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Home Builder’s Limited Warranty Program (HBLW)

HomeGraph_illustrationUnbeatable Large Builder Solution

PWSC was the first to introduce the “warranty driven” general liability product for volume production home builders. The term “warranty driven” meant that for the first time, homebuilders are able to purchase general liability insurance that includes defense and indemnity for construction defect claims arising out of a builder’s express warranty. This builder’s warranty is PWSC’s Home Builder’s Limited Warranty (the “HBLW”).

Unlike PWSC’s Signature insured warranty, which is independent of the homebuilder s’ general liability (“GL”) policy, the HBLW may be integrated into the GL policy, if the builder chooses an insurer that offers that option.

The HBLW allows for a greater level of flexibility for the builder to assume risk and handle claims more efficiently. Additional benefits:

  • Only the builder (or arbitrator working a disputed warranty claim) can determine a condition to be a construction defect under the warranty
  • Liability issues are eliminated because if a builder or arbitrator determines an issue to be a construction defect under the warranty, it will be covered per the terms of the GL policy
  • The builder and its subcontractors may be covered in a “wrap” policy, eliminating the “blame game” when a construction defect arises, and promoting speedier claims resolution
  • Claims are covered for the statute of repose in a specific state (or per agreement with the GL carrier)
  • Construction defects are resolved quickly, as the insurer does not require a lawsuit or actual physical damage to the home to trigger coverage
  • Constituents’ interests are aligned to handle their claims relative to construction defects promptly and without attorney intervention
  • The arbitration provision is broadly written and is expressly subject to interpretation pursuant to the Federal Arbitration Act (“FAA”)

If a builder chooses an insurer that does not integrate the warranty into their GL policy, PWSC can still provide the HBLW on an administrative-only basis where we act as a value-added third party administrator; providing the same high quality level of services.

Benefits To Homeowners

Easy to understand. Written in plain language, with specific details so homeowners know exactly what’s covered and for how long.

No deductible.There is no deductible for the homeowner to fulfill before a homeowner receives payment.

Transferable. If the home sells during the terms of the warranty, transferring the remaining portion of the warranty to the new owner is easy.

Trained customer service and claims agents.Our helpful service representatives mediate disputes, resolving over 90% of homeowner complaints without arbitration.

 

Top Builders partner with Professional Warranty Service Corporation. 

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