FREQUENT QUESTIONS AND ANSWERS

ABOUT HOME WARRANTY CONTRACTS

Special to THE LOS ANGELES DAILY NEWS

By James Armstrong
President, Home Warranty Associaton of California

             With home warranty contract sales for existing homes in California now part of over nine out of every 10 home sales, the Home Warranty Association of California (HWAC) has issued a 10-point list of frequently asked questions and answers to assist home buyers and sellers contemplating the purchase of a home warranty.

      Initially, consumers should understand what warranties cover and what they do not cover.  Accordingly, home buyers and sellers are well advised to consider these 10 key questions and answers when purchasing a home warranty.

 Q.  Which components of the home will be covered by the warranty?
 A.  Typically, home warranties are one-year contracts that cover a home’s mechanical systems, including plumbing, heating, electrical, water heater and most built-in appliances that break down due to normal wear and tear.  Structural items are generally not covered.

 Q.  Is additional coverage available?
 A.  Yes.  Warranty coverage can be extended to cover pool or spa equipment, air conditioner and well pump.  Consult your warranty company for details.

 Q.  How much is the fee for a service call?
 A.  Between $35 and $50.

 Q.  What are the total dollar limits on the warranty, and what are the limits for individual items?
 A.  Generally there are no limits, except for certain items, such as concrete encased plumbing lines.

 Q.  Is the warranty company licensed.
 A.  All member firms of HWAC are licensed by the California Department of Insurance.

 Q.  What hours is the customer service department available to answer questions and process claims?
 A.  Usually 24 hours a day.

 Q.  Will licensed, insured contractors be used to make repairs?  How long is the warranty on repairs or replacements?
 A.  All HWAC member warranty companies strive to use licensed, insured contractors.  Most contractors will guarantee their work, and for a period of time following completion of work.  In the event a component is replaced, the manufacturer’s warranty takes effect.

 Q.  What is the typical turnaround time for a claim to be dispatched and completed?
 A.  When a homeowner makes a claim during a normal business day, the contractor is dispatched the same day.  For emergencies at night, weekend or holidays, most warranty companies offer emergency service.

 Q.  Can the warranty be renewed at the end of the first year?
 A.  Usually the homeowner is offered a renewal subject to the policy of the individual warranty company.

 Q.  In the event the homeowner is not satisfied with the work, is there a consumer complaint department?
 A.  Yes.  The [California] Department of Insurance “hotline” (213-897-8921).  For its part, HWAC monitors its member firms’ adherence to a professional code of ethics, optimizing established standards of practice throughout the industry.