Another Option for Builders: The Conversion Warranty
Creative builders often look for innovative ways to generate revenue in shaky economic times that sometimes turn into rather profitable segments for their companies. While traditional remodeling and commercial construction are often the “go to” projects, at Residential Warranty Company, LLC (RWC), we found an innovative group tackling a bit of a hybrid in converting commercial space into residential space. While not exactly a “new” type of construction by any means, we simply have received more and more requests for warranties on “converted” buildings. So… we are now answering that call from you!
The newest entry on RWC’s “Menu of Choices” is our Conversion Warranty! Those old warehouses, office buildings and schools that are being gutted and turned into various types of living spaces now can be warranted with coverage designed specifically for that type of work. The conversion warranty offers two options: a) 2 Year Workmanship and Materials coverage or b) 5 Year Structural with 1 Year Workmanship and Materials coverage.
- The 2 Year Workmanship and Materials option works well with projects that have little or no structural renovation taking place. Standards cover workmanship, materials and selected portions of mechanical systems for two years. The Builder is responsible for warranted defects arising in Year 1 and RWC’s insurer is responsible for warranted defects arising in Year 2.
- The 5 Year Structural with 1 Year Workmanship and Materials option is designed for projects that entail an overhaul of the foundation or structural system in the building as well as a non-structural makeover. Major structural defects are warranted for 5 years; workmanship, materials and selected portions of mechanical systems for one year. The Builder is responsible for warranted defects arising in Year 1 and RWC’s insurer is responsible for warranted defects arising in Years 2 – 5.
A primary benefit to the buyer of course is the security factor. If the builder defaults in Year 1, RWC’s insurer picks up the obligation. In this day and age, that simple reassurance goes a long way to calming buyer’s concerns when every other headline reports some other builder closing his doors.
Individual projects will be evaluated by our technical staff to determine if they are eligible for coverage. Rates are based on projected annual sales volume. For more information, please call 1-800-247-1812 ext. 2149 or send an e-mail to firstname.lastname@example.org.
DATE: July, 2013