Californians Purchase Record of over a Half Million Home Warranties in '04; Product's Value Cited.

SANTA ROSA, Calif. -- A robust housing market, the increasing value home sellers and buyers place on the product, and the industry's focus on quality home repairs are being credited as central factors contributing to a record number of home warranty contract sales in California during 2004, according to the Home Warranty Association of California (HWAC).

HWAC officials report that a total of 500,710 home warranty contracts were sold during 2004, up from 483,521 sold in 2003. This represents an extension of a pattern in recent years of approximately nine out of every 10 resale home transactions including a home warranty, the association notes.

"This record high level of home warranty sales reflects the continuing hot housing market, the high value home sellers and buyers place on owning a home warranty, the emphasis the entire industry is providing on quality home repairs, as well as the convenience of utilizing a home warranty for solving home repair needs," said Mark Lightfoot, president of HWAC.

Lightfoot noted that the typical home warranty customer utilizes their contract an average of over two times per year. "This means customers are receiving precious value for their hard-earned dollars, particularly when you consider that the cost of a one-year home warranty averages around $250," said Lightfoot.

He emphasized that the purchase of a home warranty "is truly an outstanding value in relation to the growing cost of home repairs."

In this connection, Lightfoot declared that it is important for consumers to understand what home warranties cover and what they do not.

"Basically, a home warranty covers appliances, plumbing, electrical and mechanical systems of the home against breakdowns due to normal wear and tear. Home warranties do not cover acts of nature, flooding, wind damage, etc. Essentially, home warranties protect consumers from the costly everyday breakdowns of your heating system, water heater or dishwasher," he said.

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

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