Residential Warranty Company, LLC (RWC), HOME of Texas and MHWC will be attending the 2017 International Builders Show (IBS) in Orlando, Florida January 10-12, 2017. Be sure to stop by booth #W5571 to learn why new home warranties are an essential ingredient for your business. Whether you are a builder, remodeler or manufacturer, providing a new home warranty is a great way to enhance the value of your homes, strengthen your reputation and get a competitive edge in the marketplace.

As you know, it’s not strictly business at IBS. Before you head off to the House Party or the Spike Concert, have some fun with RWC and try your luck at our Wheel-O-Warranty prize wheel! Not only will you walk away with one of many great prizes, but you will also be entered into our grand prize drawing for a $1000 Visa gift card. Celebrate a brand new year with the innovative leader in new home warranties, RWC!

The online validation process launched October 20th, 2014 by Residential Warranty Company, LLC (RWC) and HOME of Texas (HOME) is, by all accounts, a success! Billed as the next step in the home warranty companies’ modernization plan, the online home enrollment validation system streamlined the process to save time for home warranty members and their homebuyers.

Residential Warranty Company, LLC (RWC), a leading provider of insured home warranties to the building industry nationwide, and HOME of Texas, RWC’s Lone Star State affiliate, have been fairly busy lately enhancing the quality of their home warranty programs and the efficiency of their systems for members. This trend continued as RWC and HOME moved to an online process for home enrollment validation.

Previously, the process had buyers sign paperwork at closing. After RWC/HOME received the signed copy and warranty fee, a validation sticker on a postcard was sent via regular “snail mail.” Depending on how quickly RWC/HOME received the information back from the closing, how timely the enrollments were processed, and how quickly the mail was delivered, it could take several weeks before a validation sticker arrived in the buyer’s mailbox.

Now, homeowners can simply go online to confirm their home warranty coverage. For convenience, homeowners can either print their warranty documents or save these documents as PDFs on their computer. They no longer need to wait for any confirmation to arrive in the mail and are spared the hassle of having to request a duplicate if the original gets lost. Also, and probably best of all, homeowners will enjoy a much speedier confirmation of their new home warranty whenever they choose to login via Warranty Express to retrieve their documentation (warranty book, closing document with info including validation number, effective date of warranty, term of coverage, and any applicable addenda). What’s more, they are able to view the warranty book online that was issued for their home in the future.

For more information on Warranty Express and its benefits, click here.

All of RWC’s home warranty programs 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 RWC’s Limited Warranty Program.

A good example can be found in this case study. RWC had issued a warranty on a home that was in Year 1 of home warranty coverage, and the homeowners filed a lawsuit against the builder. The builder was well-equipped to defend himself with the warranty book, the application for warranty and his own contract, which included language that made the RWC builder 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 home warranty performance with RWC. Prior to arbitration, the warranty provides for informal mediation. The parties agreed to use RWC’s mediation to try to settle the disputes about the alleged house warranty defects. RWC became actively involved mediating between the homeowners and the builder. Through this mediation, communication between the homeowners and the builder has improved and several items have been amicably resolved. We are encouraged that most, if not all warranty items, will soon be resolved in the same way. At the conclusion of mediation, if any items remain unresolved, the homeowners and builder will 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.

*Note that the mandatory arbitration provision is removed by the HUD addendum, and thus mandatory arbitration does not apply to home warranties placed on HUD homes.

As a real estate professional, why should you care about new home warranties? What’s in it for you?

Here’s 5 perks of having a solid RWC home warranty in place - perks that benefit both you, the builder, and the potential buyer:  

1. It Just Looks Good
   As a Real Estate Agent, you know the market for new home construction sales is both competitive and complicated. Not only are builders competing against each other for sales, but also against the resale and foreclosure markets. A new home warranty is a distinguishing feature that makes a new home even more attractive to potential buyers.
2. Quality
   Obviously, the home buyer must qualify under today’s rigid requirements, but the builder may also need to meet certain criteria. Whether a home is financed by a conventional, FHA or VA loan, be assured that a home built by an RWC member is constructed with quality.
3. Buyer Peace of Mind
   Written, insured warranties provide recourse for repairs for your buyers. If the builder is unable or unwilling to correct warranted defects, the Warranty Insurer steps in. Without a warranty, in these uncertain times, a homeowner might be forced to “go it alone” in a time when the average major structural defect exceeds $30,000.
4. Protection
   Real Estate agents benefit directly from the warranty in the event a defect does occur. The warranty ensures that either the builder or the home warranty company will rectify warranted defects.
5. Assurance
   Warranty members have passed stringent screening criteria for professional building ethics, financial stability, and technical competence. As a result, agents are better assured that the home is built by a more qualified builder.

And the benefits of RWC’s home warranties for real estate pros don’t stop there! Discover additional reasons to secure home warranty coverage with RWC.

Yes, our builder warranties cover structural defects! That structural coverage is just one of the many benefits of RWC’s home warranty programs. Providing an RWC warranty on your homes reduces your liability and assures you that your homeowners are protected for covered structural defects for the entire term of the home warranty.

RWC offers two different types of structural coverage: Major Structural Defect (MSD) coverage and Designated Structural Element (DSE) coverage. During the coverage periods when the insurer is the warrantor, the warranty resolution process includes a free fact-finding inspection by a licensed, professional engineer. After that inspection, RWC determines whether the alleged defect is covered. If coverage is granted, then RWC repairs, replaces or pays the reasonable cost of repair or replacement of the affected structural component.

Here is one case study demonstrating the home warranty coverage we provide and the manner in which we handle homeowner complaints.

Major Structural Defect (MSD) Case Study:

This home was in year 10 of coverage. The homeowner claimed that “the garage foundation has failed, causing cracks, sinking of floor and walls.” He also complained that the damage did not allow a door to function properly.

RWC retained a licensed, professional engineer and scheduled him to perform an inspection of the home. RWC uses the observations and opinions of engineers to make coverage determinations when homeowners allege that their homes have an MSD or a defect in a DSE.

The engineer found and reported that there were foundation wall cracks along the perimeter of the garage and indicated that the cracks were particularly obvious in the area of the main door. Elevation readings indicated that the garage had experienced significant differential settlement and that settlement was an ongoing problem. The engineer gave RWC his opinion that the garage foundation wall had failed. The combination of failure of a structural element, actual damage to a structural element in the form of cracks in the foundation wall, and an adverse effect on safety (the garage main door not functioning properly) satisfied the Major Structural Defect criteria. Thus, we granted the claim.

Next, RWC obtained a repair plan from the engineer. The plan called for the placement of seven hydraulically-driven push piers to stabilize the downward vertical movement of the garage’s foundation wall.

RWC then hired a contractor to visit the home to provide an estimate based on the engineer’s repair plan. RWC offered a monetary settlement to the homeowner in the amount of the contractor’s estimate. The homeowner accepted the offer and executed the required Full and Final Release. The homeowner was satisfied and the claim was resolved without requiring the builder to take any action or pay one dollar to the homeowner.

This is just one example from our nearly 100,000 Warranty Resolution files that shows how homeowners and builders alike are protected by RWC’s home warranty coverage.

Homeowners receive assurance that their homes will be fixed if they experience defects covered by the builder warranty, and builders have their customers satisfied by an experienced and capable Warranty Resolution staff at no cost to them – a great value to both parties!

As hopefully you are aware, all of RWC’s home warranty programs include our effective home warranty resolution process which includes mediation and, if needed, formal arbitration. We are asked from time to time if the system works...or in other words, if the warranty is “worth it.” So from time to time, we like to highlight a specific case study which shows exactly how this process benefits you, our member.

In this case study, the home was in Year 1 of home warranty coverage and was financed through VA/HUD. The homeowner’s request for warranty performance stated: “The duct work is making continuous knocking/ticking noises during every heating and air conditioning cycle.”

During RWC’s mediation, the builder informed RWC that they spent more than 40 hours “without exaggerating” trying to find the ticking while opening up the ceiling, and there definitely was not oil canning. The builder concluded that he had exhausted all efforts. RWC declared the issue unresolved and referred the homeowner to the warranty’s arbitration provisions.

The homeowner completed and returned the arbitration forms and paid the arbitration fee of $950.00. The parties to the arbitration were the builder and the homeowner.

The arbitrator determined: “Residential Warranty Company standards provide that with regard to ‘excessively loud notices’ in ductwork, such ductwork will be adjusted if necessary to eliminate noises caused by oil canning. Therefore, parties during the arbitration agreed in that the reported noise problem is currently not audible. The homeowners stated that they have, in fact, not heard it for some time, and not at all during this air conditioning season. The request of the homeowner is ‘Not Covered’ according to the warranty book. No repairs or other further remedies are necessary for a problem which both parties agree does not currently exist, and one party claims to have never existed. Based upon the above findings of fact, and the award in favor of builder, all costs are to be paid by the homeowners.”

Not only did the builder have a successful award, but he did so in a very timely, economical manner. Additionally, it was not necessary for either party to be represented by counsel.

This is a real case and a perfect example of how the builder’s warranty standards prevent unmerited complaints and support the value of RWC’s resolution process.

Learn more about RWC’s home warranty plans and builder benefits!

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

• 1 Year of Coverage on Workmanship & Materials.
• 2 Years of Coverage on Selected Portions of Mechanical Systems.
• 5 Years of Coverage on Major Structural Components.
• Fees are based on square footage, type of construction, and usage.

5 Year Detached Garage Warranty

• 5 Years of Coverage on Designated Structural Elements.
• Includes specific and measurable standards to evaluate structural defects.

1 Year Renewable Structural Warranty

• An innovative approach to written warranties available under the trademark name of Residential Structural Warranty.
• 1-year structural coverage is available on designated structural elements.
• Nominal administrative fee for the first year of coverage.
• Option to pre-purchase future years of coverage.
• Additional years of coverage are offered directly to homeowners by RSW.

Conversion Warranty

• (For residential projects being converted from commercial buildings).
• Option A: 2 Years of Coverage on Workmanship & Materials.
• Option B: 1 Year of Coverage on Workmanship & Materials and 5 Years of Coverage on Major Structural Components.

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.

To continue its history of innovation and competitive pricing in home warranties, Residential Warranty Company, LLC (RWC) established its exclusive Incentive Program. Created over 25 years ago, RWC’s unique Incentive Program offers its members big rewards for good claims experience, providing yet another reason to choose RWC as a home warranty provider!

Since the creation of its Incentive Program, RWC and affiliates are pleased to announce that they have distributed almost $19.6 million (on the brink of $20 million!) in incentive distributions back to members.

The Incentive Program is a great way for qualifying RWC members to effectively reduce their overall warranty costs by maintaining a high level of quality construction and customer service.

Benefits of joining the Incentive Program include:

• Incentive members receive the best rate possible.
• The annual re-registration fee of $295 is waived for Incentive members, which saves an additional $1180 in years 2-5 of membership.
• The value of the incentive distributions greatly reduces the effective cost of the warranty fee.
• Enrollment rates are locked-in for 5 years with the standard warranty (Customized State Warranty rates may be adjusted annually, however).
• Membership fees are waived for years 2-5, generating a savings of $1180!
• In years 6-10, members receive cash distributions, assuming only minimal claims experience.

Joining the Incentive Program is the best way for RWC members to maximize their dollars and reap the rewards of quality construction and customer satisfaction. RWC members enrolling at least 20 homes or $2 million in sales volume annually are eligible to join. To determine eligibility, contact RWC. Also, available upon request, is a free computerized analysis illustrating the ins and outs of the Incentive Program. To access this free analysis, email sales@rwcwwarranty.com or call 800-247-1812, Ext 2149.

Join the Incentive Program today to cash in on major rewards!

ABOUT RWC

Residential Warranty Company, LLC is an innovator in the warranty industry. Builders seeking options in home warranty coverage, sensible home warranty protection, and assistance in dealing with customer service, choose RWC. In business for over 30 years, RWC has warranted over 3 million homes and its Insurer is rated “A- (Excellent)” by A.M. Best. An extensive “menu of choices” in both home warranties and general liability insurance is available, enabling builders to reduce their liability and increase the marketability of their homes. Become a member today!