Abstract
The objective of the study reported herein is to examine the characteristics of the Home Owners Warranty (HOW) Program in the U. S. A. The principal characteristics of the HOW program are summerised as follows ; 1) The HOW program was developed in 1973 by the National Association of Home Builders on the investigation into the NHBC scheme between 1972 and 1973. This program aims not only to protect consumers from defective dwellings but also to supply knowhow of the home building business to the registered builders. 2) The builder's liability continues during one year for all defects of dwellings and two years for defective installations and major structural damages. 3) The insurer covers the repair cost of the major structural damages reported after two years before the expiration of the tenth year. 4) The insurer also covers the repair cost of defects liable to the registered builders in the case of their default. 5) The benefit of the program is assigned to the successive owners. 6) The quality standard of the HOW defines, in a concrete form, the quality level to be attained by the builder, which defines in the same time the defect liable to the builder. 7) The inspection of building process is not done in general by the HOW. 8) The registration of builders is purely voluntary, and offered to the applicant after the examination of the financial stuation, technical ability and reputation of the customers. 9) The insurance is composed of the surety bond in the initial guaranty period and the property insurance for the ten year protection. The payment of the insurer is 4.3 times more than the premium. 10) The dispute is submitted to the HOW's conciliation and, after the failure, reffered to the arbitration under the Expedited Home Construction Rules of the A. A. A.. and finally put on the trial. The registered builders or the insurer must accept the award of the conciliation and the arbitration, but the owner may appeal to the upper stages.
