| The PWC / Zurich 10-year Insured Builder’s Warranty Program |
| What is different about the PWC Warranty? |
| The PWC builder’s limited warranty is clearly written to be easily understood by homebuyers and the builder’s staff. Specific measurements are used to identify structural element failure rather than confusing definitions susceptible to varied interpretation. The 10-year insured limited warranty is backed by Zurich, a Best’s “A” Rated insurance company. |
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| How does the PWC warranty assist the builder in marketing homes? |
| The PWC-administered builder’s warranty provides the prospective homebuyer clear expectations of their new home and a simple, fair, timely process to resolve any issues. PWC’s staff will train the builder’s staff to develop a clear understanding of the warranty and process. |
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| While most warranty companies charge a deductible, PWC does not. Why? |
| Buying a home is the most significant purchase an individual will make. Charging a deductible to repair a defect does not foster a positive relationship between buyer and builder. It only adds stress and tension to resolving the issue. |
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| PWC does not charge a fee to file a claim. Why? |
| Some warranty companies charge a $250 or $500 claims submission fee. PWC does not for the reason identified in #3 above. |
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| Binding arbitration helps both homebuyers and homebuilders to resolve issues. How is this an advantage to both? |
| Binding arbitration offers a faster, less expensive and less complicated alternative to litigation and it produces a decision that is final and binding on both parties. |
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| PWC has an arbitration filing fee of only $80, which is much lower than the competition. Why? |
| PWC believes in facilitating the resolution of disputes; not creating barriers to the dispute resolution process. Some warranty companies charge arbitration fees of $200 to $600 per claim. PWC works to build a bridge between buyers and builders to resolve issues. |
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| How does the PWC warranty assist the builder in marketing homes? |
| Several large general liability insurance companies discount their GL rate if you have a PWC/Zurich-insured 10-year limited warranty. Others may require the warranty before they will provide GL. |
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| How does the PWC-administered builder’s warranty help me maintain good relations with my customers? |
| Builders’ customer base is their most valuable asset. A satisfied customer base can be a source of 40% or more of their sales. PWC’s staff focuses on fostering a good relationship between the builder and the homebuyer. |
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| How does the builder enroll a home in the program? Are there start up fees? |
| Just a phone call to PWC — 1-800-850-2799 — prior to closing is all that’s needed. No start up notification or start up fees required. |
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| What is the cost of the 10-year insured warranty? |
| The PWC builder’s limited warranty is clearly written to be easily understood by homebuyers and the builder’s staff. Specific measurements are used to identify structural element failure rather than confusing definitions susceptible to varied interpretation. The 10-year insured limited warranty is backed by Zurich, a Best’s “A” Rated insurance company. |
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| What is different about PWC service? |
| PWC’s standard is “Nothing less than excellence”. Our 800 phone number is answered by a “real” person. No digital recording. Our standard is to answer your call 3 rings. You will immediately be transferred to someone who can assist you with your specific need. If you order supplies, our standard is to have them on the way to you before the end of that business day. |
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| The PWC / Zurich General Liability / Warranty Wrap Up |
| What is a GL wrap up? |
| It is a Zurich insured General Liability policy that may include the builder and subcontractors in one policy, as well as a Home Builder’s Limited Warranty administered by PWC. One program — HBPP for homebuilders with an annual sales volume of $100 million or more. A volume builder program is available for homebuilders with annual sales in the $20 to $100 million range. |
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| What is the difference between the two GL programs? |
| HBPP has a minimum SIR of $250,000 and the volume builder program has a $25,000 to $100,000 deductible which varies by state. Volume builder liability limits range from $2 to $6 million. HBPP limits range from $10 to $60 million. Coverage language is similar. |
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| Why are they so popular with homebuilders? |
Builders are faced with these challenges:
- Lack of availability
- Low liability limits
- Inadequate subcontractor insurance
- Cumbersome system for tracking subs’ certs and of limited value
- Exclusions for completed operations, work of subs, EFIS, soil subsidence
- Constant changing of insurance companies at renewal
The Zurich/PWC wrap up program offers:
- Available higher limits with excess coverage
- Opportunity to share risk with SIR and deductible
- Coverage to high quality builders
- Subs can be wrapped up in builder’s coverage
- Eliminate cumbersome certificate tracking systems
- Completed operations, work of sub, EFIS, Soil subsidence covered
- Two year policy
- Best’s “A” Rated
- A program that builds a bridge to resolve disputes with your customer
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| What are key points to consider in contemplating a wrap up? |
- Financial strength of insurance company. These are long term obligations of significant size.
- Coverage language. Beware of exclusions that transfer many risks back to the builder.
- Successful experience in providing wrap GL coverage.
- Warranty administrator’s reputation for delivering excellent service.
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| What can the builder do to offset the costs? |
| Providing coverage to the subcontractor allows the sub to reduce their payroll base on which their GL premium is calculated. These savings can be passed back to the builder to reduce builder’s costs. |
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| What is PWC’s role in the process? |
| PWC’s sales team works with brokers to develop builder interest in the program. Following binding of coverage they train the builder’s staff including customer service, marketing, administrative, accounting, and operations on the new program. Builder’s legal counsel will need to review sales contracts and home owner manuals to be sure they reflect the wrap up program. PWC will work with the appropriate people on updating these documents. |
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| Can the builder use their current broker? |
| Brokers are the choice of the home builder. It is important for the builder’s broker to have the knowledge, experience and staff to service the program. |
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