CONCORD, Calif.--(BUSINESS WIRE)--With Californians continuing to purchase home warranties as part of existing home sales at a rate of approximately 9 out of every 10 transactions, the president of the state’s home warranty industry attributes it to increased recognition that managing household expenses is paramount during a challenging economy.
Stating that home warranty sales maintained around a 90 percent market share performance for all of 2008, Billy Jensen, president of the Home Warranty Association of California (HWAC), reported that approximately 300,000 home warranties were sold in 2008 for existing homes.
“People are more conscientious today, and are sensitive to the fear of the unknown. A home is still the largest investment people make, and many home buyers are financially strapped when they move in. Typically, they can ill afford a major expense. Home warranties provide peace of mind if something goes wrong with a home’s systems or appliances during the term of coverage,” Jensen said.
Underlining that homes are still the largest investment people ever make, Jensen added that home warranties are particularly valuable in providing peace of mind during today’s short sale and foreclosure dominated market where many homes sit dormant for extended periods.
Additionally, Jensen continued, “Sellers continue to utilize home warranties for an added edge in a competitive housing market particularly during this economy.”
Typically, a home warranty covers a home’s major operating systems and appliances against breakdowns due to normal wear and tear for one year after the close of sale. Items covered include plumbing, heating and electrical systems, most built-in appliances, and water heaters. In recent years, most HWAC member companies have provided additional coverage for plan holders for such items as garage door openers, washer/dryers, refrigerators, swimming pool/spa, roof, and other miscellaneous optional coverages.
About the Home Warranty Association of California
HWAC is a statewide organization of home warranty companies representing approximately 95 percent of contracts sold in California.
Member firms are 2-10 HBW Warranty of California, Inc., American Home Shield of California, Fidelity National Home Warranty Company, First American Home Buyers Protection, HISCO/CRES Home Warranty, LandAmerica Home Warranty Company, and Old Republic Home Protection Co., Inc.