Learn how to minimize and manage claims placed by homeowners. We’ve compiled tips from our industry expert, Alison Short, Executive Vice President of New Home Division for 2-10 Home Buyers Warranty®, on how to avoid claims and how to best manage them if your homeowner comes back to you.

1. Managing Claims Best Practices
The key to preventing and managing claims for your home building business.
LONG LIVE HAPPY HOMES®
By: Alison Short
Executive Vice President of New Home Division
2-10 Home Buyers Warranty®

2. Why managing claims is important
•
Customer satisfaction
•
Reputation
•
Arbitration
4Reduces your risk of going to court
•
Saves money
4Court costs and lawyer fees can get expensive
•
Put focus back on fixing the issue and avoids escalation of disputes

3. Stop them before they happen
#1 Quality control
#2 Have a process in place

4. #1 Quality Control
When hiring design professionals,
consider the following:
•
Expertise in residential construction
•
Check references
•
Interview – does their working style match yours?
•
Look at other jobs they’ve worked on
•
Tell them what you expect
•
Listen to their recommendations
Land Planner/
Civil Engineer
Architect
Geotechnical Engineer
Structural Engineer

5. #1 Quality Control
When hiring a Land Planner/Civil Engineer,
consider the following:
•
Must understand issues that impact the project
•
Must be familiar with all land use, wetland
and environmental laws
•
May assist with feasibility studies
•
May be required to complete environmental impact studies
•
May assist in rezoning, as necessary

6. #1 Quality Control
When hiring an Architect, consider the following:
•
Make sure they understand your needs and expectations
•
Explore different solutions during conceptional design stage
•
Select the most promising concepts to develop
•
Must be buildable (i.e. Translate well from blueprint to
actual construction) and cost-effective
•
Construction drawings should include detailed floor plans and
elevations (with notes), specifications, framing and electrical plans
•
Review plans with mechanical trades prior to construction release

7. #1 Quality Control
When hiring a Geotechnical Engineer, consider the following:
•
Oversees placement of all fill soils used to support foundation elements
•
Performs soil testing on lots with fill or suspected fill soils
•
Critical in areas where expansive, active or other unstable
soil conditions exist
•
Determines boring depths and spacing
•
Provides sufficient detail and recommendations for the structural engineer
•
Builder should retain documentation of all work performed

8. #1 Quality Control
When hiring a Structural Engineer, consider the following:
•
Responsible for foundation design in areas with expansive, active or
other unstable soil conditions
•
Designs all post-tensioned slabs-on-ground, pier and grade beam and
deep pile foundations
•
Inspects critical phases of construction, such as engineered foundation
pre-pour or pile driving operations
•
Prepares detailed structural plans for multi-family or complex structures
•
Engineers shear walls to withstand seismic and wind loads
•
Understands budget constraints, including costs of materials and labor
to complete project

9. #2 Have processes in place
CONSISTENT CLAIMS HANDLING
Handle each claim the same way to avoid a homeowner claiming the builder was biased. For example, repairing
one homeowner’s defect, but not repairing another
homeowner’s issue who has the same defect.

10. #2 Have processes in place
SET EXPECTATIONS WITH HOME BUYERS
It’s also important to let your buyers know the ins and outs of their new home, post-build. If something goes wrong or they have concerns, who should they call? How do they
submit a formal complaint?

11. Proactive communication
Be open and actively listen to
the homeowner’s complaints
Be considerate to the homeowner
by maintaining goodwill and building trust
Convey information in terms
the homeowner will understand

12. Learn about the products 2-10 Home Buyers Warranty® offers, visit 2-10.com.
LONG LIVE HAPPY HOMES®