Category: Press Releases

Check on potential providers at homeservicecontract.org

Lenexa, KS —The National Home Service Contract Association (NHSCA) is cautioning consumers to research service contract providers before signing on the dotted line to be assured they are registered and fully compliant with state laws. The easiest and quickest way is to be sure you are dealing with a registered member of the NHSCA.

 “Members of the NHSCA adhere to a strict Code of Ethics which promotes sound and ethical business practices,” said Jeff Powell of longtime NHSCA member, First American Home Protection.  “They are reputable, licensed home service contract providers in good standing. Unfortunately, there are other providers out there that don’t meet our quality standards and even operate illegally.”

Home service contracts, (often referred to as home warranties), 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) which become inoperable due to normal wear and use.  Home service contracts also have limitations. Paying particular attention to the contract’s terms and conditions can also help avoid confusion when a service call is needed.

Home service contract companies are regulated in all states. In about 25 states, specific laws require prior registration or license from the state prior to transacting business. In other states, providers are regulated by the state attorney general’s office.

Consumers should consider the following items to be “red flags” that necessitate further research:

• Lack of a physical address on company web site. A post office box is fine, but if no address is it could be a sign that the company is trying circumvent state regulations
• Advertising prices and services at large discounts that are far beyond industry norms
• Lack of an NHSCA Company Code that designates NHSCA registration as a trusted and qualified service provider.

 “The NHSCA works with state and federal regulators to not only combat fraud, but assists in ensuring that all providers are, at a minimum, compliant with their laws, “ Powell said. “Realtors may also be an excellent resource, however if you do suspect fraud, be sure to visit the NHSCA website or contact your local regulator, to report it immediately.”

To confirm NHSCA company codes and report suspected fraud, just visit www.homeservicecontract.org.
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  https://homeservicecontract.org or call 913-871-5600.

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National Home Service Contract Association cautions home buyers about limitations on HVAC testing in colder temperatures

Lenexa, KS – The National Home Service Contract Association is cautions consumers purchasing an existing home in the winter that colder temps make it difficult to determine the proper function of residential air conditioning units.

HVAC professionals generally caution that anytime the mercury falls below 65 degrees Fahrenheit, a home inspection report can only verify that a unit will turn on, but cannot verify it actually cools without high risk of severely damaging the compressor.  In winter, the coldest spot in a refrigeration circuit is in the compressor crankcase, located outside the home. Because refrigerant naturally migrates to the coldest spot in the unit, if the system is tested, the refrigerant may travel into the compressor, causing damage.

The NHSCA urges buyers purchasing an existing home to hire a qualified and experienced home inspector, pay special attention to the testing of their HVAC unit and request the seller provide a home service contract as part of the real estate transaction to help insulate them from costly repair or replacement costs of for undetected problems in future months.

To offer reassurance that the system is operating properly, real estate agents representing the buyer will generally ask the seller to sign a form stating the date of the last time the air conditioning system was fully functioning. However, if a home has been on the market for an extended period of time, this statement may not provide accurate information on the current condition of the unit.

“If a house has been sitting empty and an undetected leak has slowly depleted the refrigerant, the new owner will have no idea until they turn the air conditioning on in the summer,” says Art Chartrand Executive Director of the NHSCA. “At that point, a service call to get the refrigerant level back up and the unit running will likely cost in excess of the cost of an annual home service contract on the entire home. “  One also need to understand that low levels freon would indicate a leak in the line that will continue to deplete refrigerant until it is located and fixed. That translates into more repair dollars for the homeowner.

The NHSCA also notes that in the past some homeowners have opted for a temporary fix by simply having refrigerant added to their systems to keep them operational. However, the dramatic increase in the cost of refrigerant in recent years can make this approach as costly as a repair. Freon is currently scheduled by the EPA to be unavailable after 2020 due to its adverse environmental concerns.

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), but do not cover pre-existing conditions. Paying particular attention to the contract’s terms and conditions can help avoid confusion when a service call is needed.

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  https://homeservicecontract.org or call 913-871-5600.

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Seller-Purchased Contracts Offer Convenience and Benefit for New Homeowners

(Lenexa, KS)  Home sales  can get hot and can slow down in quickly changing markets these days, but a home service contract always makes sense for sellers and buyers. Homeowners should get the most of them.

Home sellers very often  purchase home service contracts on behalf of the buyer as an added incentive.  They also may receive protection during the listing period and fewer issues after the sale.  To receive the maximum benefit and convenience of these contracts, the National Association Home Service Contract Association offers the following guidance.

Review the home service contract to be sure that you understand all terms and conditions.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).

Maintain all appliances and household systems to keep them in good, efficient operating order. You will benefit from uninterrupted service and as well as potential energy savings.

Request optional coverage be included if you feel you may need coverage on items not typically specified under the standard coverage. If the home you are purchasing includes features such as a swimming pool, septic tank or spa, advise your agent to request this optional coverage.

Keep a copy of your contract easily accessible and post the providers toll-free service number in a visible location like the refrigerator door.

Call your contract provider at the first sign of trouble. Do not call a repair contractor directly.One of the benefits of your home service contract is that your provider works with a network of prequalified and licensed contractors in your area. If a breakdown poses an actual risk to your health or safety (such as lack of water or heat in freezing temperatures) most providers will work to expedite emergency repairs.

Follow up with your provider if for some reason you are not satisfied with the service provided. They will work with you to resolve your concern.

Be aware of when your contract expires. For your convenience, many companies will provide automatic renewal of your contract. If you did not wish to renew, contact your provider right away to exercise your cancellation rights.

 

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  https://homeservicecontract.org or call 913-871-5600.

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MEDIA CONTACT: Art Ansoorian, Ansoorian and Associates • 805-653-1648 • Email

(SAN RAMON, CA – Sept. 1, 2012)  By reducing overhead and improving operations, the home service contract industry in California has done what few industries have been able to do – increase coverage without passing the cost along to consumers.

“Today home service contract providers are covering twice as much as when the industry began in the 1970’s with very little increase to the price of overall coverage,” Gwen Gallagher, board member of the California Home Service Contract Association (CHSCA) and president of Old Republic Home Protection Co., San Ramon, said.  “When the industry started in the late ‘70s, the standard price of coverage was about $265 with a $35 deductible.  Prices in California today are approximately $260 with a $60 deductible.”

Home service contracts (also referred to as home warranties) 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). * Many home service contract providers also offer a menu of optional items such as pool and spa equipment, well pumps, and free standing appliances such as refrigerators and clothing washers and dryers for an additional fee. 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.

Home service contracts were originally designed to offer homeowners buying resale homes protection against potential budget-breaking costs of major system or appliance failures.  In addition, contracts provided “peace of mind” while helping Realtors compete with new homes on the market. According to the CHSCA, 84 percent of homebuyers today purchase a resale home.

“Contracts initially covered heating and electrical systems, standard kitchen appliances such as dishwashers, ovens and disposals, and plumbing, including toilets and water heaters.  That was basically it,” Gallagher said. “Today we also cover items such as well pumps, spa equipment, septic tanks and salt water cells and provide more comprehensive coverage which can save individual customers hundreds of dollars annually. ”

About CHSCA

Members of the new CHSCA, which provide approximately 95 per cent all home service contracts in California, include 2-10 Home Buyers Warranty, American Home Shield Corporation, BPG Home Warranty, Fidelity National Home Warranty Company, First American Home Buyers Protection, HISCO/CRES Home Warranty, HMS National/Cross Country Home Services, Inc., Home Security of America, Inc., Home Warranty of America, Inc. and Old Republic Home Protection Co., Inc.    For more information, visit www.homeservicecontract.org/california.htm.

About the National Home Service Contract Association

The NHSCA is a non-profit 501© (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States.  To learn more about the NHSCA and to find answers to the most common questions regarding the purchase of home service contracts, visit www.homeservice contract.org http://nhsca.iugonow.com

           

           

 

 

 

 

 

 

Association Adopts Automatic Renewal Model to Protect Consumer Interests

(OLATHE, KS – November 8, 2011)

The National Home Service Contract Association has taken the lead to protect consumers from a lapse in coverage by drafting and promoting a model automatic renewal clause for the home service contract industry.

In an effort to create a balanced approach in favor of consumers, the NHSCA model allows consumers to choose automatic renewal to prevent a lapse in service, while also offering a simple process to cancel if their preference changes regarding automatic renewal.

Many customers prefer the convenience and uninterrupted service an automatic renewal provides. However, some states have erroneously suggested that all automatic renewals are bad for consumers. This is not the case. “The issue is how should an industry respond when a customer decides they did not intend to renew,” said Mark Celichowski, President of the NHSCA. ” We take an approach favoring the consumer.” The actual NHSCA model can be found in the NHSCA Resource Center.

“Automatic renewals on consumer contracts are a beneficial consumer choice, but so is the consumer’s right to cancel. Our model law was developed with input from state legislators as a balanced and fair approach to preserve consumer choice and prevent abuse,” Arthur J. Chartrand, NHSCA Counsel, said. “As an association, we wanted to take the lead and give states model language.”

The NHSCA is a nonprofit 501(c) (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States. To learn more about the NHSCA and to find answers to the most common questions regarding the purchase of home service contracts, please visit us at www.homeservicecontract.org

MEDIA CONTACT: Nancy Besa, Besa Public Relations • 816-674-4775 • Email

 

NHSCA and Angie’s List Offer Similar Advice, but NHSCA provides vetted and guaranteed contractors.

(Lenexa, KS)   Every year, millions of home service contracts (often referred to as “home warranties”) are purchased nationwide—a number growing dramatically every year as consumers seek home care solutions. While a growing number are marketed directly to consumers, the majority of contracts remain purchased as part of a real estate transaction and  subsequent renewal.

There is little doubt that these numbers reflect the fact that consumers are seeking security and financial protection.  Home service contracts provide the peace of mind that helps alleviate potential concerns of both home sellers and buyers during the resale transaction and for one year following the close of sale. In addition, renewal customers have continued protection from aging home systems, appliances and utilities. “Today’s consumer either lacks the skills, the knowledge or the desire to properly maintain their home and fix things that breakdown.  Many children simply lack the time to handle these needs for their parents,” according  to Art Chartrand Executive Director and Counsel of the National Home Service Contract Association (NHSCA).

Internet based Angie’s List of Indianapolis often publishes reports advising consumers to be smart when buying a home service contract. We could not agree more. We support both a consumer’s need and right to understand all consumer contracts they purchase.  “Angie’s has appeared to grow more fond of the home service contract industry in recent years as her “list” and home service contract providers work hard to find the best local contractors who actually come in to your home,” added Chartrand.

Home service contracts will vary in the details of benefits provided. The market is very competitive and consumers have many choices when it comes to benefits, service and pricing. NHSCA member contracts are typically only a few pages and outline the complete terms and conditions of coverage. Consumers should compare contracts and consider the systems, appliances and utilities unique to their home property. This will
help consumers better understand their needs. If you live in a rural area, you may wish to consider adding well pump or septic tank protection. Do you have a pool or a spa? Do you wish to cover a freestanding appliance such as a refrigerator in your garage?

While the price of the product and optional coverage available is important, so are many other factors. Consumers should consider a number of questions in order to ensure they are making a wise purchase. Is the contract written in simple, easy to read and understandable language? Does the company clearly identify what services are not covered? Is the trade fee for each service call clearly disclosed? Is there an aggregate limit per system or appliance, per service call or per contract? Can a service call be placed 24/7 every day of the year? Is emergency service available when necessary? Is there a clear process that can be followed if the services rendered are not satisfactory?

It is also important for consumers to acknowledge that “everything” cannot be covered by a contract that typically costs about $500 a year. While contracts cover many breakdowns, there must be reasonable limitations. NHSCA members paid out well over one-half billion dollars to local contractors in 2010 to service customer’s homes. Even so, NHSCA members are always working to make contracts easier to read and understand as the industry strives to close any potential gap between available benefits and customer’s
expectations.

Consumers should also know that their home service contract provider has a solid reputation for serving its customers. References from real estate professionals and friends and a rating from the Better Business Bureau can be extremely helpful in the selection process. Either the state attorney general or insurance commissioner regulates all providers. (In Texas it is the Texas Real Estate Commission). Contact the appropriate state agency to inquire on a provider’s standing.

“If a consumer doesn’t take the time to perform their own ‘due diligence’, they may well end up as another ‘statistic’,” Gwen Gallagher, President of Old Republic Home Protection, said. “What is important to
consider is that out of the millions of contracts sold and million of service calls provided by the home service contract industry every year, only a very small fraction of consumers were not satisfied with either the coverage or service they received.

Some consumers may lodge a complaint on Internet sites such as Angie’s List where they
may often be viewed with disproportionate attention. The fact is the overwhelming
majority of consumers value their home warranty protection and remain quite happy with
both coverage and service.  Chartrand also noted that  “While Angie’s List may provide a “list” of local contractors for you to call, NHSCA home service contract providers actually vet these local contractors, call them for you, service or replace your broken appliance, pay them for you and then guaranty their work. Our members not only go the whole 9 yards, they go the full 100 yards.”

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  https://homeservicecontract.org or call 913-871-5600.

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The National Home Service Contract Association says to get all the facts before relying on various internet-based services that rank or rate home service contract providers.

(Lenexa, KS ) Some internet-based web sites have begun “rating” home service contract providers, but such can be biased or based on a limited and perspectives. The NHSCA cautions consumers to be aware of the inaccuracies of such ratings. The ratings are generally not subject to quality control or statistical analysis, and most of these services specifically state that they accept no responsibility for the quality or accuracy of their references or ratings. Having offered this caution, some of these sites are legitimate and provide some useful consumer information. 

It is important for consumers to be aware that many internet ratings are generally not based on the number of complaints as relative to the size of a company. For example, a company with three poor reviews could have 3,000 other very satisfied customers. Unfortunately, this type of data is rarely collected or shared, and therefore proves inadequate for the consumer to truly make an informed decision. Consumers may be better served by organizations such as the Better Business Bureau. Or just stay with a registered member of the NHSCA.

Some internet sites openly accept advertising dollars from the companies that they review. Organizations serving in the best interest of the consumer, will not accept advertising due to the conflict of interest it presents. Members of the NHSCA do not accept paid advertising from their independent network contractors. This practice allows them to maintain the highest level of standards and integrity. If a contractor does not meet performance standards, they are not retained. Consumer complaints are investigated and NHSCA raises concerns regarding reviews of home service contracts handled swiftly, assuring contract holder’s concerns are addressed effectively and efficiently.

Members of the NHSCA continue to be among the most highly recommended service providers by real estate professionals everywhere. Home service contract providers of the NHSCA are regulated in all fifty states under applicable consumer protection laws and are specifically licensed or registered in nearly half the states.

Both regional and national home service contract providers support large independent contracting firms as well as small family-owned, businesses in the communities they serve. They strive to provide consumers with the best local plumbers, electricians, appliance repair and HVAC contractors a community offers.  When a “preferred rated” contractor from an internet rating service does not perform, the consumer has little, if any, recourse. When a local contractor dispatched by an NHSCA home service contract provider fails to meet expectations, the provider typically works with the consumer to resolve their concerns.

The industry offers contracts to repair or replace most household appliances and systems that become inoperable due to normal wear and tear. Contracts generally cover dishwashers, ovens, disposers, electrical wiring and plumbing systems and most importantly, heating, ventilation and air conditioning systems (HVAC). Many home service contract providers also offer a menu of optional items such as pool and spa equipment, well pumps and freestanding refrigerators, for an additional fee. Contracts are typically annual and renewable. Members of the NHSCA effectuate the actual diagnosis, repair or replacement through a network of independent contractors.

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  https://homeservicecontract.org or call 913-871-5600.

 

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Homes Service Contract Industry Reaffirms Your Need for a Real Estate Agent

(Lenexa, KS) Whether we are in a buyers market like the years following 2007, or in a sellers market as hit high gear  in 2016, real estate agents remain invaluable.

A side effect of this seesaw of  economic change is that today’s home buyers are more savvy and looking for added value with their purchase. However, they may not always know where that value can be found. That is why working with a knowledgeable and resourceful real estate agent is more important than ever before.

One way agents are protecting their clients and themselves is by educating homebuyers and sellers on the benefits of products such as home service contracts.

Home service contracts provide service, repair and even replacement of major home systems and appliances. At an average cost of $350 – $550 a year, these contracts typically cover items such as heating systems, interior plumbing, electrical systems, water heaters, dishwashers, and garbage disposals.

Home sellers, buyers, and real estate professionals benefit from the service provided by home service contracts. By including a home service contract as a condition of the sale, sellers instill an added sense of confidence to prospective home buyers because the buyer feels comfortable, knowing that covered systems and appliances will be repaired in the event of failure after closing. In addition, most home service contract companies offer seller’s coverage, which protects the seller in the event of a system or appliance failure during the listing and escrow period. Not only is the seller protected from additional cash outflow, if the home is under contract when a system or appliance fails, the service contract can help to keep the transaction flowing along smoothly.

Benefits to the buyer include budget protection from unexpected repair or replacement of home systems or appliances. This is especially important for properties that have sat on the market for long periods of time because, although a covered item may work at the close of escrow, one never knows when that system may fail. Even a change in household size can push a system or appliance to the breaking point sooner than expected. With many home buyers opting to take advantage of bargains that can be found with the glut of foreclosures currently on the market, home service contracts help take the risk out of the unknown. For first-time buyers with tight budgets, the unexpected replacement of a major system such as a furnace can be devastating; clearly the peace of mind a home service contract provides is valuable to financially strapped homebuyers.

A home service contract can bring peace of mind and referrals to the real estate agent. Real estate agents want to provide the best possible service experience to their clients because so much of their business growth is based on referrals. By offering a home service contract to their clients, the agent demonstrates their professionalism and concern for their client’s well being even after the sale. When the plan holder obtains the service they need from their home service contract provider, they will thank their agent for having the foresight to offer this valuable protection. Of course, when a client is satisfied with the agent’s service, they are much more likely to refer that agent to their friends and family who need real estate services.

Your own real estate agent is also knowledgeable about local markets, pricing, how to market your home effectively, and the many nuances of issues most are not such as PMI,  title insurance, fence line agreements and home inspections. “Personally, I think most anyone is just a sandwich short of a full picnic to avoid using a real estate agent when buying or selling a home,” says Art Chartrand, Executive Director and Counsel to the NHSCA. “A qualified and educated real estate agent doesn’t just show a house and point out shiny appliances.  They know insulation, roofing, taxes, school districts and crime, not to mention the value of granite, a good mortgage company and requirements of VA loans. Buying or selling a home without your own agent is pretty much like trying to fly a plane without taking a lesson.”

The NHSCA works diligently to promote excellence in the home service contract industry. By promoting education, fostering the improvement of business conditions, providing clear statutory definition and standards, and encouraging sound and ethical business practices; higher business standards, better business methods and cooperation within the industry continue to grow.

In our ongoing efforts to foster the relations and understanding between the home service contract industry and REALTORS®, we would like to hear from you. If you have a suggestion, area of concern or just would like more information regarding home service contracts, please contact us.

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  https://homeservicecontract.org or call 913-871-5600.

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