Claims Philosophy & Resolution

StrucSure recognizes a warranty company’s philosophy towards disputes and claims is a key component to a successful relationship between the builder, homeowner, administrator, and warrantor. We understand a philosophy centered on denying claims to protect the bottom line only results in unhappy homeowners, bad press, and arbitration or litigation against all parties.

We also understand the importance of your reputation as a quality homebuilder. We recognize that our philosophy toward claims administration reflects not only on us, but on you as well, and consider that every time we administer a warranty claim. As a result, we approach our claims philosophy with professionalism, sensitivity, and the goal of a quick and fair resolution.

As part of our claims process, we promise the following:

  • All warranty communications from homeowners will be responded to promptly and professionally.
  • We will notify you of any claims received from a homeowner in a timely manner.
  • We will investigate all warranty claims in a timely manner.
  • We will communicate regularly with you and your homeowners and will keep all parties apprised of the claim status.
  • We will only use qualified inspectors, engineers, and contractors to evaluate a claim.
  • If we deny a claim, we will do so only in good faith and only based upon clear grounds for doing so.
  • If we accept a claim, we will promptly adjust the claim and either pay the homeowner the value of the claim or make appropriate repairs.

Mediation and Arbitration   

Dispute resolution clauses are an integral component of our warranty programs and our process as defined in our Warranty Coverage Booklets. Mediation and arbitration is a two-step process, as follows:

  • Mediation. Our warranty coverage booklets establish a mediation process as the first step after a homeowner files a claim. A mediated resolution is a cooperatively agreed-upon settlement of the claim, and it is our goal at StrucSure is to resolve all claims at this stage. Our experience shows that homeowners tend to be happier with a resolution that does not involve an adversarial “us versus them” approach and they leave the process with a better feeling about their builder, StrucSure, and the overall claims process.
  • Arbitration. In rare instances, a dispute will arise that cannot be resolved cooperatively through mediation and arbitration becomes necessary. Homebuyers agree to mandatory arbitration in lieu of litigation in the event of an unresolved dispute when they sign StrucSure’s Home Enrollment Application (HEA) at closing.

Our arbitration clause is enforceable in all states where we do business, is consistent with the current state of the law on alternative dispute resolution, and offers the greatest protection to our homebuilders. In addition to helping builders avoid a lawsuit and the courthouse, mandatory arbitration benefits them by:

  • Providing protection for builders and their subcontractors, vendors, suppliers, and design professionals
  • Requiring an award of attorney’s fees should a homeowner ignore the arbitration language and file a lawsuit
  • Prohibiting class action lawsuits and multi-home group arbitrations