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Managing Claims Best Practices The key to preventing and managing claims for your home building business.
LONG LIVE HAPPY HOMES®
By: Alison ShortExecutive Vice President of New Home Division2-10 Home Buyers Warranty®
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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
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Stop them before they happen
#1 Quality control
#2 Have a process in place
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#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
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#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
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#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
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#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
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#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
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#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.
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#2 Have processes in place
SET EXPECTATIONS WITH HOME BUYERSIt’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?
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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
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Learn about the products 2-10 Home Buyers Warranty® offers, visit 2-10.com.
LONG LIVE HAPPY HOMES®