Coverage Types

Warranty programs are commonly developed as one of two different types of coverage: surety or direct.  Below are definitions of each to help you understand their differences and what they mean to you.

Surety Coverage

  • The warranty holder calls you (the builder or contractor) first if a covered warranty issue occurs.
  • As the builder or contractor, you are the first responsible party for correcting covered defects and/or deficiencies.
  • Surety coverage (via the warranty administrator) goes into effect if you are unwilling or unable to meet warranty obligations.

Direct Coverage

  • The policyholder calls StrucSure Home Warranty (the third-party administrator) if a covered defect and/or deficiency occurs.
  • StrucSure is responsible for repairing or replacing, paying the homeowner the reasonable cost to repair or replace the defect and/or deficiency, or paying the homeowner the diminution in value of any warranted item.
  • StrucSure reimburses expenses to the warranty holder or the contractor who corrects the deficiencies.