About Log Home Warranties

Many log home buyers place importance on whether or not a log home company offers a warranty. Most log home manufacturers offer a warranty with their log packages. Some do not.

It's important to understand what these warranties are, what they cover, what they don't cover, and how they work.

Different names
Companies have a variety of names for their warranties. Some of the names you may hear are: Lifetime Warranty, Limited Lifetime Warranty, 10 Year Warranty, Insured Warranty, or Product Warranty.

It is not a home warranty
Many prospective log home buyers incorrectly believe that the typical log home warranty is a general home warranty. It is not (see Exception below).

Most log home warranties are clear to state that the guarantee covers only manufacturing defects in the manufactured product (milled logs) that were created during the manufacturing process. This should be perfectly understandable since the log home company only makes a part of the whole house.

Warranty period
Some log home warranties are good for a lifetime, regardless of who owns the house. Others restrict transferability by either not allowing assignment to a new owner, or allowing it only within a specified time period, usually 5 or 10 years. Other companies specify a time limitation on their warranties, typically 10 or 25 years, often without transfer clauses.

What is not covered
What is not covered by a typical log home warranty? Everything else but the logs and associated structural timbers. Items not covered would include windows, doors, roofing, flooring, framing material, even the caulking and insulation between logs. Most of the these materials are warranted by their respective manufacturers, not by the log home company, and would be warranted even without a log home company warranty.

Warranties also do not cover problems caused by faulty or incorrect construction, improper handling and storage of logs, abuse, misuse, or changes to plans.

Another thing that is often misunderstood is that warranties do not cover log shrinkage, warping, checking, discoloration, or any other natural effects that may appear after the house is built.

Owner requirements
Log home owners must adhere to certain requirements for a warranty to remain valid. Proper maintenance must be strictly followed, as defined by the log home company. Preservatives of the specified kind must be applied in the correct way, and on the specified schedule.

Logs must be protected from moisture, which typically means having rain gutters and splash guards. Logs must not touch soil. Landscaping plants should not touch logs. Lawn sprinklers should not wet logs.

Owners must keep documentation of all maintenance, with receipts and copies of work contracts. These will be needed if there is ever a claim. In case of a claim, the owner is required to show that the problem was caused directly by a defect in the manufactured product.

What's reality
Not to minimize the importance of log home warranties, but log home companies know that offering a warranty makes for good marketing, increases the attractiveness of their product, and is almost a necessity to be competitive.

Are the warranties really necessary? There are no statistics available, but it would be a safe bet that the number of valid warranty claims against all log home companies in a year could be counted on the fingers of one hand. It just doesn't happen that often.

The reason for this is that manufacturing defects are uncommon. Those that occur are most likely going to be caught either at the factory before the logs are shipped, or at the time of construction, before they cause problems. Second, any problems after construction will almost certainly be caused by incorrect building methods or mistakes, rather than material defects.

Furthermore, any reputable log home company will bend over backwards to resolve customer problems, whether or not a warranty is in place, or whether the problem is caused by warranted defects. Log home companies, in general, have much better reputations than almost any other segment of the home building industry.

In conclusion, we suggest that warranties should not be a major factor in choosing one log home company over another. Include it in your list of factors to consider, to be sure, but other factors are much more important.

An exception
A few log home companies offer third-party home warranties provided by companies such as Residential Warranty Corporation (www.rwcwarranty.com) or Home Warranty of America (www.hwahomewarranty.com).

These are insured warranties that cover structural and mechanical problems beyond the limited coverage of most log home warranties. The cost of this type of warranty is included in the cost of your log package, whether listed separately or not. These warranties usually include a deductible, paid by the customer, in the event of a claim.

Since these warranties are generally offered by builders, it's not clear how a log home company who only supplies log packages (but not building services) qualifies to offer them. If your log home company offers this kind of warranty, ask questions to understand exactly how it works and what conditions are necessary for it to remain valid. Also ask what it's costing you.