A look at local professional and trade groups

BY ASSOCIATION:

National Home Service Contract Association

ã Su Bacon/Special to The Star

National Home Service Contract Association

12710 S. Pflumm, Suite 200

Olathe, KS 66062

(913) 768-4700

www.homeservicecontract.org

Established in March 2004, this trade organization serves home-warranty companies.

Changing lifestyles have helped spur demand for home warranties. Typically, home warranties cover heating and air conditioning systems, built-in appliances, water heater, plumbing and the electrical system when they break down due to normal wear and tear. Homeowners pay an annual fee for the warranty and then a flat fee for services, similar to a co-pay at a doctorπs office. Most warranty companies have a toll-free telephone number that warranty holders call when something breaks down. The company then contacts a service provider in the homeownerπs area and the local repair company makes arrangements with the homeowner for the service call.

M embers: Seven national companies who adhere to the associationπs code of ethics.

Mission: The purpose of the association is to nurture the home-service contract industry and its use by the public nationwide.

Dues: Graduated quarterly dues starting at $1,000, depending on the number of states the member company operates.

Annual operating budget: Not given.

Staff: Full-time management by staff of Chartrand Law Office in Olathe.

Meetings: An annual national meeting.

Other member services: The association informs members about changes in laws and practices, provides full-time regulatory and legislative counsel and lobbying efforts to improve state laws, conducts educational programs and promotes consumer awareness of member companies.

What is the most compelling challenge for your members?

The challenge is twofold, said association President Mark Lightfoot of American Home Shield Inc. of Memphis.

State lawmakers need to pass laws covering home-service contract companies and homeowners need to be made aware of the benefits of home-service contracts.

How are you helping members meet this challenge?

The association promotes the message to state legislators and regulators that home-service contracts provide repairs on the major items in the home that will break down due to normal wear and tear, Lightfoot said.

≥This is not insurance where coverage is purchased åjust in caseπ or to pay dollars for damages from an accident,≤ Lightfoot said.

The association strives to make consumers aware of the benefits of a home-service contract: ≥Where homeownerπs insurance ends, home-service contracts begin,≤ he said. Consumers can find information and answers to their questions about home-service contracts on the associationπs Web site. The association recently published a brochure about home-service contracts that is being distributed to real estate agents nationwide. Contracts often are purchased during real estate transactions by home buyers and sellers.