$840+

UNDERSTANDING

New Home Construction on the Rise

As new home sales increase, demand for home warranties is mounting. Here is what you need to know about them.

FORSALE

1. North Dakota 2. District of Columbia 3. South Dakota 4. Texas 5. North Carolina

Growth in New Homes Expect to see further increases in:

New home construction

2015

Thanks to steady economic and employment growth, total sales for new and existing homes will reach

$6 million in 2016—the first time since 2006.

2016 2015 2016

10% 12%

Single-family homes sold

14% 16% Who’s Buying Them?

Millennials(25-34)

36% 30%

14% 20%Young

Gen Xers(35-44)

Other

Retirees (65-74)

Top States for New Construction

6. Utah 7. Delaware 8. South Carolina 9. Colorado 10. Washington

Top U.S. Cities for New Construction

1. New York, N.Y.2. Dallas, TX3. Houston, TX4. Washington, D.C.

5. Atlanta, GA6. Los Angeles, CA7. Miami, FL

Home Warranties: Are You Covered?Protecting your home starts with understanding what home warranties cover.

There are two main types:

Systems &Appliances Warranty: Repair or replacement in case of home system or appliance failures.*

Structural Warranty: Workmanship and materials related to integral components of a home.

Why Home Warranties MatterHome warranties benefit everyone, from builders to homeowners to realtors.

BUILDERSStructural warranties make new-home buyers more confident.

HOMEOWNERSSome homeowners could be just a few home repairs away from financial ruin.

STRUCTURAL VS. APPLIANCESHOME WARRANTIES

Warranties by the Numbers*

Total value of U.S. home warranty market

Annual growth in home warranties

Total number of structural claims made under U.S. warranties

Total amount paid for warranted repairs

WINDOWS

SIDING & STUCCO

DOORS & TRIM

ROOF FRAMING

FOUNDATION

STRUCTURAL BEAMS

HVAC SYSTEMS

FLOOR SYSTEMS

PLUMBING SYSTEMS

ELECTRICAL SYSTEMS

$2 billion

$1.4 billion

55,000

4.4%

How much in repairs would break your budget?

Less than $2,000

$2,000 to$2,999

$3,000 to $4,999

More than $5,000

Percentage of homeowners who feel a major home repair would send them over a fiscal cli�:

62%8%

17%

13%

What are the odds?

65% of homeowners have had to repair or replace a home system or major appliance in the past year.

35%have had to do both.

$1,200+

Average replacement cost*:

Average repair cost*:

REAL ESTATE PROFESSIONALSWhether it is a structural warranty provided by the builder or an extended warranty for systems and appliances from a real estate professional or builder, warranties give homes a competitive edge.

of prospective buyers are more likely to purchase a new home with a structural warranty.

94% 80% concernthe home’s foundation.

Did you know that: New homeowners are AS LIKELY to experience major structural damage as they are a major fire?

buyersprefer a warranted home.

of home sellers o�er incentives such as home warranties to entice buyers.

8 in 10

Homes with warranties

sell up to

than those without.

50% faster

A warranty

increasesthe sales prices by

UP TO 3%

SOURCES: Realtor.com, U.S. News & World Report, Forbes, IBISWorld, National Association of Home Builders, Baltimore Sun, This Old House, Realtor Magazine, San Francisco Chronicle, Gallup, National Home Warranty Association, Business Week, articles.latimes.com/2013/

www.pwsc.com © 2016 Professional Warranty Service Corporation Infographic designed by Mad Fish Digital

DISHWASHERCost to replace: $240-$700

• WINDOWS• SIDING & STUCCO• DOORS & TRIM• HVAC SYSTEMS• ELECTRICAL SYSTEMS• STRUCTURAL BEAMS• PLUMBING SYSTEMS• ROOF FRAMING• FLOOR SYSTEMS• FOUNDATION• AND MORE!

• DISHWASHER• GARBAGE DISPOSAL• RANGE• WASHER & DRYER• REFRIGERATOR• MICROWAVE• AIR CONDITIONER & HEATING• FAUCETS & FIXTURES• SMOKE DETECTORS• AND MORE!

GARBAGE DISPOSALCost to replace: $40-$200

RANGECost to replace: $300-$1,350

WASHER & DRYERCost to replace: $500-$1,350

REFRIGERATORCost to replace: $350-$2,000

MICROWAVECost to replace:$300-$680

AIR CONDITIONER & HEATINGCost to replace: $1,500-$6,500

FAUCETS & FIXTURESCost to replace: $154-$336

SMOKE DETECTORSCost to replace: $63-$304

PLUMBING SYSTEMSCost to replace: $2,000 - $10,000

ELECTRICAL SYSTEMSCost to replace: $650-$2,000

*Replacement costs based on mid-range prices.

SMOKE DETECTORS

FAUCETS & FIXTURES

AIRCONDITIONER

& HEATING

MICROWAVE REFRIGERATOR

WASHER & DRYER

RANGEDISHWASHER

DISPOSAL

8. Phoenix, AZ9. Boston, MA10. Chicago, IL

36%

10

9

87

65

4

3

2

1

68

10

5

7

4

9

1

3

2

ROOF REPLACEMENT Cost to replace: Up to $12,000

FOUNDATIONCost to replace: $500 - $10,000

*without a home warranty

*November 2015 Data

1 in 4 new homes will experience some structural distress.

Most structural claims are reported within 4 to 7 years.

Active soil causes more property damage than all of these combined:

• FLOODS • EARTHQUAKES • TORNADOES • HURRICANES