On August 14, 1173 Bonanno Pisano, began construction on an 183’ high marble and stone bell tower in Pisa, Italy. It took nearly 200 years to complete, but trouble started long before. Within five years of breaking ground, the bell tower began to lean due to a shallow foundation set in unstable subsoil. The design was flawed from the beginning. A builder’s worst nightmare? Just the opposite. Today the Leaning Tower of Pisa is one of the world’s most visited tourist destinations.
For the rest of us less able to make lemonade from the occasional lemons we’re handed, we need help. Fortunately, for Pisa, the tower’s lean hasn’t caused it to fall over on all those cash-carrying tourists…yet. If that ever happens, the contractor responsible for maintaining the famous landmark better have general liability insurance. Otherwise, it could become the world’s most famous uninsured construction defect claim. Of course, the tower has been standing for over 600 years without falling, so what else is there to worry about? Each year in this country more than seven million injuries are attributed to “slip and fall” accidents. Imagine how many tourists may have slipped or fallen going up and down the steps of the Leaning Tower of Pisa. Now imagine how many would-be buyers might slip or fall at one of your model homes or active job sites.
Nobody likes thinking about third party liability claims. Bonanno Pisano didn’t have to because he didn’t live to see his project completed. You’re probably planning on being around for a while and I’m guessing those plans don’t include losing everything you’ve worked for because someone was seriously injured at one of your job sites. If my guess is right, we’d like to help. Give RWC Insurance Advantage a chance to review your current general liability coverage. Call us at (866) 454-2155 and ask for Ron Sweigert or click here for a free no obligation quote.
It’s competitive out there and customers are looking for the best value in the HUD-Code manufactured homes they buy. Increase your value by adding a MHWC written, insured new home warranty to every HUD-Code home you build. You benefit from an enhanced reputation, an excellent marketing tool and the best warranty program on the market.
You know a warranty is paramount, but how do you decide which one is the right fit for your business? MHWC is happy to help. Together with its national affiliate Residential Warranty Company, LLC (RWC), MHWC has put together a wide array of warranty programs and services, including warranties for new HUD-Code homes, additions, remodeling projects, building systems and detached garages.
Historically, the standard ten year warranty is what the industry has provided and is the coverage Builders have become accustomed to over the years. With MHWC, Builder/Dealers and Manufacturers may choose between “full” coverage and “structural only” coverage. In either option, your liability as the Member is limited.
“Structural Only Coverage” means that coverage is provided for the structural or load-bearing components of the home for the entire warranty term.
• You continue to use your own customer service program to address workmanship, materials & mechanical systems issues in the first year.
• You’ll pay less to enroll a home in a structural only plan.
• You’ll have access to MHWC’s effective dispute resolution system for structural issues, which includes free mediation. Binding arbitration is also available if needed.
• Non-structural customer service issues must be resolved by your own customer service program.
“Full Coverage” means that we couple Structural Coverage together with industry-accepted standards for first year items (workmanship, materials, and selected portions of mechanical systems).
• By far, “full” coverage warranties are our most widely used programs.
• Clearly written set of warranty standards to spell out coverage are provided for you and your homebuyers.
• Includes 1 year of coverage on workmanship & materials and on selected portions of mechanical systems.
• Includes coverage on major structural components for the entire warranty term.
• You’ll have access to MHWC’s effective dispute resolution system, even on first year customer service issues, which can be a valuable tool in managing your service needs. This dispute resolution system includes free mediation. Binding arbitration is available if needed.
We are more than happy to answer questions and help you review your program choices that best fits your business. Contact Tifanee McCall at 800-247-1812 x2132 or sales@mhwconline.com for more information.
Looking for a professional & customer service oriented builder warranty program to enhance your reputation, marketing and risk management?
Check out the Top 10 Reasons to look no further than the RWC Family of Companies!
1. Limited Liability
- Member’s liability is limited in time and coverage as opposed to the state’s longer statute of repose liability exposure.
- Clearly written set of new home warranty standards to identify coverage, limitations & exclusions.
- Standards based on accepted industry guidelines to create reasonable 3rd party basis for evaluation.
2. Widely Recognized New Home Feature
- Homebuyers want assurance that their home will be built by a quality, professional builder.
- RWC new home builder warranties set Members apart from the crowd and provide a sense of security to potential buyers.
- Warranties are an essential ingredient in any new home purchase.
- Wide array of warranty products and services: Full Coverage New Home Warranties, Structural Only New Home Warranties and Customized State New Home Warranties available.
- Options available for various types of specialty construction including Building Systems Homes, Remodeling (including Additions), Detached Garages, Conversions, Commercial projects and HUD-Code Manufactured Homes.
4. Competitive Rates
- Competitive Rates keep builder home warranties an “affordable” option to include for your buyers.
- Exclusive Incentive Program pays cash distributions to qualifying members.
- Multiple-state members pay only 1 membership fee.
5. Government Approved Financing
- Approved by FHA and VA.
6. Customer Service
- Unsurpassed service and excellent handling of warranty issues.
- Neutral & effective 3rd party dispute resolution system includes FREE mediation.
- Approximately 95% of warranty dispute issues are resolved through RWC’s FREE Mediation procedures.
- If needed, formal binding arbitration is available.
- FREE Warranty Training Seminars.
7. Marketing
- FREE marketing materials, including FULL COLOR warranty books.
8. Experienced Warranty Provider
- In business for 30+ years, RWC has administered warranties on over 3 million homes.
- RWC’s Insurer has been rated “A-(Excellent)” by A.M. Best for over 12 consecutive years and has over $100 million in surplus equity.
9. RWC Insurance Advantage
- Insurance program designed exclusively for RWC Warranty Members.
- General Liability, Builders Risk & Contractors Equipment insurance available.
- Insured by a company rated “A- (Excellent)” by A.M. Best.
- Call (866) 454-2155 or use our online form for an RIA insurance quote.
- Protection in the event of a warranted major structural defect failure.
- Resale value may increase for homeowners passing along an RWC warranty on the home.
- Expert 2nd Opinion in the event of a dispute over potential home issues.
For more information on how the RWC warranties can impact your business, call us at 800-247-1812, Ext 2149 or email sales@rwcwarranty.com.
We Have New Home Warranties Nailed!
All of the Builder warranty programs offered by Residential Warranty Company, LLC, HOME of Texas or MHWC feature mandatory binding arbitration of Unresolved Warranty Issues.* RWC and its Builder members have been very successful at persuading courts to recognize and enforce the warranty’s mandatory binding arbitration provision. Courts across the country have removed cases from the courthouse and directed them to arbitration under our Limited Warranty Programs.
A good example can be found in this case study. Residential Warranty Company, LLC (RWC) had issued a warranty on a home, which was in Year 1 of coverage, and the homeowners filed a lawsuit against the Builder. The Builder was well equipped to defend himself with the home warranty book, the application for warranty and his own contract, which included language that made the RWC home warranty, including the warranty’s binding arbitration language, applicable to any alleged warranty defects in the home. Even though the homeowners argued that RWC’s warranty should not be enforced in that state, the court endorsed RWC’s warranty, and the motion brought by the Builder to compel arbitration and dismiss the homeowners’ lawsuit was granted in its entirety.
Consequently, the homeowners initiated a request for warranty performance with RWC. Prior to arbitration, the Builder’s home warranty provides for informal mediation. The parties agreed to use RWC’s mediation to try to settle the disputes about the alleged warranty defects. RWC became actively involved mediating between the homeowners and the Builder. Through this mediation, communication between the homeowners and the Builder improved and several items were amicably resolved. We were encouraged that most, if not all warranty items, would soon be resolved in the same way. At the conclusion of mediation, if any items remained unresolved, the homeowners and Builder would proceed to binding arbitration under the terms of the warranty.
This is a real case and a great example of how RWC’s mandatory binding arbitration provision is an effective tool in preventing litigation. It also supports the value of using RWC’s mediation process to resolve disputes about alleged warranty defects in the homes you build. To get more information on how to best utilize the mediation and arbitration provisions of your RWC, HOME or MHWC builder warranty, contact us at sales@rwcwarranty.com to schedule a Warranty Training Seminar.
*Note that the mandatory arbitration provision is removed by the HUD addendum, and thus mandatory arbitration does not apply to warranties placed on FHA/VA financed homes.