washington, North Carolina.