When most insurance agents hear the RWC Insurance Advantage offers Claims-made general liability coverage, they warn their general contractor customers to stay away from it. They say you’ll be trapped by the “gap” in coverage that will open up the moment you try to leave. What happens upon termination of coverage is one of the biggest arguments against Claims-made. The way some agents talk, you’d think Claims-made is like the old children’s poem “The Spider and the Fly;” “Will you walk into my parlor?’ said the Spider to the Fly.” We know the fly enters - never to leave. These agents argue there would be no coverage for any claim made after policy termination even if the loss occurred during the time the policy was in force. And they would be right – with any other company’s Claims-made policy. Those companies will offer you a Supplemental Extended Reporting Period, or SERP, at the end of your policy term when you try to move your coverage to another company. They will charge you up to 200% of your expiring policy’s premium for the SERP. Who can afford that and the new policy premium as well?
This WILL NOT HAPPEN with the RWC Insurance Advantage’s unique Claims-made policy. With our policy, the SERP is offered UP FRONT, and we GUARANTEE that it will be attached, as long as your policy is not canceled for non-payment of premium. Rather than charge a large lump sum at the end for the SERP, we add a reasonable 25% charge to each policy term, and you have 6 years to pay it off. After that, the SERP is fully funded and we GUARANTEE it’s attachment at policy termination - no matter what. Even better, if you decide to leave before the 6 years are up you’ll still get the SERP - and NO COVERAGE GAP.*
The SERP is unlimited in duration and can never be canceled for any reason. It automatically restores limits that may have been used up by prior claims. Even if you decide to move your general liability coverage somewhere else after just one year with the RWC Insurance Advantage, you’ll still get the SERP – guaranteed.
So, walk into our parlor anytime without fear of being trapped. Call us at (866) 454-2155 and ask for Ron Sweigert or click here for a free no obligation quote.
(*Subject to short rate premium penalty if you cancel your current policy before its expiration date.)
As the economy continues to improve, builders are gaining more and more confidence in their business' future. Tides are shifting from builders only treading water to keep their company afloat, to moving forward and expanding profit margins.
The number one cost for builders is direct construction expenditures. Simply reducing costs, even modestly, and strategizing ahead of time will unmistakably help you reach your goals.
Check out the following suggestions and tips and implement them into your business plan to maximize your bottom line.
- Design your new models to attain a predetermined direct construction percentage rate based on the anticipated sales price. A model will not be acceptable if it exceeds a recommended percentage.
- Consider the cost of the lot to determine “how much” house you can build.
- Identify base-model features that can be replaced with more economical items without reducing the home’s appeal. Include input from subcontractors and suppliers about potential cost reductions including design alternatives and worker efficiency.
- Include all options and upgrades within each job’s budget.
- Determine the target gross profit as a component of the budget before starting a project.
- Avoid estimating by square footage. Unless the materials are identical, the site work known, and weather conditions constant, pricing by square foot often leads to inaccurate quotes and underpriced bids.
- Keep the specs simple. Too many options will limit the number of potential buyers.
- Re-estimate immediately after completing the first unit of a new plan to evaluate if additional costs should be considered for subsequent units.
- Create detailed direct construction budgets on model/display homes, just as you would with any other home. Display homes tend to evade the normal budgeting process, leading to higher costs and reduced profits when ultimately sold.
- Perform periodic walkthroughs to control costs and ensure materials are being used as intended. Project managers, superintendents, estimators, and designers should all participate in walkthroughs.
- Develop strong relationships with a select group of subcontractors and suppliers. Constantly switching subs and vendors in search of minor savings can be counterproductive. Try to work with your regular subs and vendors to find savings together.
- Schedule together with your key subs. This will result in a much more accurate schedule than if you created it yourself, and the subs will feel more responsibility to meet their milestones.
- Change orders should be documented using only written forms. This allows both you and the buyer to sign the change order, which should list the change, adjusted total price, and necessary schedule revisions.
- Don’t be afraid to raise prices, especially in a good market. As your costs increase, many of these should be reflected in the sales price. A regular price increase program should be in place.
Source: nahb.com
When a builder provides a warranty on a newly built home, what exactly does that mean to your buyer and to you? It means protection, security, peace of mind and value. And a warranty from Residential Warranty Company, LLC will provide just that. One of the least expensive, longest lasting products a builder can purchase for the homes they build is an RWC warranty.
So why exactly is RWC your best choice?
OPTIONS: The RWC “Menu of Choices” allows you the ability to offer the best Warranty program for your business. From our FHA/VA accepted Standard 10 Year Warranty to our Day 1 Coverage Warranty to our Customized State New Home Warranty to our Remodelers Warranty and more, we have what your business needs.
FLEXIBILITY: RWC’s members are able to pick and choose which Warranty options to use and which projects they wish to enroll. We do not require 100% enrollment on detached homes.
MARKETING FEATURES: RWC provides its members with FREE attractive marketing materials to help promote your business and set yourself apart from your competition.
EASY: RWC offers online enrollment, the ability to order marketing materials, renew memberships and run reports through Warranty Express.
EXPERIENCE: RWC has been in business for 35+ years and has warranted over 3 million homes to date. The average tenure of our employees is 18 years.
STRENGTH: RWC’s insurer, Western Pacific Mutual Insurance Company (WPMIC), A Risk Retention Group, is A.M. Best rated “A- (Excellent)”. WPMIC insures only our thoroughly screened builder members and no other catastrophic risks such as planes, trains or automobiles, which can affect an insurer’s strength and equity. Less risk equals more strength. In fact, WPMIC currently has over $111 million in surplus equity.
CREDIBILITY: RWC’s membership criteria presents us with the strongest builder members. This screening process reinforces your credibility as an RWC member.
PROTECTION: RWC offers FREE mediation. When needed, binding arbitration is also available. Both offer effective resolution for Warranty disputes. This reduces your risk of litigation and legal fees.
ADVOCACY: RWC provides support to the Home Building Industry through our involvement and financial contributions as a member of local, state and national Home Builder Associations across the United States.
Our mission is to provide a level of security to homeowners and Builders alike. We can help you in maintaining or improving your customer service, define and limit your liability, and provide the warranty and insurance products your company needs. For more information, don’t hesitate to call 800-247-1812 x2149 or email sales@rwcwarranty.com.