Phoenix, AZ – Recently the Arizona Supreme Court decided that homeowners can recover the fees they spent to prove shoddy construction in warranty claims.

According to JD Supra, the implied warranty of habitability and workmanship is a contract term. It doesn’t matter if it is implied; the warranty is still legally part of a written agreement that states a residential builder promises the work will be performed in both a workmanlike manner, and that the structure is livable.

Essentially, a claim that is based on the implied warranty is also based on a contract term. Arizona law dictates that those involved in a contract can recover fees on claims “arising out of contract.” Since Arizona courts now view implied warranty as a contract term, homeowners in Phoenix can now recover any fees spent once they prove a breach of the implied warranty.

JD Supra further says that contractors who are defending implied warranty claims will not be eligible for liability insurance. This is because insurers generally do not include coverage for defense of claims alleging a breach of contract.

Wondering if home warranty and home insurance are the same thing? To make a long story short: they are not. Some differences include:

Home Warranty

Home warranties are considered a recommended choice and offers protection for major appliances, electrical units, and plumbing. It will cover the cost of repairing household appliances if they stop working, as long as they meet the terms of the contract.

Home warranty contracts typically cover:

  • Electrical system
  • Garage door opener
  • Heating, air conditioning, and ventilation system
  • Kitchen appliances such as garbage disposal, refrigerator, stove, etc.
  • Plumbing system
  • Washer and dryer
  • Water heater

Benefits of home warranty coverage includes:

  • Allows you to place a claim and speed up how quickly repairs are made
  • Saves huge costs in repairs
  • There’s no limit on the number of repairs you want as long as it is covered

Home Insurance

Home insurance covers damage to your house from natural or man-made disasters, and offers you liability protection from lawsuits if a third party gets involved. If you have a mortgage on your home, then home insurance is mandatory.

Home insurance policies typically cover:

  • Liability claims if someone gets hurt on your property
  • Living expenses if your home is damaged during a natural disaster
  • Personal property such as clothes, electronics, furniture, etc.
  • Structure and contents of the house
  • Theft, fire, windstorm, vandalism, hail, lightening, failing objects, etc.

Benefits of home insurance includes:

  • Covers accidental damage to both the inside and outside of your home
  • Gives you a peace of mind and a feeling of security
  • Pays for loss and minor damages such as windows and broken glass

At the end of the day, home warranties and insurance go hand in hand with each other; it is important to insure your home as well as invest in a home warranty. If you need to recover fees from proving shoddy construction, has insurance claims attorneys in Phoenix who can help.

Contact our Arizona insurance claims lawyers today to schedule a free case evaluation.