Modular Home Warranty Service Expectations
When you buy a modular home, you expect it to arrive without mistakes, defects, or damaged materials. If you discover any, you expect the manufacturer to repair or replace them. You also expect the manufacturer to provide this warranty service at no cost to you. Manufacturers usually understand these expectations, but they have a few of their own. They will accept responsibility for problems found when your home arrives, but they expect your dealer, as well as you and your general contractor (GC), to accept responsibility for any damages incurred after that. This seems fair, and in principle it is. When you purchase your home from a dealer who completes the GC work, your warranty service expectations are likely to be met. When the dealer and GC are separate companies, however, the situation can trigger contention and distrust.
Modular Home Manufacturer’s Quality Inspections
A modular home is typically built with most of its interior complete. Walls, cabinets, tubs, doors, moldings, and electrical outlets are almost always installed at the factory. All of these products can be damaged accidentally, and this can happen as easily at the factory as at your site. Your home will be thoroughly inspected before it leaves the factory. The manufacturer will try to repair or replace any defective or damaged goods before shipping the home. When that is not possible without causing a delay, the manufacturer will document the problem, make plans to fix it at your site, and inform the dealer so that you are not surprised. Either way, the inspection enables the manufacturer to document any warranty problems with your home.The inspection, however, does not preclude disagreements between the manufacturer, dealer, and GC. If you discover any damage to your home after it is delivered and set, it could have been caused by the manufacturer even though it is not listed on the inspection report. But it could also have been caused by someone on your site.
The manufacturer could have missed an item, or an employee could have caused the damage and failed to report it. The same damage, however, could have been caused by one of the GC’s subcontractors, who may or may not have been aware of it. You or a friend could have unknowingly caused the damage.
Modular Home Warranty Service Procedures
Under the circumstances, it is not surprising that there are occasional disagreements over who is responsible for damages. The modular industry has developed a procedure for handling these warranty service situations. Modular manufacturers attempt to minimize these misunderstandings by requiring their dealers to identify and report in writing any warranty service issues right after the set. You can expect your dealer to insist that you complete a warranty service inspection, and sign the resulting written report. If the GC is separate from your dealer, ask him to sign the warranty service report along with you. You should receive a copy of the warranty service report that is also signed by the dealer.
The exact time allowed for the inspection varies from manufacturer to manufacturer, with some giving the dealer 24 hours after the set and others allowing him a few days for some items and a few weeks for others. Items that are easily damaged on site, such as installed vinyl floors and carpeting, are less likely to be covered beyond a few days unless there are extenuating circumstances. This warranty service procedure allows the manufacturer to limit its responsibility to preexisting conditions. Consequently, if you find a damaged item after the reporting period expires, the manufacturer will assume that the damage was caused by someone on your site, and will not accept responsibility for correcting it.
Since the set-day activities can cause accidental damage to a home, some manufacturers require the dealer to complete the warranty service inspection as soon as the modules are delivered. This is common with manufacturers who ask their dealers to select an independent set crew. Since the dealer selects the crew, the manufacturer wants the dealer to assume responsibility for any set-day damages. The manufacturer secures this accountability by having the dealer complete its warranty service inspection before the set. While this may seem reasonable, a delivery day inspection is unfair to the dealer and the customer. It is impractical to complete an accurate inspection on delivery day, given the poor lighting available in each plastic-wrapped module. It is also difficult to inspect a module when it is stuffed with ship-loose materials. Waiting until after the modules are set allows for a more accurate inspection. If at all possible, resist a delivery-day inspection.
In my next blog I will discuss disagreements about warranty service coverage.