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

Why is it important to worry about safety when it comes to wet concrete? Because concrete is one of the most widely used construction materials there is, which means there are an untold number of workers who are exposed to these hazards on a daily basis. The biggest hazards include skin irritation, severe chemical burns, and serious eye irritation. Concrete can be safe when used appropriately and with the safety precautions below.

• Wet cement (an ingredient in concrete) is caustic, abrasive and drying, so protect your skin. Wear appropriate PPE such as tall rubber boots, pants, waterproof gloves and long-sleeved shirts.
• If concrete comes into contact with your skin, it’s important to immediately wash off with clean water and replace any wet clothing or PPE. Don’t wait!
• Be sure to wear eye protection when working with wet concrete. Your eyes can be seriously injured due to splashing concrete. Wear safety glasses with side shields or safety goggles.
• Wet concrete can conduct electricity. All electric tools should be grounded and used with care.
• When raising or lowering concrete chutes, be aware of pinch points. These can take off a finger or hand if you’re not paying attention.
• Protect your back. Place wet concrete via chute, wheelbarrow or pump, as close to the work area as possible. Concrete should be pushed, not lifted, into place.
• Use waterproof kneepads or a dry board when kneeling to place or finish concrete.

It’s important to understand that you may not experience any acute symptoms right away if wet concrete touches your skin. But if you don’t wash the area as soon as possible with cold, clean water, you could end up with a serious burn. If a burning sensation continues or worsens even after you’ve flushed the area with water, seek medical attention. If wet concrete splashes into your eyes, flush them continuously with clean water for at least 15 minutes and then go to the hospital.

Source: www.ccicomply.net

Occasionally we will highlight a section of the warranty book just as a reminder of how things work or to demonstrate protections built into the warranties. This time, we thought a reminder of all the various warranty options available to you by virtue of your RWC membership might be helpful.

Let’s start off here: http://www.rwcwarranty.com/builders/whats-covered/. As an RWC Member, you have choices galore!

You can have a warranty with Major Structural Defect coverage or a warranty with coverage on Designated Structural Elements. You can have coverage that includes workmanship, materials, mechanical systems and structural components or you can pare it down to one that just covers structural components. You can stick to the traditional FHA/VA approved 10-year variety or customize it with a warranty that mirrors your state’s statutes.

That covers the “new home” variety of warranties. But we know that many builders out there do much more that build new homes. They remodel, they convert commercial structures into condos, they may build a detached garage and on and on.

That being said, check out the RWC Menu of Choices at rwclive.wpengine.com/builders/warranty-options/ 

- RemodelerWarranties with options to fit the job (and in states like Indiana & Minnesota, to meet state statutes as well)Commercial Warranties
- Conversion Warranties
- Building Systems Warranties
- HUD-Code Manufactured Home Warranties
- Appliance & Systems Extended Warranties*
- 1 Year Renewable Warranties
- Commercial Insurance Products (GL, Builder’s Risk, and Contractor’s Equipment)

*Available in select states only at this time.

We’re working hard to meet the needs of our Membership. If you have a need for a warranty and we don’t have a product to meet that need, let us know and we’ll look into it. We’re always on the lookout for ways to better serve our Members!

Building homes is a very complex thing. The National Association of Home Builders estimates that over 3,000 components are used in constructing a house. The single most problematic component for Residential Warranty Company, LLC (RWC) is the foundation, a wall of concrete block resting on a footing, supporting the full weight of the house, its contents, and inhabitants. This component is arguably the most important component. Why then is it the most problematic?

When designing and constructing a concrete block (CMU) foundation there are many very important elements that need to be considered. The single biggest dynamic that we are faced with is resistance to lateral movement. The forces that laterally impact CMU foundations should be considered when using this method of foundation construction. Steel reinforcement, introduction of pilasters, solid grout along with rebar in hollow cores and attention to backfill and soil types go a long way in constructing an adequate foundation wall that can resist lateral forces.

There are external factors that can affect CMU foundation performance. The height of the backfill along with the type of soil (clay, shale, sandy, expansive, etc.) may have required special attention when it was placed. The installation of perimeter drain systems whether internal or external will be evaluated. Is a sump pump installed and has the homeowner been proactive in using and maintaining the system? If the system is day lighted, is the line clear and does it function properly? Hydrostatic pressure created from over saturated soil has tremendous weight that can test the limits of the foundation wall if a potential water condition is not mitigated.

When a claim is made to RWC, a fact-finding inspection is ordered. A licensed professional engineer is scheduled to visit the home and assess all aspects of the condition reported. RWC will contact you and ask for any documentation you have regarding the construction of this home. If upon review of the fact-finding inspection report in relation to the Limited Warranty applicable to the home, the condition of the defect meets the specified criteria for coverage, RWC is obligated to take action. In most instances the mode of foundation movement is lateral and our responsibility is to restore the load-bearing function of the foundation wall. The engineer will evaluate the unbalanced fill condition as he evaluates the foundation wall. Any actions that the homeowner may have taken regarding landscaping, patio installation, modifications to the downspout locations or re-routing of the downspouts along with overall grading and drainage that may have been modified after the home was delivered by the Builder, are noted and taken into consideration.

During this phase of the claim, RWC will again reach out to your company. As the Builder, you have the most knowledge about this home. You have been intimate with this structure from the first idea that a home should be constructed until settlement changes title to your buyer. We understand and respect that you are most knowledgeable. We rely on your expert knowledge and ask that you provide us with the details regarding how this foundation was designed and built. This will include requests for drawings and details regarding any service orders or warranty claims that you have dealt in the first two years of the homes life. Anything that you can provide to us so we can carefully evaluate every aspect of this covered condition.

RWC will be required to provide a settlement offer, or in some cases, make repairs that will restore the load-bearing function to the CMU foundation. We are not obligated to rebuild the foundation wall however this may be necessary dependent on the severity of the lateral displacement. Our efforts commonly involve reinforcement utilizing solid core grouting and rebar installation and more recently the use of carbon fiber reinforcement. This work is most often performed from the interior of the home negating the extensive cost of exterior excavation. It is important to recognize that this work will be accomplished in accordance with a sealed structural repair plan provided by a licensed engineer and the work will be certified at completion by the same professional. Remember, the Limited Warranty requires that the load-bearing function be restored, that does not necessarily mean that a wall that shows signs of lateral movement needs to be plumb when the repairs are complete.

RWC understands that you are truly professional Builders. When we have to deal with this significant structural problem we know you have done your due diligence throughout the construction process and you will be able to provide us with the important data we need to ensure a fair evaluation of the claim and an adequate repair when required.

Written by Don Sechler, RWC Warranty Resolution

The new home building industry saw positive improvements over the past few years and continues to be on the upswing. The nation’s vacant home inventory is becoming depleted and new homes are being built to meet the demand. Buyers have more confidence so not only are homes being built, but they’re being bought.

What are you doing to entice buyers and set yourself apart from your competitors? What kind of bells and whistles are you including in your homes that other builders are not? How are you promoting your quality and strength? What’s your response to a potential buyer when they ask, “What if I have a problem in my home?”

That’s a real concern for buyers. None of us can forget how difficult the economy has been in the past. Home buyers, especially want to be assured they’re getting the most for their money and that they’re purchasing a home from a reputable, quality builder.

By providing RWC’s warranty, you’re proving to your customers that if there’s a problem in their home, it will be corrected. We investigate all of our members. We want to be sure RWC members have a solid reputation, build a quality home, have financial strength, and provide excellent customer service. You don’t just subscribe to RWC. You earn your membership, so be sure to proudly include and display the fact that you’re an RWC member. Add our logo to your printed materials and media advertising and add a link on your website to our Homeowners page.

This will also help you compete against resale homes on the market. Most resale homes include a third party warranty. Quality, reputation, reliability, warranties and assurance are all very important factors in a home buying decision.

Have you ever had a difficult homeowner after the sale? RWC can help you there, too. Our dispute resolution process is extremely effective. We have trained individuals that assist you and your homeowner through a free mediation process. Mediation is efficient and effective. From time to time, a homeowner isn’t satisfied with the outcome. For those occasions, binding arbitration is available. Again, RWC’s staff assists the parties through this process. It’s not necessary for you to hire an attorney.

Now that homebuilding is gearing up again, be sure to emphasize your advantages. Don’t miss out on sales because you didn’t promote yourself adequately. In addition to your company’s profile information, be sure to advertise that you provide an insured, third party warranty from the nation’s largest warranty company. The benefits are numerous for your homebuyers and for you.

Alfred “Freddy” Pesqueira has just completed his training at RWC’s corporate office in Harrisburg, PA. Freddy is now representing our home warranty company as an Account Executive for Alabama, Florida and Georgia. We want to welcome Freddy on board our team of new home warranty experts!

A Little About Freddy...

Freddy is a graduate of Georgia Southern and was both a 4-time All-American and All-Conference football selection. He signed with the Canadian Football League in 2003 before returning to Georgia. Freddy is married with two children, a son and a daughter, and coaches wrestling, baseball and softball in his free time.

He comes to RWC from State Farm Insurance where he was a top producer, selling insurance and financial products for the last 5 years. His experience in insurance, building client relationships and business development combined with RWC’s 30+ years in the home warranty business and over 3 million homes warranted, makes for a successful team.

Freddy will be reaching out to prospects and members in the near future to introduce himself and to learn more about your company. Please take the opportunity to meet and talk with him. At any time, please feel free to contact Freddy at 678-276-6013 or freddy.pesqueira@rwcwarranty.com.

Thank you for your continued patronage and loyalty to RWC, as we continue to lead the way in new home warranties. Your alliance is very important to us.