The following language is added to Section 9 of the Limited Warranty If the Insurer of this Limited Warranty decides to pay the reasonable costs of repairing a claim:
1. The Homeowner will have ten (10) days to respond to the offer to make payment.
2 . If the payment offer is in excess of $5,000.00, the offer must have been made pursuant to a binding bid by an independent third-party contractor that the Homeowner may contract to perform the repairs, except where: a . The payment offer is made in settlement of a legal action; or b. The Homeowner is represented by legal counsel; or c. The payment offer has been reviewed on-site by a HUD-approved fee inspector.
3. The payment will be made jointly to the Homeowner and the Homeowner’s mortgagee. The Homeowner is required, if requested, to identify the mortgagee to the party making the payment.
SECTION 11 : State-Specific Addenda
Concrete Addendum (applicable only if your home is located in Colorado, Kansas, or Missouri). The following language is added to Section 12.4 (Performance Standards): The following language is substituted for the Performance Standards for Basement Floors (Concrete/Slab on Grade):
ACTION REQUIRED
ITEM
COVERAGE
OBSERVATION
The Builder will repair slab by either full or partial replacement of the slab. Filling, topping, grinding, or partial floor replacement are acceptable repairs by the Builder. Patching, caulking, grouting, injecting, filling, and grinding are all acceptable repair methods. Patching, caulking, grouting, injecting, filling, and grinding are all acceptable repair methods.
Slab out of level
Two Years
Slab elevation differential exceeds 3" or 1% of the slab, whichever is greater Unevenness in slab exceeding 1" per 32", or unevenness exceeding 3/4" within 24" of a foundation wall Cracks in excess of 1/4" in width or 1/4" in vertical displacement through the center of the slab Cracks in excess of 1/4" in width or 3/8" in vertical displacement in the contraction joint
Slab on grade bulged, humped, or domed
Two Years
Cracks in the center of a slab (not in contraction joints)
Two Years
Two Years
Cracks in slab in the contraction joints
25
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