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FOR IMMEDIATE RELEASE

Move Minimizes Denials
CALIFORNIA’S HOME WARRANTY INDUSTRY HEARS
CUSTOMERS; ADDS KEY NEW COVERAGES, VALUE

VENTURA, CA, March 31, 2009 – California homeowners are realizing more added value from their home warranty service contracts today due to the addition of a lineup of new key coverage items offered by the leading firms within the state’s home warranty industry, announces the Home Warranty Association of California (HWAC).

Dan Langston, an HWAC board member, said the bulk of the new coverage items are generally included in the basic contract offered by home warranty companies, though some are offered as optional upgrades.

“Our industry has once again listened to our customers and has initiated important additions in coverage requested by them.   This action not only provides customers with more value from their home warranty contracts, but eliminates many potential claim denials,”  Langston said.  “Listening to our customers has been a big reason why home warranty usage has risen so dramatically from 30 percent in 1975 to approximately 90 percent today.” 

Langston reported that among the notable new coverage items generally offered by home warranty companies in California are:

• Improper installation
• Mismatched HVAC systems
• Permit fees
• Freon recovery
• Haul away of old systems and appliances
• Failures due to lack of maintenance
• Failures due to rust or corrosion
• Failures due to chemical or sedimentary build-up
• Cost of cranes needed for roof-top air conditioning and heating repairs/replacements
• Hydro-jetting of plumbing lines to clear a stoppage

“By covering these previously excluded items, the home warranty industry ensures that its customers now enjoy more value from their home warranty contracts.  This value is a direct result of listening to our customers,”  Langston said.  He added that HWAC data shows that on average home warranty contract holders file over two claims per one-year contract.

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 heaters.  In addition, most HWAC member companies provide additional coverage for plan holders for items such as swimming pool equipment, washer/dryer and kitchen refrigerators.             

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

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3/31/09