We are proud to have American Home Shield as Master Sponsors at our first Fusion national event happening this week in Las Vegas.
How do you know?
Every day you face important decisions that affect your business for months and years to come. So how do you know it is the right decision? How do you know the companies you choose to work with are a good fit for you and your clients? This is especially important when selecting a home warranty partner in the current industry conditions, this decision can have an even larger impact on your business’s risk in relation to HUD’s recent ruling on how home warranty companies and brokers work together.
Asking questions is always important but asking a potential home warranty partner the right questions will help you shed some light on which companies will be a good fit. Below is an informal interview guide to get you started.
Get to know about the home warranty company as an organization:
- Do you have real “brick & mortar” offices?
- Do you have employees? How many?
- Who owns your company?
- Who are your officers and directors?
- How experienced are you in the home warranty industry?
- Are you licensed where you need to be?
- Who takes the calls from your customers with a home warranty once the “check clears”?
Get to know the approach they are taking to the HUD/RESPA ruling:
- Ask yourself: Are the services you are being paid for compensable services?
- Are you (the home warranty company) utilizing these services you are paying for within your business?
- Has the fee for services been validated by a third party?
- What kind of training and support will you provide to my staff and agents?
- How does your program incorporate the factors HUD referenced in its ruling?
- What process did you go through in evaluating the HUD ruling and in designing your program?
Get to know about a company that is offering the option of a joint venture:
- Will this joint venture be solely related to your home warranty business or will I, in effect also be investing in other aspects of your business?
- Where will the funds be held and or invested? In the U.S.? In other countries?
Get to know about potential insurance regulatory issues:
- Do you market your warranty service as a home warranty/service contract or as insurance?
At American Home Shield we have spent a great deal of time and resources defining what this ruling means to brokers and also spoke with many brokers across the country seeking their insight into potential solutions. This feedback served as our litmus test as we developed our solution. Visit the AHS booth at Fusion in Las Vegas or contact your local AHS Business Partner for more information.