A home warranty is a service contract for an existing home that covers a home’s major operating systems and appliances for one year, typically after the close of escrow. The contract provides for the repair or replacement of covered home systems and major built-in appliances; the homeowner pays only a small service charge for each trade call. Basic and optional coverages may vary from company to company.
Typically covered systems and appliances generally include a home’s

• Electrical System
• Central Heating
• Interior Plumbing
• Water Heater
• Ductwork
• Dishwasher
• Oven/Range/Stovetop
• Trash Compactor
• Garbage Disposal
• Garage Door Opener
• Air Conditioning System (optional)
• Pool Equipment (optional)
• Spa Equipment (optional)
• Washer/Dryer (optional)
• Refrigerator (optional)

Over the last l0 years or so, there has been a significant rise in home warranty usage. In fact, today nearly 9 out of every l0 existing home sales includes a home warranty. This compares to under 25 percent of sales some l0 years ago.
Moreover, members of Home Warranty Association of California provide service to homeowners on an average of l.7 to 2 claims per contract per year. This represents an annual savings to California homeowners of over $100 million.

Copyright of Home Warranty Association of California

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