In short, a home warranty will cover home systems and appliances that fail due to normal wear and tear coverage extent based on contract whereas homeowners insurance will not. For this reason, a home warranty is a good investment considering it will be used at some point as all home systems and appliances will eventually fail. Having both policies, secures your investment and relieves the homeowner’s anxiety of pending costs. In the USA, home warranty is a contractual agreement provided to an owner of a house by any of a number of different types of entities such as home builders, risk management groups, or others. The home warranty industry was founded in 1971 by American Home Shield. In the strictest legal sense a warranty of any kind within the United States must adhere to guidelines set at the states' and federal government's levels.
home warranty of america president
Your article didn't express any point of view. In fact, I got the sense you pulled your punches, in the hopes that more warranty companies would pay to become Angie's List reviewed. Here is a simple test to determine if a home warranty makes sense to you. Call your state insurance department and ask them what the loss ratio is for warranty coverage in your state. As an example, the industry average for after market auto warranties is 8%. That means for every dollar the warranty company collects from their clients, they pay out 8 cents on the dollar for claims.