16

General construction company is selling a 50 year roof. Furthermore, they are selling a 50 year roof with a 50 year warranty by them. Said general construction company has existed for 8 years. I have no reason to believe they will exist in 50 years to honor the warranty.

By what means can a warranty be devised to survive the collapse of the company (liquidation, voluntary or otherwise); and by what may I recognize them as existing?

This question is not about recognizing a 50 year roof; at this point I'm basically assuming that repairs will be necessary. This question is about recognizing if a warranty is any good.

Jen
  • 87,647
  • 5
  • 181
  • 381
Joshua
  • 431
  • 6
  • 21

2 Answers2

25

By what means can a warranty be devised to survive the collapse of the company (liquidation, voluntary or otherwise); and by what may I recognize them as existing?

Some companies outsource their warranties to a third-party warranty provider that either by virtue of the nature of their business, or insurance industry regulations, is more likely to continue to exist than a construction company.

Construction companies also often assign warranties from the manufacturer that come with the installed items in the building to the end purchaser of the building, and manufacturing companies tend to stay in business longer than construction companies.

Keep in mind, however, that many long term warranties, or "lifetime warranties" are written so that they only cover defects that arise from the condition of the warrantied thing at the time it was sold, even if it took a long time to be discovered or to manifest. This is increasingly hard to prove as the years pass from the original sale.

Of course, there are no absolute guarantees in life. To some extent, one has to guess how long there will be someone to honor it (and how long the owner of the property and the successors to that owner will be able to keep track of their warranty related records).

ohwilleke
  • 257,510
  • 16
  • 506
  • 896
11

A trust, bond, or long-term insurance with a company you could trust would be required

There are ways to guarantee long term compliance with contracts, but they are expensive, and you aren't getting one for your roof. You might get one if you own the Superdome, but only because you're willing to pay for it by putting it in in your terms. Considering Lloyd's of London still maintains insurance records for lost ship cargo from the 1600s (which is why you can't claim lost Spanish gold in the Gulf of Mexico), they will likely last another 50 years.

Tiger Guy
  • 9,049
  • 2
  • 22
  • 42