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Archived Copies of Warranty Week
December 2002 to Today
Warranty Accruals for New Homes:
Sometimes they set aside too much and sometimes they set aside too little. All but a few homebuilders seem to lack any sense of aim when it comes to determining how much to accrue for each new home they sell.
July 24, 2014
Homebuilders' Warranty Accruals:
Rather than looking at warranty costs as a percentage of sales, would it be valid to calculate warranty costs per home? Using such a metric makes some homebuilders look very precise and consistent, while others look like they're just guessing how much to accrue per home.
April 23, 2009
Five-Year Warranty Trends, Part Five:
American manufacturers now keep $41.1 billion in their warranty reserves, equal to 17 months' worth of claims paid. And it's been more or less steady at that capacity level for the past five years. Meanwhile, average accrual rates have stayed close to 1.7%, although different industries accrue for warranty at different rates.
April 29, 2008
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