Established in l984, the Home Warranty Association of California’s specific purpose was to remedy after-sale problems occurring with existing home sale transactions. Today member firms of HWAC are responsible for over 98% of the home warranty contracts in California.
Member firms of HWAC are:
American Home Shield Corporation; Buyers Home Warranty Company; Fidelity National Home Warranty Company; First American Home Buyers Protection; Old Republic Home Protection Company, Inc.; 2-10 HBW Warranty of California.
A home warranty is a service contract for an existing home that covers a home’s major operating systems and appliances for one year, typically after the close of escrow. The contract provides for the repair or replacement of covered home systems and major built-in appliances; the homeowner pays only a small service charge for each trade call. Basic and optional coverages may vary from company to company. Contact an HWAC member for details.
Over the last l0 years or so, there has been a significant rise in home warranty usage. In fact, today nearly 9 out of every l0 existing home sales includes a home warranty. This compares to under 25 percent of sales some l0 years ago.
Moreover, members of HWAC provide service to homeowners on an average of l.7 to 2 claims per contract per year. This represents an annual savings to California homeowners of over $100 million.