insurance and new home

[G1GY]

Originally Posted by toxic111

The New Home Warranty Program is one of the biggest scams out there....

I have been in the design industry for 12 1/2 years, and in construction industry for over 20... I have to yet see the Home Warranty program actually pay out properly...

For the extra 10-15000 for a new home you pay... its not worth it.. since they will only come in if the contractor does not come to fix problems... PIA

I would love to know how this works. I've been out of the construction industry for a number of years and back when I was still in it it was the builder that was covered by NHW. At that time a builder that wanted to take part in the program would have to put out a surety bond. The bond was in place to be used if the builder didn't take care of any issues that arose.

Could be thinking of the theiving the theiving CMHC when you say 10-15000? If so, that amount is on every home that's mortaged when the buyer starts with of a down payment of less than 25%.

[toxic111]

It is the builder that is covered by NHW... however the builder has to put a bond of 10-15000 (or more depending on the house), of course this cost is in the price of the house.

Now most good builders will come and fix problems right away & you don't have to go through NHW...

If you do have issues and the builder disappears, and you have to go through NHW, good luck... it seems to be pulling teeth to get anything done at all... plan on a long wait..

I know someone going through the hoops right now.. we will see how that goes..

You should see the costs a builder has to go through for NHW if they are doing small multifamily... a real PIA

[mark]

Involved NHW after a falling out with our building, what a joke. First you have to work your ass to get them out then only after you pay a deducible for the builders screwups. Then when they do show, they only want to do the moderator thing between the home owner and the builder. That falls apart out comes the list of acceptable deficiencies (adjacent floor tiles up to 3/8" differance in height, 8' wall out of level by 3/4") so they walk. Nothing gets done, they raise the builders premiun by $5k because of the complaint and he's freaking at you in your kids school parking lot.

[fishguyxd]

As I figured the insurance was one of those perks to the buyer the builder uses the free insurance as a one stop shop a convenience thing so I guess it's not that bad. As far as the nhw that I have heard is just a name and is as good as the paper it's wrote on as other have found out. anyone read the fine print it's terrible.