Thread: HWA Launches First National, Licensed Home Inspection Warranty Program - RisMedia.com

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HWA Launches First National, Licensed Home Inspection Warranty Program
RisMedia.com (press release), CT - 39 minutes ago
Home Warranty of America, Inc. (HWATM) announced the release of two fully licensed home inspection warranty products that are comprehensive in coverage and ...


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Hi,

Our company signed up for the HWA limited home warranties a few months ago - the customer service has been great so far, and it seems to be a good marketing tool. We were just paying for each warranty separately, but quickly found out that we were sometimes paying for a home warranty on a house that the buyer did not decide to buy. Of course, HWA will credit your account in this case, but that left me with something else to do - follow up (again) with the buyer to see if they actually bought it, or transfer the warranty over to the second house they had us inspect for them.

What I am doing right now is placing the burden of notification on the homebuyer by including the home warranty in the report package with "Time Sensitive Document - Please Read Reverse" on the front of the warranty, and a notice (very visible) that they must contact us within 10 days of the inspection that they intend to purchase the inspected property or the free limited warranty will not be issued. I also include this stipulation in other areas (website and other places). Does someone have a better way, or think there may be a legal problem (gasp) doing it this way? Is 10 days too long? I don't like to waste money. Any suggestions would be helpful.
Thanks!

In some places, such as in Florida, selling a warranty is, well ... selling a warranty, which is Innsurance, which requires one to be a licensed innsurance agent before being able to legally sell them. Including them in your home inspection as 'free' does have a cost, because, if it is truly 'free', meaning no strings attached, you WILL issue a home warranty to anyone who asks for one, whether or not they have you do an inspection.

That last part will get you in trouble in most states, even if the innsurance aspect does not. If you advertise it as 'free', it needs to be 'free'. An exception to that is 'buy one, get one free' at which case most states treat that as 'each one is half price'

I have been using American Home Warranty American Home Warranty for the past 4 years and found them to be great to do business with. The cost of the policies are less than HWA. Offering a warranty is a great differentiator and has saved me from unpleasant situations on several occasions.

//Rick