Protection & Peace of Mind: Reasons You Need a Home Builder Warranty
A home builder warranty is an expected inclusion for most new home and major remodeling projects.
You may sometimes feel that builder warranties benefit homeowners more than they benefit builders, but they are a necessity for both parties.
How does a home builder warranty offer builders like you sufficient protection and peace of mind? Read on to find out.
Why Do Builders Need a Home Builder Warranty?
First, a home builder warranty should be well-crafted in order to be fair to both the homeowner and the builder. A verbal contract and handshake between a builder and homeowner simply does not suffice.
You never want to be stuck with the potential legal troubles stemming from only having an implied warranty to guarantee your clients that their house has been completed according to an agreed-upon standard of work and materials. Not having a home builder warranty on paper is rare and is as good as admitting that you are amateurish or unprofessional.
Builder warranties need to be phrased in a clear and understandable way as much as possible, with no vague language that leaves room for more than one interpretation. The foundation of a truly beneficial home builder warranty is having the same shared understanding of what’s included and discussed in the document between you and your client.
Homeowners should feel secure, while builders should feel protected from being held liable for every single house defect for the foreseeable future.
1. A Home Builder Warranty Helps Sell Homes
If there’s one thing you can count on, it’s that your potential clients will have done their research. Building a new home or taking on a major renovation is a huge undertaking, and they will want to get the best possible deal they can find.
As a builder, it is to your benefit to include a home builder warranty as part of your construction packages. Discerning clients will look for this and may dismiss you as a potential builder if you don’t have one. They may even drop you for having an inadequate builder warranty compared to those offered by other companies.
2. Builder Warranties Define Builder Liability Limitations and Exclusions
Many new homeowners fear the worst when it comes to builder warranties and the trustworthiness of their chosen builders. At the same time, there are many honest and hardworking builders fearing that they will be taken to court over building defects that aren’t their fault.
Maintaining a healthy and communicative relationship with your clients during the duration of the construction project will go a long way toward soothing those fears.
It is also in your best interest to insist on going over the details of the home builder warranty you provide with each and every client. If needed, explain warranty limitations and exclusions that may seem unfamiliar to them. Take note of everything that’s said and promised and make sure that nothing falls through the cracks.
Are great client relationships a replacement for great builder warranties? Of course not. Even with maximum trust and communication, difficult situations may still arise. When that happens, a home builder warranty that’s backed by your record of transparency and professionalism and by a strong third party insurer will be a lifesaver.
3. A New Home Warranty Helps Maintain the Reputation of Your Business
Sometimes, despite your hard work and best intentions, there are situations beyond your control that may affect the structural integrity of one of your projects.
It could be something to do with the materials you used, or substandard workmanship of a subcontractor, or something else beyond your control. What’s important here is that if it is something that you truly believe you are responsible for, a new home warranty, whether that is a standard RWC 10-year warranty or RWC’s unique Customized State variety, provides you with a chance to make things right without overextending the help you’re willing to give. By purchasing an RWC warranty, you can even transfer the responsibility for making things right to the warranty program’s insurer.
When a home builder warranty’s limitations and exclusions work for you, that is protection. When you are guaranteed a chance to help out former clients in their time of need, that is good customer relations that give you peace of mind.
This is an important point for builders who are in it for the long haul. Issuing a new home warranty to every client lets them know that you care about your workmanship and your reputation even after you’ve been paid.
Looking to Provide Your Clients the Best Home Builder Warranty Plans Possible?
Many builders choose to go with warranty plans handled by third-party companies. These establishments streamline the warranty process, saving you the time and effort it takes to negotiate and draw up airtight and legally compliant home builder warranties on your own. Warranty plans leave you focused on what you know best: building and selling homes.
Another great feature of these professionally prepared builder warranties is the inclusion of neutral mediation and formal arbitration services (if needed) in cases of warranty claim disputes. These can be invaluable, as arbitration out of court costs much less than going to trial in court.
RWC provides warranty plans with different coverage options, as well as customized new home warranties to meet state statutes, for builders located all over the United States. Get a warranty quote today!