No Call out, Just curious

As the title states.

Where is this money coming from to be able to provide these services? For instance, what if 6 ( or more, the number is really irrelevant) inspectors have a pending claim for a drain pipe that was broken which has caused the slab to shift and now the foundation has to be repaired as well? On top of a complete roof replacement and giving back the original inspection price.

I realize this is probably extreme but I want to know if something like this or similar happened how:

It would be solved
If the services would be wiped out and therefore all the other HI would have to discontinue the offerings
And how I explain it to customers when I am finally ready to sign up. Meaning, if they have the same concern that I currently do.

How can you warranty pipes that you have never seen? And how can you be sure that if 15 inspectors put in a pipe claim that they will all be taken care of? The old adage of "if it sounds too good to be true then it probably is" is ringing in my ears so I figured I would ask the question.

This message was edited 4 times. Last update was at 12/08/2016 11:02 AM EST

They make money by taking in more than they pay out. Warranties are meant to mitigate risk by distributing it across a large pool of people. Only some of the people in the group will even use the warranty, which means that everyone is chipping in to pay for bad things that only happen to a small percentage of people. If a warranty costs $20, they know that they'll only have to pay out $15 on average.

It's similar to car insurance companies. They run a lot of stats on car reliability, repair costs and other factors. That's how they come up with the price of the warranty itself. The idea is to sell warranties on as many cars as possible to make up for the number of claims to pay out. I'm not sure if these companies can write-off claims as a business expense. That's a little out of my area of expertise.

There are different types of warranties. The extended home warranties are usually paid once per year, based on the square footage of the home. If you have a 1,500 sq/ft home, you could pay around $400. You make a call and they send a contractor out, and you're only paying the service fee for coming out. They're beneficial for people who don't have the $100's or even $1,000's to cough up to repair something.

There are limited warranties where you pay for the repairs in full, but get reimbursed up to an aggregate amount.

ok.

So how do these services actually work?

I see that you guys used to have moldsafe and now do not offer it. Why?

This message was edited 2 times. Last update was at 12/09/2016 11:24 AM EST

Our main website is www.RecallChek.com - Any service you provide your clients will be submitted automatically for all your services. There's no monthly/yearly fees. It's a pay-per-use system - we bill the 1st of every month. Then we set up a 1-on-1 call to go over everything and show you how to utilize it all. You can also add or change services any time.

The clients get a RecallChek report that will tell them if there are any recalls on any of the major appliances in the home, and if there is, they get a FREE In-Home repair from the manufacturer. They also receive a monthly RecallTrak email newsletter that checks on any new recalls they have, and they get this for LIFE as part of your home inspection with. This monthly email will also allow them to add/update appliances for FREE at any time. You, as the inspector, can take photos of the data tags from our phone app. This saves you from having to manually enter the model and serial numbers.

They're also provided a 90-Day Warranty ($0 deductible) for anything the inspector deems to be in working condition from the inspection. This is a mechanical and structural coverage that is a part of the inspection.

The SewerGard ($300 deductible) also comes with all full home inspections and covers the underground water and sewer/septic lines from the foundation to the point of connection; for breaks, collapses, leaks, or tree root intrusions. There's up to $4,000 of coverage; $2,000 coverage per line - sewer/septic or water lines.

The MoldSafe ($300 deductible) also comes with all full home inspections and covers any new visible mold that is found that was not visible at the time of inspection. You don't have to do an actual mold test; however, this policy would not cover any pre-existing conditions as the other policies. There's up to $2,000 coverage for remediation.

The Platinum Roof Warranty ($500 deductible) is a warranty on the home that's inspected for leak coverage. We cover the roof for up to $3,000 of coverage that's a part of the full home inspection.

If they're filing a claim on any appliance, water heater or HVAC system, they must include the make, model and serial number of the failed item. If they have a 1-year warranty home warranty, they must submit their claim with them first, then submit that deductible invoice to us for reimbursement as long as it is something eligible for coverage. Then they include a copy of the home inspection, or at least those pages pertaining to the claim they're filing.

Last, we ask for a broken down, itemized estimate (parts & labor) or the bill for reimbursement. We send the checks to the clients directly.