Home Buyers Warranty (HBW)
Thursday, 07 October 2004
Beware! Home Buyers Warranty (HBW)
Admits to Refusing 86% of All Claims
A Review of the
Home Buyers Warranty
2-10 Year Written Warranty for New Homes
HomeOwners for Better Building
Warranty's pay only about 1% of claims
"I don't believe in them," says Ron Barney, vice president of Trend Homes, a 900-unit builder in Chandler, Ariz. "It's an appeasement to homeowners that really doesn't do anything for them. I have a problem wasting money like that." ... 10-year structural warranties is that their narrow and vague policy language excludes most homeowner claims or common residential construction problems, from drywall cracks and nail pops to more severe issues of foundation fissures and beetle-infested framing.
In fact, the warranty industry pays claims on only about 1 percent of the homes covered by such policies. "They're in the business of collecting fees and not paying claims," says Jack Dorwart, manager of Holladay Group in Lakewood, Colo., which will close about 40 homes this year--all with insurance-backed, 10-year warranties to pacify buyers. "For the types of things a homeowner wants [covered], there's always an excuse [to deny the claim]." Even those in the industry admit their policies are limited. "Most construction defect lawsuits don't fall under warranty protection," says Wallace "Em" Fluhr, CEO of 2-10 Home Buyers Warranty (HBW) in Atlanta, Read more...
Home Buyers Warranty Corporation (HBW) Scam & Binding Arbitration
After HBW accepted homes for enrollment in the warranty program, HBW issued warranty booklets to the homeowners. The HBW warranty booklet provided, "Any and all claims, disputes and controversies by or between the Homeowner, the Builder, the Warranty Insurer and/or HBW, or any combination of the foregoing, arising from or related to this Warranty, to the subject Home, to any defect in or to the subject Home or the real property on which the subject Home is situated, or the sale of the subject Home by the Builder, including without limitation, any claim of breach of contract, negligent or intentional misrepresentation or nondisclosure in the inducement, execution or performance of any contract, including this arbitration agreement, and breach of any alleged duty of good faith and fair dealing, shall be submitted to arbitration. Read more...