Nobody likes paperwork but sometimes it’s a necessity. RWC requires a signed Application for Enrollment* to finalize the warranty and to validate coverage. A home cannot be warranted with RWC until that signed Application for Enrollment is returned with both the homeowner’s and the builder’s signature. Also, payment must be remitted to RWC if not already paid on Warranty Express.
Many builders, and you may be one of them, rely on the closing agent or an attorney to send in the signed application. Unfortunately, sometimes this gets lost in translation and the signed application and maybe even payment is not received by RWC. Sometimes RWC does not receive anything back from the closing agent; sometimes we receive the signed application but no payment; and sometimes we receive payment without the signed application. In these cases, we are not able to validate coverage for your homeowner. Please keep in mind that the signed Application for Enrollment should be sent to RWC within 10 days of settlement.
Why is it so important to return the application signed? In most states signing the Application for Enrollment binds the signees to the terms of the Limited Warranty. Agreeing with the terms of the Limited Warranty means that everyone agrees to binding arbitration. Binding arbitration is a cost effective and efficient resolution process and is preferred by RWC to resolve disputes. Arbitration helps all parties avoid those expensive lawsuits that can eat into profits. RWC and its affiliates are always looking out for the best interests of our builder/members. It is critical that you provide RWC with the settlement date as well as the full final sales price of the home. As you know, some warranties are flat fee (CSW) but some are based upon your rate and the final sales price.
There are a few unique state requirements depending upon where you build. Please note that additional initials are required in Georgia & Tennessee. For California, Minnesota, Missouri and Vermont an additional Addendum is required for the CSW (Customized State Warranties). In New York, a supplemental enrollment form is required for the full 1-2-10 warranties. A contract or deed is required in New Jersey to release the warranty documents.
As the builder you can monitor the progress of your enrollments by running reports on Warranty Express. By going to the “Reports” tab you can see your “Open” enrollments as well as the “Closed” ones. The “Open” enrollments represent those homes that have not been finalized, so they are missing something. You can always call RWC if you have questions, and you can request an open enrollment report. We are happy to assist. RWC is developing improvements to our website to alert you of open enrollments. You should be able to see these upgrades soon.
If the homeowner’s email address is provided, they will be sent an email once the warranty is finalized with instruction on how to secure a copy of their confirmation page and warranty book.
I hope that this provides you with a better understanding of this important document. Please call RWC at 800-247-1812 with any questions. We are eager to help.
By Ron Sweigert, Manager - Member Services Department *Not applicable for National Accounts.
Life can be funny, and by “funny” we don’t necessarily mean comical. We mean that life can be difficult to explain or understand at times. Life’s road is riddled with unexpected twists and turns. We can be set in a comfortable pattern that we think will last forever, but when we stay that course, and the road unexpectedly twists this way or that, we need to find the better way forward or risk disappointment, sadness, or even calamity.
This truth does not apply just to individuals but also to businesses and specifically to home builders. At RWC, we have a sister company that has been building homes for fifty-three years. Over more than half a century that company has generally thrived but sometimes twists in the road presented challenges that required changed plans, innovative approaches, or simply patience. There were mortgage interest rates exceeding 18% in the eighties. In the nineties the dot.com bubble expanded then burst, causing a feast for builders and then famine. In the first decade of the new century money was easy to borrow. McMansions, like so many mushrooms, popped up in developments across the American landscape. But then came the crash of 2008 and the meltdown in the real estate market.
Just as the homebuilding industry was feeling “normal” again, the Covid pandemic hit, and the market dried up. When the pandemic eased and normalcy returned, builders faced delays, shortages, and price increases in their supply chains. Some builders did not make it through, while others adapted to the new normal and found a way.
Government money paid to people who had lost their jobs or their customers during the pandemic soothed some fears but also triggered another round of inflation. The market stalled. When people regained the mood to start building and buying, builders again faced supply chain problems, and good labor was hard to find at affordable prices. Those problems were mostly resolved, or at least improved, but then interest rates rose, and the market cooled down.
With the start of 2025, the homebuilding industry was poised to prosper. But as we write this, the stock market is tanking, economic uncertainty is gripping the world, and builders are preparing for yet another twist in the road, this one caused by the expected inflation, the possible higher interest rates, and whatever other problems might develop from a prolonged trade war. We don’t have a crystal ball, and maybe these issues will be resolved without affecting the homebuilding market. But even if these concerns disappear, at some time there will certainly be more obstacles, curves, and detours on the road ahead for America’s homebuilders. The question we should always be asking is, “What’s next?” so we can anticipate coming obstacles and react to them early if we want to beat the competition and continue to thrive.
We recently had the pleasure of attending a meeting conducted by John, a builder friend of ours, who talked about how his company is preparing for whatever the future brings. He broke his company’s business down into four parts: getting leads; getting contracts; building the house; and servicing the home and customer after the sale. John recognized the importance of the RWC warranty and our warranty resolution staff in making that fourth part successful no matter what the future holds.
For nearly four decades RWC has provided warranty protection on more than four million homes. We offer a wide variety of warranty options like our standard ten-year warranty, our Day 1 coverage warranty, our extended appliance and system warranties, and our specialty warranties for remodeling projects, detached garages, and commercial construction. Only RWC has developed and offers its members a customized state warranty that mirrors each state’s statute of repose and accommodates other state specific issues. All RWC warranties provide clear performance standards that help create realistic homeowner expectations and provide a road map to resolve even the stickiest customer complaints.
At RWC, every guarantee our warranties make is backed by Western Pacific Mutual Insurance Company, RRG. Western Pacific has an A- rating from A. M. Best and only insures home warranty and similar new home construction risks, like builders’ general liability, which can be offered through the RWC Insurance Advantage program to RWC members. No other warranty company has an insurer with this kind of strength solely dedicated to covering builders and their homes.
Life is funny, you know, and life’s road can be twisted and bumpy. And we are never sure of what challenge is coming next. You will be better able to navigate the road your company is on no matter how that road twists or turns if you take RWC along for the ride and place a RWC warranty on every home you build.
Have a great summer!
Adapted from articles on builderonline.com and nahb.org
Data collection and organization. Design changes. Smart home automation. To be competitive in this challenging market, builders need to make the most of every project opportunity, and artificial intelligence could be a game changer. The possibilities associated with artificial intelligence (AI) are endless as various industries search for ways to implement it into daily tasks. The home building industry is no exception as developers create various solutions to common home builder issues. From the juggling of paperwork and data storage to securing material bids or design plans, startups are arriving with answers to everyday stresses and challenges.
While AI can certainly be a valuable tool, human touch is still needed to not only develop these technologies but see each solution through to completion. Below, learn six ways AI can improve the new-home construction process for builders and their teams.
- Creating a Home’s Digital Copy
AI can help organize the build process through room segmentation and data association by ingesting messy build documentation (selections, change orders, etc.), then collecting and organizing everything to create the most accurate representation of the home. AI-enriched file management enables builders to work more efficiently and easily hand off each home’s information to homeowners in a highly organized and interactive digital copy. Users can drop files onto a space on a floor plan enabling spatially associated selections for each room. Additionally, users can store files, that will then be associated with the correct room (e.g., bathroom #1) on the floor plan. - Streamlining Bidding and Sourcing
Procurement software can help builders gather bids, find materials and niche suppliers—including sustainable, minority-owned, woman-owned, and veteran-owned businesses—order materials on a predictive schedule, and make change orders with a click of a button. - Supporting Customers and Sales
In terms of customer service and sales, AI can help new-home sales teams answer questions through chatbots at all hours of the day. Chatbots (also refered to as digital assistants) can meet buyers wherever they are in their journey—without the pressure of live chat solutions. Home buyers are two to three times more likely to engage with a chatbot versus live chat because of the ability to immediately get answers to their questions. Builders can implement a chatbot to operate autonomously, guiding a buyer until they have indicated that they are interested, at which point a live representative could take over the process. - Keeping Jobsites Safe
AI also plays a significant role in enhancing on-site safety. Construction sites can be monitored in real-time, identifying safety hazards such as workers not wearing protective gear or machinery operating outside safe parameters. AI systems can then alert site managers immediately, helping to prevent accidents and improve overall safety compliance. AI object detection can also recognize specific vehicle types and license plates, handle access control, and verify deliveries for management. AI proximity advisories are also sent when workers are close to energized equipment keeping workers aware of their surroundings and allowing in-person safety site visits the option of remote inspection. - Simplifying Interior Design Choices
To envision how an area will look, AI systems such as Planner 5D can simplify interior design projects by allowing builders or architects to brainstorm ideas without investing excessive time or effort. By uploading a picture of an area, users receive multiple options for a potential space, and it can serve as a collaboration tool between builders, designers, and clients. Once an image is uploaded, users are asked to specify the type of space: a kitchen, bedroom, bathroom, office, living room, or children's room. Builders or designers can experiment with various formats and see how the space could potentially appear if its functionality were changed. The end results might even inspire users to reconsider the room's layout unexpectedly. - Automating Smart Home Tech
As builders continue adding and prioritizing smart-home solutions in their new-build packages, there’s an increased focus on smart-home technology automation and how AI can help. Some industry professionals foresee “smart power” becoming a bigger part of what drives the smart-home market. It is believed that AI will significantly influence the next wave of smart-home technology. Where current products require manual programming in order to be automated, AI and machine learning have the potential to enable solutions that provide true home automation. This has the potential to be an exciting development in the industry that can adapt and offer efficiencies based on a customer’s habits, usage, and preferences.
The continued development of AI technologies presents an opportunity for the construction sector to fundamentally reimagine its processes and operations. As more companies recognize the value of these tools, the industry will likely see a shift toward more data-driven, efficient, and innovative ways of working, ultimately benefiting both businesses and their clients.