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There’s an old saying that insurance doesn’t matter…until it does. General liability, GL for short, is fundamental to the business world. Most everyone knows that GL protects you from suits and claims brought against you by people injured on your jobsite, or homeowners who allege damage caused by defects in the way a house was built. Beyond this, things get a little fuzzy, which leads to some creative myth-making.  Here are the top 5 GL myths we hear all the time:

Counting Down the Myths

#5 - I have Builders Risk. I don’t need GL, do I?

Builders risk only covers your building materials at your jobsites while during construction. It’s property coverage. With limited exceptions on some policies, there is no coverage for a passerby who trips and falls over a piece of scrap lumber that spilled onto the sidewalk and no coverage for construction defect claims later on.

#4 - My subs have GL, so I don’t need it, or do I?

Your subcontractors better have GL, or their claims become yours. Even if they have their own coverage, you can still be liable for some claims involving your subs. As the general contractor, you’re responsible for overall safety at the jobsite. Are you making sure your subs keep the sidewalks free of scrap lumber and other debris? Even if you police the jobsite every day, when was the last time you required your subs to provide a certificate of insurance? Are you named additional insured on their GL policies? Do they hold you harmless in your written contracts with them? All these things can create liability for you if neglected.

#3 - I do some engineering and design work on the side.  My GL covers that, right?

Wrong. If you provide any professional services, you need professional liability insurance. GL doesn’t cover inaccurate advice, misrepresentation or claims involving bad faith.

#2 - I only build one home a year.  I’m too small to need GL, aren’t I?

I’ll answer this question with a question – the last time you drove down any highway, how many billboards advertising personal injury law firms did you see? We live in a highly litigious society. Any business, no matter how small, how new, or how experienced is vulnerable to suits or claims by members of the public. Why take chances with your livelihood?

 

AND THE #1 GL MYTH – I’ve been in business for 20 years and never had a claim. Why should I pay for GL now?

I could answer this by simply saying read #2 again. The fact is you don’t have to purchase GL unless someone else requires it. Usually, some other business or governmental entity wants to see proof that you have GL. Why? To avoid having to deal with suits or claims that you’re responsible for. It’s called contingent liability. In reason #4, if you hire a sub who doesn’t have GL, you are responsible for his claims while working for you because you failed to make sure he had the necessary insurance. Not fair you say? Show me fair.

I hope this little countdown of GL myths helps to convince the previously unconvinced that having the proper GL coverage for your business is just as important as laying the proper foundation for a home.  Anything you build on top of a shaky foundation is bound to fall sometime. For the riverboat gamblers out there nothing I say will be convincing. For the great majority of you, it might be time to take a look at your GL coverage needs. We can also handle your builders’ risk while we're at  it. rwc logo

Call us at 1-866-454-2156 or visit us at https://rwcinsuranceadvantage.com/products/general-liability/ for a free, no obligation quote.

[vc_row][vc_column][vc_column_text]www.nahb.org and www.newhomesource.com

Before a homeowner goes to settlement on the purchase of a newly constructed home, you and the homebuyer should do a walk-through to conduct a final inspection. This walk-through will provide an opportunity to spot items which may need to be corrected or adjusted, educate the buyer about the way the new home works and what their responsibilities are, and answer any questions the homebuyer doesn't understand.

How Things Operate

When you buy a new appliance such as a washing machine, you usually have to read the instructions before you understand how to use all of the features. With a new house, the buyer will be overwhelmed with new appliances, systems, and maybe even ‘smart’ features. Not only will it help immensely if someone takes the time to show them how to operate all of these components and gadgets, but it shows that you care about the home and take pride in your finished craftmanship.

Maintenance Responsibilities

Part of your walk-through should be educating the buyer about maintenance and upkeep responsibilities. When you provide your buyers with a ten-year warranty, workmanship and materials are covered for one year. However, such warranties do not cover problems that develop because of failure to perform required maintenance. RWC/HOME of Texas provides a clearly written warranty booklet explaining what’s covered, what’s not covered, the responsibilities of new homeowners, and actions required citing specific guidelines and standards.

Builder Visits During the Year

Each builder is different, however, typically builders schedule two visits during the first year — one near the beginning and the other near the end — to make necessary adjustments and to perform work of a non-emergency nature. Explain to your client that you won’t be rushing out immediately for a problem such as a nail pop in your drywall. Such problems occur because of the natural settling of the house and are best addressed in one visit near the end of the first year.

Your Inspection Checklist

Creating a checklist when inspecting the house is key to organization and cognizance. The list should include everything that needs attention, and you and the homebuyer should agree to a timetable for repairs. Explain to the buyer that it’s best to remedy problems before they move in, because it is easier to work in an empty house. However, some items may have to be corrected after move-in. For instance, if the walk-through is in the winter, landscaping adjustments may be delayed until spring.

It is important to be thorough and observant. Examine all surfaces of counters, fixtures, floors and walls for possible damage. Sometimes disputes arise because a buyer may discover a gouge in a countertop after move-in, and there is no way to prove whether it was caused by the builder's workers or the buyer's movers. Many builders ask their buyers to sign a form at the walk-through stating that all surfaces have been inspected and that there is no damage other than what has been noted on the walk-through checklist.

In preparation for the walk-through and to ensure everything goes smoothly and efficiently, educate your homebuyers with these walk-through “Dos and Don’ts”.

DO

DON’T

On that note, the homebuyer will most likely ask a lot of questions during the walk-through and take notes on the answers. Be patient. This is the dream home they’ve been anxiously waiting to move into for months and they want to make sure everything is up to par and in perfect working order. It is important to view the walk-through as a positive learning experience that will enhance the enjoyment of your client’s new home for years to come. And furthermore, a genuine, caring and thorough home builder will get all the praise and kudos through word of mouth - the most powerful (and free) form of advertising![/vc_column_text][/vc_column][/vc_row]

Due to advancements in technology and the increasing demand for affordable homes, modular construction continues to increase in popularity. In fact, modular home construction can often go toe-to-toe with, or in some cases even out-perform, site-built homes.

There are several benefits of modular construction for both the contractor and the homebuyer. Speed is a big factor. Since each phase of construction is carefully planned out, there are few last-minute problems or conflicts that will result in delays or plan revisions. Modular homes are typically built 33% faster with greater efficiency than a site-built home. Think about the countless individual pieces of material a site-built home needs from start to finish. Of course, the prefabrication phase uses many of these same materials, but once out of the factory, a modular home requires only connecting several large-scale components. At this point, delays including supply and delivery issues, are often kept to a minimum.

Prefabrication can also reduce the cost and time to build a home by a significant amount in several ways. First and foremost, factories are climate controlled, which means there are no weather-related construction delays adding time and money to the project. Secondly, there are also no cost over-runs from “no-show subs”. Subcontractors are already there in the factory, eliminating the need to find reliable skilled tradesmen. And third, materials are generally bought from suppliers through volume purchasing, thus getting better prices all the while controlling inventory with less waste.

Speaking of wasted materials, stick built homes tend to be less environmentally friendly than their modular counterpart. According to a National Association of Home Builders (NAHB) study, an estimated 8,000 pounds of waste is created from the construction of a 2,000 square foot home. The majority of that is wood, cardboard, and drywall and almost all of that waste ends up in landfills. Conversely, any extra materials or waste from a modular home is recycled.

There is however one thing that both modular and stick built homes have in common, and that is the need for a written insured new home warranty. As an RWC/HOME of Texas member, you know first-hand the benefits of providing a warranty on your homes. The construction industry comes in all shapes and sizes and so do warranties. Be sure to check out all of our risk management services and warranty products or call your Account Executive for more information.

You and your crew have been working hard these past few months. In fact, you’re ahead of schedule. Then, you get a call from one of your jobsites. A woman tripped over a piece of scrap lumber and fell on the sidewalk in front of one of your nearly finished houses. None of your crew saw it happen since they were working inside. Your jobsite supervisor offered to call 911, but the lady seemed more embarrassed about what she described as her “accident proneness” and politely refused the offer. After that, she went on her way. No one bothered to get her name or contact information. You heave a sigh of relief and think all’s well that ends well. Still, you can’t shake the feeling; is there anything more you should have done?

Unfortunately, there isn’t much you can do. What’s the use reporting that an unknown woman fell at one of your jobsites, refused medical attention and disappeared. However, that doesn’t mean this isn’t a Premises / Operations claim under your General Liability policy. Many injuries take time to manifest indications of how serious they really are. The person can be in mild shock and truly believe they aren’t hurt. As they begin feeling pain, sometimes days later, they go to the ER and file the claim under their medical insurance. The medical insurer discovers where the injury happened and eventually seeks reimbursement against your general liability company.  Now you may have to explain why nothing was reported. This could impact your renewal pricing. If the claim spirals into a really large loss, you may even face nonrenewal.

All this can be avoided by establishing and following a simple procedure for dealing with incidents involving the public. Whether they happen to a person or their property, the following suggestions may serve as a general guideline to assist you in setting up an Incident Reporting Procedure:

As soon as you learn of any accident or incident involving the public find out if anyone is injured.

• If someone is hurt, call 911. Stay with the person until first responders arrive and follow any instructions they may give.

• Don’t move the person unless you have to in order to protect them from further injury.

• If you administer first aid, make sure you, or someone you know is competent to do so.

• Don’t admit guilt or accuse anyone.

• Your focus is to keep the injured person calm and make sure they get the emergency medical attention they need.

• If the person refuses medical aid, don’t try to force them. Try to get their name, phone number and address, but don’t insist if they prefer not to talk to you.

• If someone’s property has been damaged, call 911 if first responders are needed to prevent the accident from getting worse - such as a fire spreading.

• Try to get the names and contact information of any witnesses. Keep in mind these may include neighbors or passersby.

• Without putting yourself or others at risk, do what you reasonably can to prevent further injury to people or damage to property.

• Contact your general liability insurance company as soon as you can. Give them all the information you have gathered.

• Put your Incident Reporting Procedure in writing. Make sure everyone in your organization is aware of it. Review it often at periodic safety meetings.

To sum up, a premises/operations claim is a claim under general liability when a member of the public is injured or their property is damaged at any place related to your business over which you have direct, or indirect control.* The extent of injuries or damage may not be apparent at the time of the accident, but knowing as much as possible as soon as possible can be critically important when and if the accident develops into a claim.

WANT TO EARN UP TO 25% OFF YOUR GENERAL LIABILITY PREMIUM?

If you are insured with the RWC INSURANCE ADVANTAGE, having a written Incident Reporting Procedure as part of a formal safety program can qualify you for significant discounts.**

For more information, visit our website: rwcinsuranceadvantage.com. Or if you’d prefer speaking to one of our licensed agents, give us a call at 1-866-454-2155.

*This generally describes a claim for premises/operations third party liability damages. The various terms, conditions and exclusions in the General Liability Policy must be established to determine if a claim is, in fact, a covered loss.

 **Discounts are subject to all other underwriting criteria and are not guaranteed.[/vc_column_text][/vc_column][/vc_row]

Do you know your Account Executive? Are you aware of everything that your Account Executive (A.E.) can do for you? If you answered no to either of these questions, it is time to get acquainted!

Each state is assigned a specific A.E. who is more than just a product salesperson. You may have only interacted with one another when you initially signed up to become a member. Since you may have discussed your initial enrollment process with them over the phone, it is not always easy to recall with whom you spoke. To find your specific representative, you can call into our main office at 800-247-1812 (Texas: 800-445-8173) to inquire or visit our website and click the "Find Your Account Executive" link within the Builder tab's drop-down menu.

Your A.E. serves as more than an initial contact to guide you through the process, they are also your liaison and program concierge. Their role is to help you develop a suitable program for your business. As a member, you have access to a full array of programs and options. For example, if you desire to obtain a quote for liability insurance, wish to offer appliances coverage, or need additional training set up for your team, your A.E. can make these arrangements.

As the end of the fiscal year approaches, common practice dictates that a performance evaluation analyzing the prior year will be completed. Ultimately, it is a time in which new methods or ideas may be slated for implementation with the intention of improving the overall corporate health. Setting aside time to review your warranty coverages and comparing how your business has developed or changed can be a vital part of this process, the purpose of which is to aid in ensuring that a thorough evaluation has been considered. Since businesses can fluctuate from year to year, RWC/HOME recognizes that your initial warranty options may no longer work as a ‘one-size-fits-all’ solution. This is where your Account Executive can work with you to develop the best plan which complements these fluctuations.

If the timing for this sort of evaluation is currently not quite appropriate, keep in mind that your A.E. will periodically be reaching out to you via phone, email, or mailings. However, you do not have to wait for them to contact you to initiate the line of communication. When something from RWC/HOME passes over your desk, let it serve as a reminder to get in touch. Once it is time to think through all the ways in which your business may have developed or changed after your initial enrollment, your A.E. is your best resource. Setting a meeting with your RWC/HOME Account Executive will allow you the opportunity to review each of the servicing options at your disposal. Of the tools in your arsenal, the relationship you develop with your representative is a key component. Remember that they are your partners, meant to serve as a support system for your company, now and into the future.

Tifanee McCall MHWC account executive receives award from BSCThe Building Systems Council (BSC) Specialty Awards recognize one BSC builder, manufacturer, associate, and young professional for their contributions to the council, NAHB and the housing industry along with their involvement with civic or charitable organizations. Award winners demonstrate excellent business practices while providing outstanding service to his/her customers.

This year, one associate council member has stood tall amongst the rest. The winner of the 2018 Building Systems Councils Associate of the Year is Tifanee McCall of RWC/MHWC. Daniel Mitchell, Owner Eagle CDI, Inc. and Vice Chairman of NAHB's Custom Home Builders Committee presented Tifanee (pictured right) with her award at the recent NAHB Building Systems Summit in Knoxville, TN. Tifanee has been a BSC member for over a decade and currently serves as the council's second vice chairman and chairman of the membership and communications subcommittee. Kudos, Tifanee!

Map of USAWarranties come in all shapes and sizes and if you are looking for something besides the "traditional" new home warranty, RWC's Customized State Warranty (CSW)* is the answer! This warranty is the most unique and specialized new home warranty program in the industry. Each customized warranty is crafted specifically to meet each state’s statutes regarding new home warranties. The Builder’s liability is limited and individual state requirements for coverage are included, as applicable. RWC’s insurer covers warranted structural failures from day 1 throughout the entire warranty term.

For more information visit rwclive.wpengine.com and click "Warranties - State by State" under the Builder tab. You may also email sales@rwcwarranty.com or call 800-247-1812 x2149.

*Not available in AK, CO, HI, NJ & TX

Why do bad things seem to happen most on Monday mornings? We even call it “Blue Monday.” Take the builder, for example, who wasn’t named Additional Insured on his exterior painter’s general liability policy.

Our builder came to work one fine Monday morning to discover a voice-mail. His painter had over-sprayed a dozen parked cars in a lot across the street from his three-story townhouse project that was nearing completion. It happened on Saturday, which was windy. Too windy for spray painting three floors up. The cars belong to a pre-owned Corvette dealership. Each Corvette is worth an average $40,000. The estimated cost to re-paint all twelve is over $104,000. The painter admitted he’d messed up big time and lamely explained rain was forecast for the next four days, so he decided to “make hay while the sun shined.”

Our builder’s subcontractor was obviously at fault. Our builder had no part in this loss. When he hired the painter he expected he was dealing with a professional who knew his job. Yet our builder’s general liability policy, not the painter’s, is going to pay the claim. Our builder’s insurance company, not the painter’s, is going to defend him in the lawsuit soon to be filed by the Corvette dealership. They are claiming loss of market value now that they have to disclose to customers that their inventory had been damaged. This is going to get ugly and consume large amounts of our builder’s time. His insurance company may not renew his policy. Why? Simply because our builder was not named Additional Insured on the painter’s policy. So, what’s so important about being named Additional Insured anyway?

When you require your subcontractors to list you as Additional Insured on their general liability policies, you become entitled to insurance coverage benefits under their policies. Additional Insured status is most often used in connection with an indemnification agreement, also known as a hold-harmless clause. Hold harmless clauses are common in properly executed contracts between you and your subcontractors.* Under a hold-harmless, your subcontractors agree not to hold you responsible for their negligent acts which may happen while they are working for you. Without you being Additional Insured on your subcontractors’ policies, you can be brought into any suit resulting from your subcontractors’ negligent acts. Without a contract clearly holding you harmless, your general liability insurance company may have to cover the loss and defend you if you are sued. They may seek reimbursement from your subcontractors’ insurance companies, or the subcontractors themselves. Your insurance premium could increase due to the greater exposure, or your insurance company may even decide to not renew your coverage.

Additional Insureds! Hold-harmless clauses! Contracts! Maybe every day is Blue Monday when you have to deal with such things. Consider this, however; why jeopardize your insurance coverage because an incompetent painter decided to use a spray gun on a windy day?

The RWC Insurance Advantage is committed to providing you with the best possible general liability insurance protection. But, we need your help. Here’s a checklist:
(1) Review your contracts with all your subcontractors.*
(2) Are you named Additional Insured on all their general liability policies?
(3) Do they all hold you harmless for all claims while working for you?
(4) Do you obtain up-to-date certificates of insurance every year from each one?

If you have questions about this article or would like us to review your general liability insurance needs, we’d like to hear from you. Contact us by email or call us at: info@rwcinsuranceadvantage.com or 866-454-2155

Make Blue Monday a little less blue.

*Please consider consulting an attorney if you need assistance in drafting contract language. This article is intended to help you better understand general liability insurance terms and coverages. It is not to be construed as legal advice. Terms and conditions of various insurance company policy forms may vary.

RWC Insurance Advantage (RIA) recently launched a new website and if you haven't checked it out yet, we encourage you to do so! RWC Insurance Advantage is exclusive to members of the RWC and HOME of Texas warranty programs. Members can now request a quote, apply for coverage or request certificates all from their computer or mobile devices. Here's what RIA offers:

General Liability Insurance* - General Liability is insurance that protects you from a variety of claims including bodily injury to members of the public and damage to property belonging to others that arise out of your business activities. RIA can offer options in the form of an Occurrence Policy or a Claims Made policy. Please visit our website for FAQ’s on these coverage forms.

Umbrella and Excess Insurance* – In conjunction with McGowen Excess and Casualty, these policies provide you with additional limits (usually $1mm to $5mm) of liability above your General Liability policy. Since a General Liability policy protects your business from bodily injury and property damage claims that you become legally obligated to pay, it is essential that you have proper limits in place to protect your business. In today’s litigious society, a $1,000,000 of General Liability insurance may not be enough. Check out FAQ’s on our website. Look under products.

Builders Risk Insurance – We are an authorized agent for one of the worlds largest insurers…Zurich. Builders Risk insurance protects your financial interest in the materials, fixtures and/or equipment being used in the construction, or renovation of a building, or structure in the event they are damaged or destroyed by a covered cause of loss like fire, windstorm, vandalism or theft.

Contractors Equipment Insurance – With Zurich, Contractors Equipment coverage is property insurance that covers the loss of, or damage to covered equipment owned by you, or in your possession resulting from such hazards as fire, theft or vandalism.

As a leader in the residential home building industry we are committed to providing general liability insurance and select other coverages to members of Residential Warranty Company, LLC, throughout the United States*.

Before you renew coverage elsewhere, consider getting a quote with RIA. Just visit our website and click on the Get A Quote button and answer a few easy questions. We will reply via e-mail with a price indication.

*Insurance products may not be available in all states & are subject to underwriting requirements.

A home is one of the biggest investments a person will ever make and in order to keep that home glowing and increasing in value, a well-maintained property should be the goal for years to come. Of course, a warranty will provide protection, but seasonal maintenance by the homeowner is also key to long-lasting digs. As a professional in the industry, you’ve seen first-hand what irresponsibility will do to a residence. It’s imperative to remind your buyers that even though a home may be brand spanking new, regular maintenance is absolutely necessary to ensure safety, comfort, and retain resale value.

It’s easy to preach to a homebuyer about keeping up with seasonal tasks and send them on their merry way, but why not arm them with a comprehensive list of things they should be aware of? Steer them toward RWC's "season maintenance checklist" under the Homeowner's tab. This is a great tool for homeowners to stay on top of things. Furthermore, you as the builder must have gathered hundreds of maintenance tips during your career. Offer up those tips and hints as you meet with your clients throughout the home building journey.

Just for fun, here is a home maintenance quiz that will test your know-how. While this quiz does not address every conventional home maintenance project, it does provide helpful tips that may have been overlooked.

1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.
2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.
3. Should you run hot or cold water through your garbage disposal?
Cold water.
4. How often should the moving parts of garage doors be oiled?
Every three months.
5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.
6. What tool can be used to unclog a toilet?
Coil spring-steel auger.
7. What faucet part needs to be cleaned every three to four months?
Aerator — the screen inside the end of the faucet.
8. What can you use for traction on icy sidewalks, steps, and driveways?
Cat litter or sand — never use salt because it damages the pavement.
9. Where should the fire in your fireplace be built?
On the irons or grate, never on the fireplace floor.
10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.
11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.
12. What helps keep unpainted concrete floors easy to keep clean?
Concrete Sealer.
13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.
14. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could cause the pipe to burst.
15. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.
16. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.
17. At what temperature should your water heater be set?
120 degrees Fahrenheit
18. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.
19. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.
20. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.

(Quiz provided by NAHB.org)