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Arbitration? It Works!

As hopefully you are aware, all of RWC’s home warranty programs include our effective home warranty resolution process which includes mediation and, if needed, formal arbitration. We are asked from time to time if the system works...or in other words, if the warranty is “worth it.” So from time to time, we like to highlight a specific case study which shows exactly how this process benefits you, our member.

In this case study, the home was in Year 1 of home warranty coverage and was financed through VA/HUD. The homeowner’s request for warranty performance stated: “The duct work is making continuous knocking/ticking noises during every heating and air conditioning cycle.”

During RWC’s mediation, the builder informed RWC that they spent more than 40 hours “without exaggerating” trying to find the ticking while opening up the ceiling, and there definitely was not oil canning. The builder concluded that he had exhausted all efforts. RWC declared the issue unresolved and referred the homeowner to the warranty’s arbitration provisions.

The homeowner completed and returned the arbitration forms and paid the arbitration fee of $950.00. The parties to the arbitration were the builder and the homeowner.

The arbitrator determined: “Residential Warranty Company standards provide that with regard to ‘excessively loud notices’ in ductwork, such ductwork will be adjusted if necessary to eliminate noises caused by oil canning. Therefore, parties during the arbitration agreed in that the reported noise problem is currently not audible. The homeowners stated that they have, in fact, not heard it for some time, and not at all during this air conditioning season. The request of the homeowner is ‘Not Covered’ according to the warranty book. No repairs or other further remedies are necessary for a problem which both parties agree does not currently exist, and one party claims to have never existed. Based upon the above findings of fact, and the award in favor of builder, all costs are to be paid by the homeowners.”

Not only did the builder have a successful award, but he did so in a very timely, economical manner. Additionally, it was not necessary for either party to be represented by counsel.

This is a real case and a perfect example of how the builder’s warranty standards prevent unmerited complaints and support the value of RWC’s resolution process.

Learn more about RWC’s home warranty plans and builder benefits!



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