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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!

presenting the benefits of a new home warranty

Builders, remodelers and manufacturers need a trusted, experienced company to work with when presenting the benefits of a new home warranty to potential homebuyers. Here’s how to choose one.

Today’s savvy home buyer is always looking for information and tools that make their buying – and building – decision a bit easier. When a new home warranty is placed on a home, it can offer the buyer key reassurances, encouraging them to invest in a home building company they may not have thought to partner with before. A new home warranty is a way to minimize risk to builders and worried buyers and offer that peace-of-mind that helps everyone sleep well at night.

Before all else, though, builders should work to develop a solid relationship with a trusted new home warranty company. While there are numerous options available, they’re not all the same. Look for a home warranty company offering the most attractive features and resources for home buyers.

1. A Reliable, Effective New Home Warranty Program

A Reliable, Effective New Home Warranty ProgramAt the heart of any solid construction company is an effective, comprehensive new home warranty program. Product options change from one company to the next. These features tend to be quite valuable to builders, so it is important to understand the particulars of each variety.

Warranty Types Available

Choose a company with a wide selection of warranty options. Builders like to be able to choose what works for their needs and business model, and one size does not fit all. Many times, the type of warranty makes a big difference in the benefits perceived by consumers.

Look to a company with a menu of options for the specific style and type of home you typically build. Builders unsure of what type of warranty is right for them can get support from Residential Warranty Company, LLC (RWC) during the selection process.

Length of Warranty

Historically, the standard 10-year warranty is what this industry has provided and is the coverage builders have become accustomed to. Ten-year warranties are an effective way to deal with a variety of issues including customer service, marketing, and mandated new home legislation. They may provide outstanding benefits to homebuyers looking for more protection. Residential Warranty Company, LLC offers a variety of options to fit all needs, including customized state warranties, which is the most unique and specialized warranty program in the industry.  Each individual state warranty is crafted to meet that state’s statutes regarding new home warranties.  For example, statutes in Indiana require that roof systems be warranted by the builder for 4 years so the RWC Indiana Warranty includes that coverage. In Iowa, structural components of homes must be warranted for 10 years, so in that state, the warranty term is 10 years.

Transferable

A key feature for many homeowners is whether the warranty is transferable. This allows for the next home buyer to maintain the same warranty on the property.

The warranties available through Residential Warranty Company, LLC are transferable. The resale value on a home may increase for homeowners passing along an RWC warranty on the home.

Insured Warranty Protection

Insured warranty protection provides lasting protection for property owners. The best warranties are insured independently from the builder of the property. That’s an important, but often hard to compare feature. When separate like this, it does not matter what happens to the builder. The warranty remains in place and protecting the property owner during the term of the warranty.

In some areas, builders may come and go. Having this particular feature means there’s less risk to the home buyer that the warranty itself will terminate should the builder close up or go bankrupt.

Since some builder warranties are uninsured and unwritten policies, they lack any real support in cases of a builder’s failure. That leaves the home buyer exposed. With a new home, then, a third-party warranty is a better bet.

Warranty protection provided by Residential Warranty Company, LLC includes insured warranty protection. That’s long-term protection no matter what happens to a home builder.

Well-Recognized Company

It’s always beneficial to have a company that’s well respected in the industry. This allows the home buyer to verify the company’s reputation. It also ensures that the builder can verify that the company is a solid partner in the process.

If a company is not well known, or is sold and resold, there is little ability to prove their service and their long-term experience. This could mean a less secure or beneficial product. Instead, look for a company with an outstanding reputation.

Residential Warranty Company, LLC has nearly 40 years of experience and has written warranties on more than 3 million homes.

Clear Warranty Book

This may seem like a simple feature, but it is typically overlooked. Not all companies offer a clearly written warranty book, one that outlines all of the policy details and features. Not having this can be a significant problem for a homeowner down the road.

When choosing companies for new warranties, ensure there is a set of clearly written standards and that the buyer receives a written copy of those standards. This ensures that every feature and coverage element is clearly outlined and understood in advance of purchasing the warranty. This is something you can expect from Residential Warranty Company, LLC.

2. Outstanding Builder Support and Benefits Are Always Provided 

As a builder, you need to understand the roles that warranty pros play within your business. It has become more common for home buyers, including those buying existing homes and those purchasing newly built homes, to insist on warranties. Insurance companies and homeowners’ associations typically approve of them as well. However, it is not always clear which company is the best fit.

Strictly from a builder’s point of view, there are a few essential features to look for in any organization to determine if they are the right team to partner with. Take a look at a few key features we offer at Residential Warranty Company, LLC to encourage the best support for agents.

Marketing Support for Builders

It’s always a good idea to have the right tools to help you market your services to home buyers and sellers. With the help of a comprehensive set of marketing tools, that is easier to do. It also saves builders money in not having to develop these marketing tools on their own.

When incorporating the availability of third-party insured warranties through your service, buyers can feel more at ease with their purchase. When a home is resold during the warranty period, the warranty can help secure a new buyer by extending protection to that new buyer. This is an important and valuable marketing tool.

Membership Is Qualified

Another commonly overlooked feature to consider when choosing a new home warranty company is the quality of its members. Learn who they are and what they offer. Warranty members should be well- respected, proven companies. They should have the ability to back and stand behind the products they create.

As a builder, it is vital to choose a company that has very stringent screening criteria for these members. This should include areas such as technical compliance and financial stability. Partnering with an organization that has ethical members is also essential for most builders.

Limited Liability Risks

A key reason to work with a respected home warranty provider is the risk management and reduced liability it brings to builders. A well written warranty can limit liability by outlining which party is responsible for making the necessary defect repairs, depending on the specific terms spelled out in each warranty product.

3. Excellent Customer Service That MakesBuilders Look Good, Too

Excellent Customer Service That MakesBuilders Look Good, TooWhile it may be easy to overlook the value of customer service, when choosing a new warranty company, this could be the most important consideration. The builder needs to know that the company they decide to work with is there to help them whenever there is a problem. As a builder, it is very important to align yourself with a warranty company willing and able to ensure the best possible service to every client, whether it is in the beginning stages of membership or when servicing a homeowner’s complaint.

Building homes is no easy process. Selling and servicing them is not either. However, when you have a warranty company that treats your homebuyers like you would treat them, you can feel confident aligning your services with them. Here are a few ways that Residential Warranty Company, LLC can help in this way.

Outstanding Online Info Access

One of the nice features available to both builders and homebuyers is information. This may sound very simple, but some warranty companies that offer limited information online, require an in-person meeting to discuss the warranty.

A better option is to have access to information upfront through a comprehensive website. There are many resources available through Residential Warranty Company, LLC that all parties can use to learn more about warranty types, lengths, coverage limitations, and costs. This can make the entire process a bit easier to manage and is a fantastic education tool for builders and homebuyers alike.

Excellent Customer Service

Another nice feature is that Account Executives are readily available to answer questions and explain why an RWC warranty is an essential ingredient in any new home construction or remodeling project. RWC offers competitive rates and has an extensive menu of warranty choices.

From becoming a member to enrolling homes to warranty resolution, there are professionals available through Residential Warranty Company LLC to help guide a builder (or homeowner) through the entire process.

When you invest time in finding a warranty company you can truly trust and expect to provide exceptional service, you do not have to worry about the relationship. You gain the benefit of being able to connect your buyers and the peace-of-mind they need. This pays off for years to come even as those clients sell their home in the future with a warranty in place.

Online Enrollment Feature

The home enrollment process is very simple and straightforward. Warranty Express is RWC’s online system which includes the ability to enroll homes and obtain reports, execute membership renewal, and a simple way to order free marketing materials. It can be one of the easiest and stress-free ways to stay organized and have each home and its warranty info at your fingertips.

One of the excellent benefits of this is that it works as a cohesive process for the builder and saves both time and money. On today’s fast track called life, no one has the time or the desire to manually complete enrollment forms for each and every home built. In fact, Warranty Express allows builders to enroll multiple homes at once and the system provides immediate confirmation that the home was enrolled. Plus, as part of this electronic system, the warranty book is immediately ready for you to download.

Dispute Resolution Tools

No one wants to think about problems occurring, but they can from time to time. With Residential Warranty Company, LLC, a dispute resolution system is in place to minimize any type of ongoing problem or concern. This process ensures that the builder or the homeowner can voice concerns in an open environment. Both parties receive free mediation services from Residential Warranty Company, LLC to help resolve any disputes that do occur, during set time periods as described in their warranty.

Learn more about how new home warranties can benefit your business. Call Residential Warranty Company, LLC at (800) 247-1812 x2149 or contact us now online for one-on-one help. 

By Doug Davis, RWC Insurance Advantage

Did you know a loss control program can LOWER YOUR INSURANCE COSTS by earning you UP TO 25% DISCOUNT off your first year’s General Liability premium, if you are new to our program, or at your next renewal? But what if you don’t have a formal loss control program? You may be doing a lot to ensure a safe jobsite, but how do you prove it? Then too, you may have intended to develop a formal program, but the pressure to finish your current project ate up all your time.

If you have a formal loss control program, great! Give us a copy of your guidelines and tell us a little about how it’s going and we’ll help you SAVE MONEY on your General Liability. But, if you don’t have anything in writing, or if you’re still struggling to get started, we have some tips that you might find helpful. We call them THE 7 BASICS. These suggestions are intended as a rough guideline to help you get started in establishing a loss control program. If you already have a program, it is hoped these 7 BASICS will help you review your procedures and make any improvements necessary.

  1. Establish a loss control policy and who will be in charge of it.
  2. Assign responsibility, authority and accountability.
  3. Maintain safe working conditions.
  4. Establish training for loss control.
  5. Set up procedures for accident reporting and investigation.
  6. Create and maintain first aid procedures.
  7. Develop a culture of safety through employees’ acceptance and involvement in their own accountability.

If your general liability is coming up for renewal, or if you’d like to know what the RWC Insurance Advantage can do to help SAVE YOU MONEY on your next policy, give us a call at 866-454-2155, or visit us at www.RWCInsuranceAdvantage.com.

Looking for more information? – Read a more detailed explanation of these 7 steps

By: Staci Cool, RWC Account Executive

The ebb and flow of our real estate market can be quite an exhilarating ride thanks to the rules of unpredictability. This frequently changing industry certainly keeps us all on our toes from day to day. Many of us likely relate to the shuddering uneasiness we feel when reminded of the market crash in our, too-close-for-comfort, history.

For those that were able to survive the crash, an appreciation for what it takes to persevere through crisis was gained. Given this shifted perspective, many companies have opted for conservative growth by avoiding top heavy investments and forgoing extensive financial commitments. Despite the need for more housing, builders are taking their time to expand and carefully considering overall financial health as paramount.

Futuristic goal setting is not a new concept; however, it has taken on a new form due to these economic influences. Together, both historical reflection and a healthy outlook are necessary in order to create a well-honed vision for the future. Historically speaking, when was the last time you considered how much has changed from the day you started your business? How many homes did you start out building or remodeling and where are you today? What are your company goals for 2019 and beyond?

Whether it is a personal choice or an economic shift that has pushed you to grow, arguably, your business probably looks nothing like it did the day you first opened. Perhaps growth isn’t in your immediate future and you are considering reducing your inventory as you are looking forward to retirement. Regardless, with these decisions there are numerous considerations to be taken. Everything from staffing requirements to pricing of materials can determine the feasibility for implementation of your plan.

One area that is often overlooked is how your warranty options are stacking up to your needs. Residential Warranty Company knows that finding your glass slipper may require trying on everything in the store. For this reason, we highly recommend doing an annual or, at most, a bi-annual, check-up to review where you stand.

As an example, a recent builder partner contacted us to advise that they were experiencing a major growth spurt. Their current projections far exceeded the plans they originally communicated to us the year prior. Originally, they were using a full coverage warranty on just a few USDA homes per year. It was thought that they would replicate this initial predicted growth for the upcoming 12-month forecast. However, it was quickly discovered that their warranty coverage requirements had to be reevaluated. Through the discussion it was determined that they were now able to qualify for additional options within our library of products.

What this can mean to you depends on where you are headed. Perhaps you have decreased/increased your price point or have grown/dropped in the total number of homes you plan to build. It is especially important to communicate with us if your projections indicate you will warranty 20+ homes per year or need to cover $2 million+ dollars in business annually.

Maybe you have decided to introduce a new remodeling division, we have several options for remodeling warranties which mirror your state requirements. If you have added a brokerage or are selling aged spec homes, our family of products includes after-market appliances coverage and a true structural coverage warranty. Perhaps you want to price out our general liability insurance before your next renewal, a quote for comparison may be obtained at any time. These membership perks are available at no additional cost to you. Utilizing your membership to its fullest extent, by communicating your needs frequently, can shed light on any untapped resources which may be available.

In conclusion, it is not a secret that your business will change from year to year and decade to decade. However, pinpointing exactly what can happen and when is not a perfect science. Our goal is to collaborate with your business to create an optimal growth plan which aids in your success. Even though the Spring rains are meant to help create a beautiful landscape, sometimes there are floods. Properly implementing all available options for financial protection will allow your business to fully blossom.

Have your needs changed? Get connected to your local Account Executive by calling us at 800-247-1812 and asking for the Sales Department. We are here to help!

Is there a subject you would like to see highlighted in an upcoming newsletter? Do you have a burning warranty question or a desire to learn more about a specific real estate related topic? Even if it is a simple question on a process or a suggestion for a topic, we would love to hear from you. Send your feedback and requests to: Info@rwcwarranty.com. Don’t be shy! If you are curious or want an answer, odds are, so do some of your peers!

Just like those builders who diversify their projects so that they stay busy regardless of what the economy is doing, RWC is also diversified in its home warranty plans.

We offer warranties for builders who provide remodeling services, construct commercial projects, or even build detached garages. In addition, there are situations in which the traditional 10 year warranty is not a good fit, either for the builder or the project. For those unique situations, RWC’s affiliate, Residential Structural Warranty (RSW), offers 1 year renewable coverage.

If you find yourself in a situation where the ‘usual’ warranty you provide just doesn’t quite fit, give us a call! Odds are we will have a type of home warranty coverage that aligns with your needs.

SPECIALTY HOME WARRANTIES

5 Year Commercial Warranty

5 Year Detached Garage Warranty

1 Year Renewable Structural Warranty

Conversion Warranty

Set yourself apart from the competition in bid situations by including a home warranty designed specifically for your type of project. Click here for further information.