High Consumer Interest Cited
 

INDUSTRY ASSOCIATION PROVIDES CONSUMER
CHECKLIST FOR SELECTING HOME WARRANTY FIRM

by Art Ansoorian

BURBANK, CA -- With sales of home warranties for existing homes in California threatening to exceed historically high levels, the Home Warranty Association of California (HWAC)  today released a checklist to aid consumers in selecting a home warranty company.
 

           "The first thing consumers need to understand is that the home warranty industry in California is regulated by the State Department of Insurance.  Prospective buyers and sellers can call the department at (213) 897-8921 to learn whether a particular home warranty company is in compliance with their regulations," said Dan Langston, president of HWAC.

          

           With that as background, HWAC offers consumers the following steps to assist in securing a reputable home warranty firm:

• Seek out the contractor community or contractor association to get a line on  warranty companies.

• Inquire at your local real estate professional or board for a copy of the warranty plans.
  
  Consult your neighbors.  Since home warranties have achieved such a high level of market acceptance in California (8 out of every 10 home sales include a warranty), a large majority of homeowners have experienced the benefits of warranty coverage.
  
• Call HWAC at (818) 881-1183.  The association establishes guidelines that assure consumers that member companies are licensed and abide by a strict industry code of ethics.
  
• Shop for key items including: price, service fees, coverage and company stability.  In California, the cost of basic coverage can range from $220 for a mobile home or condominium to $255 for a single family residence under 5000 sq. ft.  Service fees for trade calls may range from $35 to $100.
  
• Don't hesitate to ask questions about coverages.  Make certain coverages you purchase are compatible with the type of home you are acquiring.  Be aware that when purchasing an older home (10 years or more), there's a good chance the home warranty could involve code upgrades to accommodate modern systems.
  
• Read the contract of the home warranty companies recommended to you and make sure coverages apply to you.  Note exclusions.
  

40 percent of premiums received by warranty companies on active contracts sold during a given year, must be held in reserve.
 
Typically home warranties include standard coverage of the home's heating, electrical and plumbing systems, as well as kitchen appliances, such as a range, oven, dishwasher, and disposal.  Garage door openers, air conditioners, pool/spa equipment, well pumps, solar components, and even limited roof coverage may be available for an additional premium.

Member firms include American Home Shield Corporation, Buyers Home Warranty Company, Continental Home Warranty Inc., Fidelity National Home Warranty Company, First American Home Buyers Protection, HISCO Home Warranty Company, HomeSource Protection of California, Old Republic Home Protection Company, Inc., and United One Home Protection Company of California.