April 19, 2012

CODING SYSTEM FOR HOME SERVICE CONTRACT PROVIDERS PROTECTS EVERYONE

Codes to help consumers identify reputable providers.

(Lenexa, KS) In an effort to eliminate confusion and reduce fraud, the nation’s largest trade association in the home service contract industry, the National Home Service Contract Association (NHSCA),  implemented a coding classification system in 2012 to more clearly identify member companies. The system works best when recognized used by consumers. For instance, 2-10 Home Buyers Warranty of Denver has the registration number is NHSCA C0-Code 12H101; HomeGuard Home Warranty of San Jose is NHSCA C0-Code 12H422.
Typically purchased by the buyer or seller during a residential real estate transaction, home service contracts generally provide service, repair or replacement for items such as dishwashers, ovens, disposers, electrical and plumbing systems – and most importantly, heating, ventilation and air conditioning systems (HVAC).  Contracts do not cover pre-existing conditions, but will provide service, repair or replacement for failures arising due to normal wear and tear during the contract period.

“The coding system assures consumers that they are dealing with a registered member of the NHSCA,” reported Mark Celichowski of American Home Shield of Memphis.  Many of these companies are household names – such as Old Republic, 2-10 Homebuyers Warranty, American Home Shield and First American Home Protection. However, the industry has seen an influx of other companies with similar names. Some are even automobile insurance product warranties – this can be very confusing for homeowners. We believe this six-digit code will ensure that our members, who maintain the highest level of professionalism and service, may be easily identified and at the same time combat fraudulent representation” says Art Chartrand Executive Director of the NHSCA.

In early 2017 the NHSCA released a similar system to track non NHSCA members who purport to offer home warranties throughout the United States. Chartrand stated this part of the tracking system is design to assist the industry and regulators. It is largely based upon the system that tracks insurance companies. Home service contract companies are not  insurance providers and provide no insurance benefits as they provide a service, repair or replacement  contract the tis never covered by insurance. 

Company codes may be found under the Contact NHSCA Members tab on its website,
www.homeservicecontract.org.  Not all members operate in all states. Please, check with each company or on member web sites for availability in your area.

The National Home Service Contract Association (NHSCA) is a non-profit 501(c) (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States. For more great industry, media and consumer information, visit  http://www.homeservicecontract.org or call 913-871-5600.

#19