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Problem Solving, Budgeting Qualities Cited
CALIFORNIANS VALUE HOME WARRANTIES AT HIGH LEVEL DESPITE ‘CHALLENGING MARKET’, TRADE GROUP REPORTS

VENTURA, CA, May 14, 2008 - Californians are steadfast in recognizing the value of protecting their homes even during a challenging market as resale transactions continue to include home warranty coverage in approximately nine out of 10 cases, according to the Home Warranty Association of California (HWAC).

Mark Lightfoot, president of HWAC, reports that 266,437 home warranty sales were recorded in California during 2007. Based on sales of resale properties, this represents a market share of 88 percent. Lightfoot noted that home warranty market share has been firmly around 90 percent for over six years.

"Realtors and homeowners understand the value of protecting homes with home warranty coverage. The conditions in the current real estate market are challenging, yet consumers continue to invest in home warranties,” Lightfoot said.

Lightfoot also reported that California homeowners renewed 336,317 home warranties in 2007, underlining a strong trend of satisfaction with the service contracts.

"Renewals represent another sign that homeowners are clearly experiencing the problem-solving and maintenance budgeting benefits of home warranties, a quality that is magnified during difficult economic times,” Lightfoot said.

He noted that home warranties are renewed at a rate of over 40 percent beginning with year two of home ownership. Significantly, that rate rises to approximately 75 percent in the third, fourth and fifth years. "This trend indicates a substantial level of rising satisfaction among home owners and their desire to retain home warranties once they have them,” Lightfoot declared.

Typically, a home warranty covers a home’s major operating systems and appliances against breakdowns due to normal wear and usage for one year after the close of sale. Items covered include plumbing, heating and electrical systems, most built-in appliances, and water hearers.

About the Home Warranty Association of California (HWAC)

HWAC is a statewide organization of home warranty companies representing approximately 95 percent of contracts sold in California.

Member firms are American Home Shield of California, LandAmerica Warranty Company, Fidelity National Home Warranty Company, First American Home Buyers Protection, Old Republic Home Protection Co., Inc, and 2-10 HBW Warranty of California, Inc.

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5/14/08