Joined: 06/17/2014 09:32 PM EDT
Location: Carmel, IN
Those that follow my posts and videos know about our 24/7 service, our coverage for underground Sewer and Water Lines with SewerGard, our Use Your Own Contractor Option, and our free extension up to 18 months when you utilize a qualified inspection company...but did you know that we have the best coverage in the marketplace for Pre-Existing Conditions? We do and I want to tell you in detail what that means.
WARNING: EVERYTHING YOU READ HERE IS IN REAL ESTATE LANGUAGE. It's not that I'm hiding any of it, this is a public post, but it's aimed at the real estate community and may not be easily understood by consumers cruising the internet. My apologies in advance! If you're buying or selling a home...talk to an agent! It's a complex world!
Now back to business...
What's the difference between the Residential Warranty Services "No Pre Existing Coverage" and the others in the market? They tout their coverage as similar...
While the wording in the marketing might be similar, the reality is this:
1. Other policies have a number of exceptions and exclusions regularly utilized to effectively deny pre-existing conditions. One example would be the "30 day waiting period".
2. Other policies simply don't cover the components that we do anyhow, so "No Pre-Existing" becomes sort of irrelevant.
3. The way we handle it makes sense to the transaction and eliminates the "Home Inspection to Home Warranty Gap".
So another home warranty company has a "no pre-existing conditions" message? Great. Except they still don't cover the major stuff for 30 days in most cases so they just exclude it for a different reason. What's the difference to the client? Maybe a simpler understanding of why their claim is denied, but that's about it. It's still the same horrible situation but with a different name, and just a matter of time before a client finds themselves in this situation.
But then we get to the number of components that are covered. Does it matter whether an issue is a pre-existing condition if it is one of the items in the unbelievably long list of specifically excluded items in our competitors' policies? No, because it's not covered anyhow. So again, perhaps a simpler understanding but the same negative end result for the client.
Now let's get to #3 in the list above and let's make sure we are clear about how the real estate transaction should go and how we are passionate about eliminating the "Gaps" at Residential Warranty Services. Our coverage statement is very simple on this matter: If it wasn't defective at time of inspection or it was fixed, it doesn't have a "Pre-Existing Condition". This makes sense to every qualified real estate agent in the world and should to everyone in the real estate transaction - you make an offer, you review the disclosure, you get an inspection, you negotiate repairs, you close with a warranty to protect you thereafter. By connecting our policy to the findings of the inspection (and the repairs done thereafter), we've created a scenario where there is accountability and eliminated a gap. All too often, and there is no shortage of agents who have experienced this that are now loyal clients of ours (in the hundreds definitely but likely in the thousands), the Warranty company has a reason to deny (pre-existing or 30 day or whatever their excuse is that day) and the communication of such eventually comes across as a contractor saying "your inspector should have told you about this". Then it becomes a game of hot potato that makes everyone look bad and costs agents referrals and most importantly...doesn't serve the client well.
Did the inspector say it was fine? Yes. Then it's covered. Did the inspector find an issue that was then resolved? Yes. Then it's covered. It is a thought process like this and our connection as a company to the home inspection industry that helps us to deliver the best experiences in the industry.
Now we get to the last scenario: Inspector said it was bad, it wasn't fixed, nobody bothered to fix it or address properly in the inspection response...well that isn't something that failed. It's a known defect and doesn't apply to warranty coverage until it is fixed. It's not that something "new" was reported and after further investigation it was found to have been defective for some time. It's not really a "surprise" or at least it shouldn't be.
You will find some very confused sales reps at other companies that might sloppily suggest something to the extent of, "Oh we cover pre existing conditions" and forget to mention that they don't cover major stuff for 30 days or that they have a longer list of exclusions than covered items or the mac daddy of them all that they don't cover known defects, and agents will occasionally operate as if this is gospel. The concept of buying a policy for $400-$700 in most cases to immediately cover known defects in the hundreds or thousands of dollars is of course illogical and defies common sense - but people are trusting and sometimes don't think all the way through scenarios and the rep that told them wasn't lying they were just confused. It may come back to bite you as an agent (and disappoint your client), so if you need proof it isn't true simply ask them to get a clarification in writing from their manager and you'll discover as agents throughout the country are every day that there's only one warranty company with the best, most common sense approaches to the real estate transaction to foster great client experiences and create more referrals.
See what we're building now at http://www.RealWarranty.net and learn more about the "Gaps" in real estate and how to avoid them at http://www.TheSavvyAgent.net
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This message was edited 1 time. Last update was at 04/03/2020 05:09 PM EDT