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 CONTACT: James Armstrong (800) 831-8200 Art Ansoorian (818) 881-1183
DUBLIN, CA -- For the first time since the establishment of the home warranty industry in California 25 years ago, over nine out of every 10 existing home sales in the state were sold with a home warranty contract in place during 2002, announces the Home Warranty Association of California (HWAC). HWAC officials report that a record 455,000 home warranties were sold during 2002, representing a 90.7 percent market share based on existing housing sales figures provided by Dataquick. Moreover, the total number of home warranty contract sales exceeded the previous standard established in 2001 by some 16 percent. "The performance of the home warranty industry during this period is unprecedented. In these terms, it illustrates the great acceptance of home warranties since these contracts are not required to be part of a real estate transaction. “This product, which provides superb service to the consumer, is being pencilled into transactions virtually as a standard item despite the fact that homebuyers today are extending themselves financially to obtain the most house they can afford," said James Armstrong, president of HWAC and executive vice president of HISCO Home Warranty of Dublin, CA. HWAC also emphasized that its latest data shows that consumers are also renewing home warranty contracts at record rates. The association reports that 255,230 of the one-year contracts were renewed during 2002, a 60 percent increase from just two years ago. "This is a clear indicator that homeowners not only recognize the value of home warranties, but have a greater understanding of how to use them," said Armstrong. Typically, a home warranty covers a home's major operating systems for one year after the close of escrow. Items covered include plumbing, heating and electrical systems, most-built-in appliances, and water heaters; and optional coverages are available to cover items such as air conditioners, pool equipment, washer/dryers and refrigerators. HWAC is a statewide organization of home warranty companies representing approximately 95 percent of contracts sold in California. Member firms include American Home Shield, AON Home Warranty, Buyers Home Warranty Company, Fidelity National Home Warranty Company, First American Home Buyers Protection, and Old Republic Home Protection, Inc. ## |
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