If the builder doesn’t approve your claim, the next step is to dispute. There are two main ways to dispute a claim.
Mediation:
The first step is mediation, where a third party will sit with the builder (or warranty representative) and homeowner to facilitate a discussion. The hope is to come to a mutually agreed-upon resolution without taking the dispute any further.
Arbitration or court:
If mediation does not result in a solution, the dispute moves to arbitration or litigation. Most warranties have a requirement that a homeowner submits disputes through arbitration rather than a lawsuit.
Arbitration is less formal than court. An arbitrator will look at all the facts and make a decision about the dispute. There are costs to the homeowner for both arbitration and litigation.