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MHWC, RWC's sister organization providing manufactured home warranties to HUD-Code Manufacturers and Builder/Dealers, is excited to announce the launch of their newly redesigned website.

The streamlined menu is easy to navigate and the modern layout lends itself to a faster and better user experience. Have a look! Maybe you'll discover something new about the MHWC warranty. Our current and prospective members will find detailed info about our warranty products, instructions on how to become a member, resources for existing members, tradeshow schedules, FAQ, and can even contact us through one of the convenient online forms.

 

The RWC Member Services department has a new email address for members that need to return documents for approval or renewal:

membership@rwcwarranty.com

Feel free to use it if you have a question about what is needed for your new membership application or how to get your renewal finished. It’s quick and easy and your request will go to a team of advisors instead of just one individual for the fastest service possible. We are working harder on our end so you can focus on building homes on yours!

Hypothetical situation. Let's say you've been contracted to build a custom home by someone who was referred to you by a satisfied customer. This individual owns the land and is financing the project out of his own pocket. You are the general contractor with complete authority over the entire project. The single family home you're building is a typical design and requires nothing out of the ordinary. Construction proceeds without a hitch. Then, with the house about 80% complete, fire breaks out in the basement on a Sunday night. The fire department determines a homeless person had decided to camp out in the unsecured structure and started a small fire to keep warm. Of course, it quickly got out of control and now more than $200,000 in materials have literally gone up in smoke.

Your customer thought you were responsible for buying Builders Risk coverage as the general contractor. You were sure they had agreed to purchase a policy as the owner of the project. The written contract makes the general contractor, you, responsible for "all insurance." So you lose that argument. As someone who knew what they were talking about once observed, insurance isn't important until you need it. In trying to figure out what went wrong, you conclude that you have had to finance most of your projects in the past. That meant getting a construction loan from a bank. They won't lend a dime without proof of builders risk. In this case, there was no loan officer to dot all the i's and cross all the t's. Life is in the details.

Thankfully, this is only a hypothetical situation. Few professional builders would make such a mistake...right? Don't take chances. The RWC Insurance Advantage offers Builders Risk coverage almost anywhere in the United States for virtually any size residential construction project through Zurich - number one in Builders Risk insurance.

 

For more info or to get a quick quote:
www.rwcinsuranceadvantage.com
866-454-2155

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Over the past 18 months, Houzz collected data on thousands of kitchen renovations. Check out the highlights here:

$40k

the median price for a major kitchen remodel.

9 out of 10

homeowners replaced their countertops. Engineered quartz was the leading material, while granite came in second.

35%

of the appliances that were upgraded included high tech features such as wireless and smart phone controls.

89%

of homeowners hired a professional for their renovation project.

Three and a half decades ago, Tom, an old partner of mine, owned a sailboat, which he loved. Tom harbored his sailboat on the Chesapeake Bay about two and a half hours from our offices, and he used it for entertaining clients, taking his partners and staff on outings, fishing with friends, and sometimes just sailing for the pure joy of it. As he advanced through middle age, however, he found that his children were no longer kids, had developed interests of their own, and seldom wanted to sail on the bay. His wife, who was never much enamored of the boat, had grown to dislike it, and his friends had moved onto other hobbies. The boat was expensive to keep and always seemed to need repairs or maintenance. The physical exertion required to sail the boat had become harder for him to muster, which made his trips to Maryland less and less enjoyable as the years passed.

Eventually Tom concluded that it was time to sell the boat. He had located a buyer across the bay from where his boat was moored and planned to deliver the boat himself with one last sail across the Chesapeake. Tom stopped by my office early one week and asked me to clear my calendar for Friday to serve as his lone shipmate on that final trip. He told me it would be a long but exciting day and that a steak dinner would be waiting for us back at his house when we were finished. Tom was a mentor to me, a senior partner at our firm, and a genuinely good guy. I felt honored that he chose me to go on that last voyage, and I immediately accepted his invitation.

Friday came, and we left at dawn. By the time we usually started our workday, we were at the dock. It was cold for early October, and there was a strong wind blowing off the water and into our faces. I asked Tom which direction we would be heading, and he pointed right into the teeth of the wind to a spot of land across the bay that I could not see because of distance and the soupy conditions. In my imagination, this trip was to be a gentle ride with the wind at our back across calm waters under a sunny sky. Now it seemed impossible, and I muttered something to that effect. Tom untied a knot to loosen part of a sail and said, “It doesn’t matter which way the wind blows. What’s important is how you set your sails.” Tom could see I was puzzled, so he explained that we would have to tack across the water by positioning our sails so we could zig zag in the general direction of our destination without ever trying to move directly into the wind.

For the next six and a half hours I trimmed sail, kept shifting from one side of the boat to the other to help balance her, and tried to avoid the boom that would swing every time we changed direction. Eventually we sailed the “Lenore” into the marina that would be her new home and wearily returned to Harrisburg, Pennsylvania for cocktails and a steak dinner that was savored even more than usually because of our adventure at sea that day.

I have not done much sailing since then, and I certainly don’t remember enough about the trip to tack a boat for six and a half hours into a strong Chesapeake Bay wind. But I have never forgotten the way my friend described a principle that every sailor knows and that every business person ought to know: “It doesn’t matter which way the wind blows. What’s important is how you set your sails.”

Lately America’s builders have dealt with some challenging issues. Supply chain problems and labor shortages persist. Inflation and rising interest rates have decreased consumers’ appetites for new homes. Sometimes, running a business these days, and particularly a home building business, can feel like you’re sailing into the strongest gales of a wicked Nor’easter. But even if the wind is against us, we can still make progress if we trim our sails and take a different tack, and here are some strategies we can use to navigate the current tough economic climate.

Pay close attention to your margins. Rising supply and labor costs coupled with low pricing by desperate competitors put profit margins at risk. Avoid this trap and make sure you make money on every house you build.

Stay on top of billing and collect what is owed. Cash is the life blood of a company and leaving it with the bank or the customer longer than necessary can place undue pressure on your operations. A good approach in tough times is to bill early, bill often and be persistent.

Make customer satisfaction a priority.  Repeat customers and word of mouth advertising are worth their weight in gold. If you experience a slowdown, check in with old customers and double up on customer service. This investment of time and energy could lead to some immediate sales and plant seeds for future transactions when the economy loosens up.

Be creative. Some builders get too comfortable building the same product repeatedly. If you are in that rut, get out of it by learning what consumers want (or will soon want) and start building those products. Customer preferences for home size, lot size, floor plans, finishes, and a myriad of other variables change over time. Learn what your customers want, and creatively craft the homes of their dreams.

Protect your profit. Make sure that you are not overpaying for material, labor, or equipment, that you are not undercharging your buyers, and that you take reasonable steps to protect your bottom line. Well drafted sales agreements, appropriate liability insurance, and an insurance backed express warranty with a mandatory binding arbitration provision are essential elements of a well-run and profitable home building company.

RWC has four decades of home warranty experience, covering 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 expectations in your homeowners and provide a road map to resolving 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.

While the economic wind might be in our faces now, remember that it doesn’t matter which way the wind blows. What’s important is how you set your sails. Take RWC aboard with you, and let us help you successfully navigate these challenging times.

Have a great Fall & Winter!

If it is beginning to feel as though tuning into your favorite news outlet is akin to watching Chicken Little warn of impending doom, you are not alone.

When it comes to the economic reports tied to the real estate market the negative chatter appears magnified. It certainly seems as though there are a lot of Littles yelling “The market is crashing! The market is crashing!” All this rumbling correlates directly with rates going up and sellers losing, what they have perceived as, the power position.

Inflation, supply chain issues, staffing problems, rising interest rates, and noticeable increases in the cost of everyday necessities, are absolutely giving credence to these concerns. The pain of our current economic strain is evident throughout our day-to-day lives. Plus, for many, the impact of the Great Recession is still visible in the rearview mirror.

Based on these factors, it is logical to presume the Littles are correct. The evidence seems to align with the idea that the housing market is about to fail. Counter to this, there are data points which contradict the negative viewpoints. What we are seeing are pricing corrections in the market which will allow for the return of balance to our industry.

Prior to the pandemic the housing market was steady between buyers and sellers, however, it was acknowledged that a housing shortage was imminent. That existing shortage has remained relatively unchanged. In part due to the increased demand during the pandemic paired with the overall inability of builders to keep up. At present, the ratio of homes available to buyers in the market is still imbalanced in the favor of sellers.

Leading up to the Great Recession, there were more homes built than there were qualified buyers. Currently, the buyer’s market is much stronger and more economically sound than years prior. On one hand this proved astronomically advantageous to sellers during the pandemic buying spree. On the other hand, foreclosure risks have been significantly decreased because lenders held onto their stricter guidelines. Many homeowners are sitting on equity gains that will keep them in a healthy position.

Given this strength, positive equity will play a part in tempering the probability of a foreclosure boom. Additionally, the momentum of demand for homes is still in play. This is in opposition to the market stance in 2008 where significantly over mortgaged properties were common.

Comparing current buying rates to the pre-pandemic buying rates, it shows a less than 1% decrease. Yes, the market has cooled, however, and this is an opportunity for increased stabilization. Buyers will once again have a fair chance of getting the home they want and be able to do so without making risky decisions. Additionally, it is less likely that buyers will experience absurd bidding wars over homes leading to equity deficits.

Despite the negative economic challenges faced by families across the nation, the balance has not completely shifted. Holistically, buyers are fiscally healthy and unemployment rates remain low, which indicates sustainability is within reach. Achieving this does require leaning on lessons of our past while implementing new mindsets. Ultimately, to avoid a crash, course correction is necessary and merely indicates an acceptance that the tides are changing.

We’ve all experienced bad service at some point. Whether it’s slow or inept service at a restaurant, a business vendor that underdelivers, talking to an employee with a lackluster attitude about solving your problem, or my personal favorite, those automated attendants on the phone that create an endless loop of frustration. It’s no fun and it leaves a bad taste in your mouth for far longer than the original encounter lasted.

At RWC, we have been proud of our commitment to customer service over our 40 years in business – we think our service sets us apart from others in our industry – but… we also know that we aren’t perfect and that there is always room for improvement. So, we are thrilled to announce the creation of our brand new “Concierge Service” designed to help us step up our service to the next level.

This is not one of those trendy, yet frustrating “automated call centers” but an actual experienced human! Novel approach, huh? In charge of our Concierge Service will be none other than RWC’s Bryon Earhart. Bryon has been appointed RWC’s Customer Advocate, and he will use his 34 years of experience in the warranty industry to help your customer experience be as pleasant and fruitful as possible.

Many of you have talked with Bryon over the years and know that he is personable, knowledgeable and tenacious at resolving issues. He’s the man now tasked with spearheading our customer service improvement initiative and brings all his experience to help you, our valued member, get the most benefit possible out of your RWC membership.

Feel free to reach out to Bryon…

You can reach Bryon directly at 800-247-1812, Ext 2199 or bryon.earhart@rwcwarranty.com.

And of course, your Account Executive is still here to help, but with RWC, you now have a Customer Advocate anxious to provide you with Concierge Service.

Bryon may not be able to hook you up with tickets to the hottest Broadway show but he is your ticket to the best customer service around.

 

Reminder of What’s On Our Menu of Choices for RWC

More Options From Us Means a Better Fit for You

Pre-pandemic, it was not unheard of for items to occasionally go missing from a job site. Whether through an honest mistake such as a worker pocketing a tool he or she believed to be theirs, or a genuine theft of materials, losses nonetheless would ultimately be a costly detriment to builders and developers. In post-pandemic culture, the landscape has become a bit drier due to product shortages and supply chain delays. Builders have recently seen large loads of valuable materials and appliances being stolen from job sites.

There are a few specific items that tend to “walk off” a construction site more often, and end up on resale platforms such as Facebook Marketplace, Craigslist, and MaterialsXchange.

COMMONLY STOLEN ITEMS FROM A JOBSITE:

In addition to the inherent inconvenience of missing materials, theft causes additional situations to arise in a domino effect. One of the most damaging resulting consequences on a job site is schedule delays. Most items on a job site are necessary, and when they go missing, they need to be replaced. If you are lucky, they are easily and quickly obtainable; however, in some cases, they are items that need to be special ordered. The same can be said for heavy machinery and appliances. When they go missing, it can take days, weeks, or even months to replace them. If the job can’t continue, the entire project timeline is knocked off course. If the project can’t reach milestones because the equipment is missing, the contractor is in danger of not receiving scheduled payments. This means they may not be able to pay subcontractors for their work; and the next thing you know, a payment dispute has broken out. Not to mention the potential tarnishing of the contractor’s reputation with clients and peers.

Stopping thieves entirely may not be possible, but there are ways to mitigate the issue. Unfortunately, most theft happens internally, and subcontractors working on several sites are aware of potential targets. Prequalify subcontractors prior to retaining their services to be sure they’re reputable. Contractors that steal are often repeating offenders, so there’s a good chance another contractor might know them and be more than willing to warn others in the business. Also, be sure to secure the job site. This can be done by installing a tall fence, floodlighting, or hiring night security to watch the site when the workers have finished for the day.

Consider protecting tools and equipment with GPS trackers and geofencing. (If this technology term is new to you, geofencing is a location-based technology in which virtual boundaries can be assigned to a geographical area in the real world. These virtual perimeters can be displayed on an indoor map and can trigger actions or alerts on entry or exit of a tagged item within the specified area.)

It is also beneficial to establish a security protocol for the job site which clearly outlines what isn’t acceptable on a project and what is. It’s helpful to mark items with notes such as “not allowed to remove scrap for personal use.” Make sure to distribute information so that all the subcontractors are aware of expectations to prevent confusion or misunderstandings.

Another obvious but effective solution is to install a security camera. They are a great way to deter a thief from stealing from a job site and can also offer police valuable information should a theft occur regardless of any precautions that have been taken. And, since most thefts occur from within, there’s a good chance the thief will be recognizable to those running the job site. If it is not possible to position the cameras to get a view of the entire site, it’s best to aim them toward lumber and materials piles, heavy equipment, and entrances to the site as well as the project that is under construction.

In light of the unfortunate reality that not all job site theft is avoidable, it is highly recommended that the contractor carries a good builder’s risk policy, such as those offered by RWC Insurance Advantage. Information on the programs offered can be found on our website: https://rwcinsuranceadvantage.com/.

Prior to work on a job site, crew members are carefully trained and certified in safety measures. However, no matter how many precautions are taken, it’s a fact that accidents do happen. And one of the most frequent power tools involved is often the saw. It’s certainly worth a few moments to brush up on some simple rules of thumb for best practices when operating saws of any kind, offered in this article (reprinted) from NAHB.

Saws are among the most common power tools used on a home building site. When used properly and maintained in good working order, saws are quick and efficient tools to complete the job. But serious injuries can result if the proper safety precautions are not followed. According to the National Institutes of Health, there are more than 30,000 table saw injuries annually. The most frequently injured body parts are lacerations to the fingers and hands.  Medical costs for treatment of table saw injuries are estimated at $2 billion or more. Although table saws cause the most injuries, care must also be taken when using circular, miter, reciprocating and any other kind of saw, including hand and, of course, chainsaws. When using saws, remember the following tips to ensure safety.

You’re a general contractor, a GC. Like it or not, you are responsible for everyone’s safety at your jobsites. That means anyone who may be there for any reason. Even trespassers who trip and fall over some debris left by your demo guy. That’s right. Even if you post “NO TRESPASSING” signs, you have some degree of care for any member of the public who is at your job site for any reason and gets hurt. What can I say? Life isn’t fair, then you get sued.

Any human activity involves risk. To really prevent having accidents at your jobsite you’d have to go back in time to that day when you decided to become a GC and decide to do something else. Until a time machine is invented, you’ll need General Liability (GL) insurance and you’ll want all your subcontractors to be adequately insured.

Why is GL insurance so important?

Let’s go back to the sloppy demo contractor who left the debris lying around for the trespasser to trip over.

If that demo guy doesn’t have insurance, your GL company will not only have to pay this claim; they will add the demo classification to your policy and charge you the extra premium. It’s hard enough to be sure your subs have enough insurance even when you require certificates each year.

For example, if one of your subs has a claim working for someone else and it reduces his/her limit of liability, that certificate you got a few months ago is suddenly out of date.

It says your subcontractor has $1,000,000 for each accident. Only now, the claim has reduced this amount to $500,000. Suppose one of your subcontractors had their GL coverage canceled or nonrenewed? If you’re listed as an additional insured on their policy you should receive a courtesy notice of cancellation… provided you asked for one and insisted it be shown on the certificate.

Either one of these possible scenarios can lead to a claim being made against your GL.

But what about that trespasser? Why should he be compensated for getting hurt while being illegally present on your jobsite? The answer has to do with the degree of responsibility you have to the public. Think of your own home as a jobsite. Let’s say you invite friends over to a Memorial Day picnic. You want them to be there. The last thing you want is for one of them to trip and fall over your garden hose laying in the yard because you failed to put it away.

The same is true for the delivery person and the guy who reads your gas meter. Then there’s the door-to-door salesperson or survey taker. You’re not as happy to see them, but you wouldn’t call 911 when they show up either. The one thing all these people have in common is a right to expect that you keep your yard, sidewalk and steps free of objects like your garden hose, stray toys and other debris when they come calling.

Even a burglar or a vandal is owed some degree of care. You can’t use excessive force to restrain a burglar and you can’t take the position that a trespasser should just watch their step if there is an unprotected hazard on your jobsite.

Failing to understand these things and take steps to minimize the hazards at your jobsite creates liability. Your subcontractors are your first line of defense against lawsuits.

Here are four things you can do to make sure your subcontractors are helping to reduce your chance of being sued:

• TRIP AND FALL HAZARDS that can’t be eliminated must be marked with signs, cones, reflective tape, etc., in such a way that they are obvious to the public.

• Require your subs to provide CERTIFICATES OF INSURANCE each year. These should show your subcontractors have their own GL coverage with limits of liability equal to yours.

• Insist that they name you as ADDITIONAL INSURED on their policies.

• Make sure they HOLD YOU HARMLESS in your contracts with them.

Never let up on your efforts to hold your subs to this high standard and to practice good jobsite preventive maintenance.

by Doug Davis, Eastern Atlantic Insurance Company