Why a Structural Home Warranty - 2-10 Home Buyers Warranty
Educate home buyers on the importance of a structural home warranty and why they should choose a builder that uses them.
By: 210HBW
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Why a Structural Home Warranty - 2-10 Home Buyers Warranty - Video
A growing number of home builders going insolvent in Victoria and NSW has required insurers to pay out more than $300 million over the past decade for unfinished or substandard work. There is the same amount in outstanding claims yet to be settled.
The scary part is that, as of January 1, taxpayers in Victoria and NSW bear all new risks from this growing trend. Insurance minnow Calliden was the last private sector player to underwrite so-called builders warranty insurance, but after mounting losses it stopped doing so at the end of last year.
In NSW, the last of the big underwriters departed the market in 2010, leaving the taxpayer-sponsored NSW Home Warranty Insurance Fund to take on all new risks. It hasn't started well. In the past two years the fund has racked up more than $165 million in losses.
''The future building cycle is uncertain, especially the length and the severity of future economic downturns, and this will impact the emergence of future builder insolvencies and hence future claims costs,'' the fund said.
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Administrators of failed builders typically attribute the collapses to poor management, inadequate cash flow and trading losses, but insurers also blame so-called phoenix companies, where a builder will prefer a trading entity to become insolvent rather than meet the cost of rectification work only to re-emerge to start new projects under a new trading entity.
''The building industry is a particular hot spot for phoenixing as reported in last year's Collins Inquiry into Insolvency in the NSW construction industry,'' says Shaun Bailey, a partner at law firm Corrs Chambers Westgarth.
Mandatory home warranty insurance schemes are supposed to provide a safety net to home owners where a builder is unable to complete the contracted work or rectify defective work because of their death, disappearance or insolvency. In reality, builder insolvencies caused by whatever reason are the source of the vast majority of claims.
In announcing proposed reforms late last year, NSW Minister for Fair Trading Anthony Roberts emphasised that prospective home owners deserved protection when embarking on the biggest investment of their lives, but he didn't spend much time on the exorbitant cost to taxpayers of providing that protection.
There are good reasons why the likes of Vero, CGU and Lumley no longer assume such risks.
Read more from the original source:
Taxpayers bear brunt of insolvency costs
A growing number of home builders going insolvent in Victoria and NSW has required insurers to pay out more than $300 million over the past decade for unfinished or substandard work. There is the same amount in outstanding claims yet to be settled.
The scary part is that, as of January 1, taxpayers in Victoria and NSW bear all new risks from this growing trend. Insurance minnow Calliden was the last private sector player to underwrite so-called builders warranty insurance, but after mounting losses it stopped doing so at the end of last year.
In NSW, the last of the big underwriters departed the market in 2010, leaving the taxpayer-sponsored NSW Home Warranty Insurance Fund to take on all new risks. It hasn't started well. In the past two years the fund has racked up more than $165 million in losses.
''The future building cycle is uncertain, especially the length and the severity of future economic downturns, and this will impact the emergence of future builder insolvencies and hence future claims costs,'' the fund said.
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Administrators of failed builders typically attribute the collapses to poor management, inadequate cash flow and trading losses, but insurers also blame so-called phoenix companies, where a builder will prefer a trading entity to become insolvent rather than meet the cost of rectification work only to re-emerge to start new projects under a new trading entity.
''The building industry is a particular hot spot for phoenixing as reported in last year's Collins Inquiry into Insolvency in the NSW construction industry,'' says Shaun Bailey, a partner at law firm Corrs Chambers Westgarth.
Mandatory home warranty insurance schemes are supposed to provide a safety net to home owners where a builder is unable to complete the contracted work or rectify defective work because of their death, disappearance or insolvency. In reality, builder insolvencies caused by whatever reason are the source of the vast majority of claims.
In announcing proposed reforms late last year, NSW Minister for Fair Trading Anthony Roberts emphasised that prospective home owners deserved protection when embarking on the biggest investment of their lives, but he didn't spend much time on the exorbitant cost to taxpayers of providing that protection.
There are good reasons why the likes of Vero, CGU and Lumley no longer assume such risks.
Read the rest here:
Taxpayers bear brunt of costs as building underwriters withdraw
Joseph Cordova # 1 Realtor - Home Warranty
By: Joseph Cordova
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Joseph Cordova # 1 Realtor - Home Warranty - Video
81 VICTOR AVE., TORONTO
ASKING PRICE: Originally $899,000, now $949,000
TAXES: $4,791.54 (2013)
LOT SIZE: 18.75 by 111 feet
AGENT: Jen Tripp, Homelife/Realty One. Ltd. Brokerage
When Martin Griffey moved to Canada eight years ago, he wasnt exactly sure where he wanted to live. So, he took a drive with his real estate agent, Jen Tripp.
As they drove through the gently shaded streets of Riverdale, he quickly fell for the neighbourhood. It wasnt just the convenience of being close to the amenities of the Danforth, he says. It was also because he was a short jaunt to the 505 streetcar that takes him straight into the core. And, yet, even so close to the citys hustle and bustle, Victor Avenue is sandwiched between two parks.
Riverdale Park is just a walk away and Withrow Park is just on the other side, Mr. Griffey says.
Plus, as he points out, you get more space for your money in Riverdale compared with Cabbagetown, which is across the Don River. In 2006, Mr. Griffey paid $585,000 for 81 Victor Ave.
The back story
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Home of the Week: Riverdale Victorian has heritage cachet
Harrisburg, PA (PRWEB) March 05, 2014
In response to favorable feedback regarding its recently launched membership drive, Residential Warranty Company, LLC (RWC) - an innovator in the warranty industry and the nations leading new home warranty provider - is happy to announce that its extending the length of this limited-time offer.
Now through May 31st, 2014, RWC and affiliates (HOME of Texas and MHWC) are waiving the $295 registration fee for all New Membership Applicants.
To receive this offer, simply visit RWCs new online membership application and register. Homeowner references, supplier references, and inspector references are not required, making it easier than ever to become a member and access RWCs unparalleled home warranty programs.
Membership in RWC or one of its affiliates comes chock-full of exclusive benefits and sensible home warranty options.
RWC Membership Advantages:
To receive the advantages of RWC membership, register today through May 31st, 2014 for free.
ABOUT RWC
Residential Warranty Company, LLC is a leading provider of insured home warranties to the building industry. Builders seeking options in coverage, sensible home warranty protection, and assistance in dealing with customer service, choose RWC. In business for over 30 years, RWC has warranted over 3 million homes and its Insurer is rated A- (Excellent) by A.M. Best. An extensive menu of choices in both home warranties and general liability insurance is available, enabling builders to reduce their liability and increase the marketability of their homes. Become a member today: http://www.rwcwarranty.com.
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Residential Warranty Company, LLC Extends Limited-Time Membership Drive
14 Grand Jt
Enjoy the benefits: hard-surfaced, low maintenance tile flooring throughout the living areas and master; high-quality stained wood cabinetry plus stainless k...
By: The Delois Smith All Star Team, Realtors
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14 Grand Jt - Video
Why a Home Warranty?
We always recommend to our clients that they should consider purchasing a home service warranty when buying or selling an existing home. Home warranties, act...
By: Ed Schaefer
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Why a Home Warranty? - Video
Editors Note: This is the fourth installment of the "What to Expect When" series with Realtor Warren Frerichs of Realty Executives.
PHOTO COURTESY OF REALTY EXECUTIVES
Buyers who want a more worry-free home inspection might want to consider a condo or townhome. The unit owner is only responsible for their interior while the association handles the big things, like foundations, roofing, siding, and landscaping. This two-bedroom, two-bath condo is located in The Grande in Riverdale. The third-floor unit features low taxes, an open floor plan, center island kitchen, and spectacular views. It is listed for $295,000.
NORTH JERSEY You are almost ready to call your newfound love "home," but you have a few more monumental steps to go before you can carry yourself over the threshold. You must get through the dreaded, home inspection. Warren Frerichs of Realty Executives talks with Suburban Trends to discuss this next step in the buying process and how buyers can avoid snags along the way.
"OK, so you have a contract on your dream home, and you have cleared attorney review. Youre in the home stretch, right? Not so fast. You still have to get through the home inspection, arguably the most frightening part of the transaction for most people," explained Frerichs.
"Buyers, especially first-time buyers, have it particularly tough here. Remember that most of todays buyers did not grow up fixing houses, cars, or mini bikes. They grew up playing video games and soccer, neither of which require tools. So they will listen to their home inspector, literally hanging on every word, and looking for a clean bill of health. So who do they trust?" Frerichs said.
According to Frerichs, the real-estate industry "does not require Realtors to understand structural issues, plumbing, electrical, roofing, or any other aspect of the homes construction. Nor do they want us to because of potential liability that might shift to the Realtor, and their company, should a post-sale issue occur."
With that being said, most Realtors will "transfer that liability to the home inspector. The home inspector, in turn, has the buyer sign a pre-inspection agreement that they are not responsible for defects beyond the scope of their inspection."
So how do you know which home inspector to choose when you finally reach this step in the process?
Start by asking your attorney or Realtor who they recommend.
More here:
What to expect when buying a home: the dreaded home inspection