The Evolution of Home Warranty Companies – Decades in the Making

June 30, 2015

house on plans I started my career in the building industry in 1972. In May, 1975, I was introduced to the warranty industry when NAHB started the Home Owners Warranty program (HOW) and I became the administrator of the HOW Council of Metro Atlanta.

Many people today may not remember why HOW was created. Legislation was going to be introduced to require 10% of the sales price of a home to be put aside to cover construction defects for a period of 10 years if the housing industry did not take action to address this issue (Senator Percy, Illinois). I had the privilege and honor of getting to know and working with many of the housing industry’s leadership – Dave Fox, Joe Chudnow, George Martin, Ted Pratt, Dick Canavan – to name a few. After HOW, several other warranty companies were created.

What has changed since then? Many rules, regulations, and requirements have been put into place to build homes, but one thing is constant – major construction defects still exist and are REAL! It does not mean builders are building bad products. We build on an “unpredictable surface” called Mother Earth. Millions of dollars have been paid by home warranty companies to resolve structural issues for many good builders.


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You, today’s builders, need to protect yourself, your business and your customers not only by providing a warranty, but using it as a methodology to grow, protect and inspire happy homeowners today and in the future. To put the warranty concept into perspective, you cannot close a loan without homeowners insurance which, over a 10 year period, costs 5 to 6 times more than an insured backed warranty for major construction defects on the average. An insured warranty, like the PWSC Signature 10-year warranty begs serious consideration because it provides serious protection. By you providing this to your homeowners, you protect yourself and your homeowners from the repercussions of a structural defect that homeowner’ insurance does not cover.

Take the time to understand and utilize a PWSC warranty to not only enhance sales, but to provide for and protect your future!

By Ben Harwell, Senior Vice President & Sales Advisor