NHSCA Takes Lead in Home Warranty Industry

Olathe, KS, July 14, 2021
In addition to electing new officers and appointing a new Executive, [See RELATED RELEASE ON NHSCA NEW LEADERSHIP] The National Home Service Contract Association (NHSCA) made several historic decisions at its national meeting in Boothbay Harbor, Maine last month which positively impact the future of the home warranty industry.

The NHSCA voted to restructure its general membership to include new and lesser-known companies, including start-ups. “The concept is to foster newer companies to run their business among the leaders in the industry and to mentor them. While we all are competitors, serving our customers comes first,” noted newly elected NHSCA President Andy Hand of First American Home Warranty of Santa Rosa, California.

A new class of industry stakeholders in hardware, software, appliances, supply chains and technology was formally adopted. “NHSCA Affiliate Members” were established and currently led by Randy Whitehead of National Service Alliance (NSA). “This is exciting for all of us. We are bringing together the best in this industry to propel it forward. Providers benefit along with the new affiliates, but the real winners are consumers,” boasted Whitehead. “Education and growth including a possible National Symposium on Home Warranty are a start. Homeowners need what we can deliver.”

Hand added “We are truly encouraged about our new NHSCA Affiliates. These companies are key stakeholders in our industry and bring more innovation and technology to enhance the total customer experience.”

Jacqui Crockett, re-elected NHSCA Vice President led a forward thinking and innovative planning session with the new NHSCA Affiliates the day after the Board acted. “The founding leaders of the NHSCA left us a great legacy on which to build a future that looks different than it did even just 10 years ago. Builders, Realtors, contractors and most importantly homeowners need us to disrupt the way we’ve always done things to better serve their needs in this constantly changing market. From consumer expectations around their service experience, to increasingly rigorous federal and state safety standards for home systems, to the highly tech-enabled appliances in today’s homes, business as usual will not suffice. It’s time to change and we believe this expanding and diverse NHSCA is the group to make that happen.”

Michael Werner, Founder and CEO of HomeX (www.HomeX.com) and one of the new NHSCA Affiliates said “Werner Ladder, my family’s business, put ladders in most homes across America.  Home warranties are equally important, and every home should also have one, given the complexities and challenges of maintaining today’s home systems and appliances.

The NHSCA also adopted updated standards for data collection to better track industry trends and growth. Gwen Gallagher, President of Old Republic Home Protection has been a leader among leaders in the industry for decades. “Just being a big name on television does not prove your value to consumers. The responsible members of our industry are doing the hard work to protect consumers and advance the home warranty industry. Good data collection and NHSCA Accreditation are important in this effort. We are asking consumers, REALTORS and regulators to embrace us in this process.”

About the NHSCA

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 and consumer information, visit http://homeservicecontract.org.

For more information contact Joy L Moore, NHSCA Operations Manager Email: [email protected] or call 913-871-5600.

NHSCA Announces New Leadership

Olathe, KS, July 1, 2021

The National Home Service Contract Association (NHSCA) made several historic and pivotal decisions which will positively impact the future of the home warranty industry at its national meeting in Boothbay Harbor, Maine. (SEE RELATED RELEASE: “NHSCA Assumes Top Role in Home Warranty Industry.”]

Andy Hand of First American Home Warranty of Santa Rosa, California was elected President; Jacqui Crockett of 2-10 Home Buyers Warranty of Aurora, Colorado elected Vice-President; and Jim Mullery of Old Republic Home Protection of San Ramon, California was elected Secretary/Treasurer.

The meeting resulted in the hiring Pierce Haley of the national firm of Serlin Haley as the NHSCA Executive Vice President and General Counsel as a transition from Art Chartrand, Chartrand Legal Management, Inc.  (CLM, Inc) who formed and led the organization since its inception. “It’s been very rewarding to work with so many fine people in the NHSCA. The home services industry is on the right trajectory. Consumers need the services the members deliver,” said Chartrand. Chartrand will remain Of Counsel to the NHSCA for two years while he focuses on his family’s charitable foundation and the building of the “The Giving Gallery” to serve the Kansas City area. Joy Moore of CLM will remain to handle the management transition to Serlin Haley over the next two years to ensure a smooth transfer.

Hand and Crockett both outlined a promising future for the NHSCA that includes accreditation and high standards for member companies. “Chartrand will be missed, but we have bright and new talent ready to lead.  Companies that choose to operate outside state regulation need to be helped and work with the NHSCA toward a better experience” observed Hand.  “Customer centric innovation, technology, and service are the roadway of the future. We invite home warranty companies of all types join us in this journey,” added Crockett.

Be sure to look for the NHSCA logo when choosing a home service contract (warranty) provider.  See www.homeservicecontract.org for a list of member companies.

About the NHSCA

The National Home Service Contract Association (NHSCA) is a non-profit 50(c) (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States.  For more great industry and consumer information, visit http://homeservicecontract.org.

 

For more information contact Joy L Moore, NHSCA Operations Manager Email: [email protected] or call 913-871-5600.

NHSCA Announces National Meeting and New Officers

Lenexa, KS, Feb. 10, 2021

Christopher Wasson, NHSCA President departed his position with Old Republic Home Protection in late 2020 resulting in a transition of top NHSCA leadership.  A new slate of officers was unanimously voted in. Rodney Martin, Chief Executive Officer of America’s Preferred Home Warranty of Jackson, Michigan moved up to President and Jacqui Crocket VP of Business, Digital Transformation at 2-10 Home Buyers Warranty of Denver, Colorado assumed the Vice President slot. Any Hand, SVP Marketing and Strategy with First American Home Protection of San Ramon was elected Secretary/Treasurer.

Wasson’s departure was unexpected, however, “We are prepared for this with our officers serving two-year terms. We always have new officers ready and up to speed to take over,” said Art Chartrand the association Executive VP and General Counsel. “We fully expect Wasson to reappear in the home warranty provider ranks and possibly serve again in the near future.”

 

The NHSCA also took a bold move and determined to hold its 2021 annual board meeting in-person this summer. As was universally the case, the 2020 June meeting was relegated to a Zoom meeting. “We realize some government restrictions could yet alter our plans, but after polling the members, we found most ready, willing and able to attend” reported Joy Moore, NHSCA Operations Manager. Moore added that the meeting locale played a role noting that Boothbay Harbor Maine is a spacious and safe environment, and the hotel is well prepared as the country moves into a post Covid world.

 

In Boothbay, NHSCA will be dealing with its recent growth of membership and planning for a National Symposium on Home Warranty. “A new membership structure is being contemplated with a smaller and more efficient board size. We are trying to manage our growth while building a larger tent for all stakeholders in the home service contract industry to participate. An affiliate membership for our industry partners, many of whom currently serve on our Advisory Council, is on the table,” reported Martin as the NHSCA President. “As we move into a new normal of operations, we have been discussing and planning for the future for our industry to better serve the consuming public. It’s all a good thing,” added Martin.

 

Be sure to look for the NHSCA logo when choosing a home service contract (warranty) provider.  See www.homeservicecontract.org for a list of member companies.

 

About the NHSCA

The National Home Service Contract Association (NHSCA) is a non-profit 50(c) (6) industry trade organization of member companies serving home service contract providers and consumer interests throughout the United States.  For more great industry and consumer information, visit https://homeservicecontract.org.

 

For more information contact Joy L Moore, NHSCA Operations Manager Email: [email protected] or call 913-871-5600.

New Officers Elected at NHSCA National Meeting

Lenexa, KS, June 11, 2020 – John Walsh, General Counsel with Cinch Home Services of Boca Raton, Florida has been named President of the National Home Service Contract Association (NHSCA). Christopher Wasson, Vice President and General Counsel with Old Republic Home Protection of San Ramon, California was named Vice President of the NHSCA and Rodney Martin, Chief Executive Officer of America’s Preferred Home Warranty of Jackson, Michigan was elected Secretary/Treasurer of Association.

The Association meeting also welcomed HomeServe USA of Norwalk, CT and AFC Home Club of Marietta, GA to its ranks of the premier and trusted home service contract providers. “The addition of two new providers just keeps us on course to remain the group that consumers and regulators look to in order to manage the growth of the home services space,” noted Art Chartrand, NHSCA Exec Director and Chief Counsel.

As president, Walsh will continue to work towards the goals of the association to provide protection for the industry and its customers. “I am proud to take on this role. In a Covid-19 world and perhaps especially in a post Covid market we expect to meet numerous new challenges in providing the home services consumers so greatly need. We expect to meet and exceed those consumer expectations,” said Walsh.

Christopher Wasson is a well-respected attorney and business leader having worked in the industry with multiple large national providers. “Mr. Wasson represents the next generation of leaders and brings a fresh, forward thinking perspective to the table. He has a keen legal mind and a pragmatic approach to dealing with challenges in our industry,” added Chartrand.

Rodney Martin is a hands-on leader and an innovative thinker. Martin spearheaded the groups adoption of its accreditation program for home warranty providers and was a key architect of the associations new Advisory Council which also received approval at the June meeting. “As the leaders in home services, we have to be looking to the future and innovating. We have to move at the pace consumers wants us and that pace is based upon

consumer needs and on emerging technologies. We expect our new Advisory Council will serve up new ideas and programs to get us there.”

The group met via a ZOOM conference call through tis Lenexa based national headquarters. They plan to return to in person meetings next year in Boothbay Harbor, Maine June 16-19, 2021.

NHSCA Advisory Council Approved by National Leaders in Home Services

Lenexa, KS, June 16, 2020 – At its national meeting on June 11, The National Home Service Contract Association (NHSCA) announced the formation of a home services resource group to be known as the NHSCA Advisory Council. The purpose of the council is to identify and study important issues facing the service contract industry and making recommendations and improvements for the consumers our members serve.

The Council will include existing NHSCA members and as well as external business leaders nationwide. The inaugural chair of the Council is Randy Whitehead, President of National Service Alliance of Salt Lake City. “The Advisory Council is just our next step after provider accreditation to take us to the next level” noted John Walsh, General Counsel with Cinch Home Services of Boca Raton, Florida and the NHSCA’s newly elected President.

The home services space is expanding and becoming more critical to consumers both in real estate transactions and increasingly, with existing homes. Whole home service contracts, (traditionally called ‘home warranty’) are standard in real estate transactions and still account for about 2/3rds of all contracts sold nationally. ” However Art Chartrand, NHSCA Exec Director and Chief Counsel reported that “ The direct market to consumers of customized service plans covering appliances and systems of their choosing and on consumer’s own terms are the emerging growth sector. We need to manage that growth through proven and quality providers who work with us and regulators to best serve the consuming public. The NHSCA Advisory Council is a resource to get us there quickly and more efficiently by engaging all stakeholders in the home services space.”

Whitehead added, “We are excited to more formally work with home warranty providers to serve our mutual clients.” We expect the council to grow in size and input as others in the home services space realize we are at the hub of innovation and communication. We believe state legislators, regulators, other stakeholders in home services and consumers themselves expected us to

take this step. We are up to the challenge.”

An annual industry-wide national symposium on home services and home warranty is under development to bring the industry together and generate excitement for collaboration on important issues. The Advisory Council is charged with helping to bring that symposium to fruition. Whitehead reported the group plans regular video conferences beginning this month to start executing its mission. “We are beyond simply ideas,” touted Whitehead, ‘this is a group of proven companies that get things done.”

NHSCA Announces Accreditation Program for Home Service Contract Providers

Sept, 2019 – Lorna Mello, President of the NHSCA announced this month “The NHSCA is taking a major leap forward with its accreditation program.  Regulators and Legislators have asked the NHSCA to develop a formal program of compliance and standards within the home warranty industry, and we responded.”  On September 5, the NHSCA Board of Directors adopted the program for implementation immediately.

“The new NHSCA accreditation essentially becomes the “good housekeeping” seal of approval for serious and responsible home warranty providers” reports Richard Adams, NHSCA Vice-President and principal of National Home Guaranteed of Utah. Adams added “My company has already been through the process and among the first to be accredited. I am proud of that.”

Art Chartrand, Executive Director and Counsel for the NHSCA reports the program is designed to benefit not only providers, but also to assure the consuming public and regulators as well.  “The home service contract industry is regulated in every state by various agencies, but they cannot do all the review and monitoring. They have to rely upon the legitimate industry to help police itself.”   Chartrand says the program is a positive thing and even the best of companies will benefit from a top to bottom review of laws, regulations, contracts and compliance.

“The award of the NHSCA accreditation logo demonstrates to consumers and the industry our membership’s commitment to proper regulation and compliance” says John Walsh, General Counsel for NHSCA member Cross Country Home Services, Inc. based in Florida.  Walsh, also the NHSCA Treasurer/Secretary added “NHSCA membership is what REALTORs look for when recommending a home warranty provider. This program is just another step forward to assure regulators and consumers we take our responsibility seriously to meet their expectations.”

Current NHSCA member companies have until May 1, 2020 to complete the audit and receive accreditation. The first phase of accreditation is voluntary and good for five years. For new applicants to the NHSCA,  the audit and accreditation will become mandatory including an on-site stand down review of operations.

About the NHSCA

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 and consumer information, visit https://homeservicecontract.org.

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Home Care Made EZPZ

Homes need constant care and home service contract makes budgeting “EZPZ.” by: Arthur J. Chartrand*

Buying a home can be a challenging process but selecting a home service contract shouldn’t be. Thankfully the National Home Service Contract Association (NHSCA) has made the process easy. As a matter of fact, they have made it “EZPZ” for you. (Easy Peasy, if you are not into the acronym thing.)

Homebuyers need only look for the NHSCA logo which is granted to member companies that agree to adhere to sound and ethical business practices. No company can buy an NHSCA logo¾they have to earn it. Companies are vetted by peer review which means that even their toughest competitors have to approve of them. Onsite office audits and visits to member offices by NHSCA counsel are common. Adhering to a code of ethics, compliance with all state laws and regulations and fair advertising practices are just a few of the requirements.

We tend to trust when an electrical appliance is “UL certified” or a household product gets the “Good Housekeeping Seal of Approval.” The NHSCA is the seal of approval for the home service contract industry (often referred to in real estate circles as a “home warranty”).

Media often cover stories about consumers being ripped off by an unscrupulous financial adviser, home contractor or auto mechanic.  Is everyone in these professions bad?  Clearly not. The consumer simply lacks a knowledgeable reference or takes the wrong approach. Asking for input from a trusted neighbor or a real estate agent is also a good idea. Caution should be utilized when using online sources where marketing and advertising dollars can impact ratings.

The same goes for Google searches. Trusting a company just because they pop up as the number one ad sponsor does not mean they are the best choice.  Unfortunately, some companies spend millions of dollars on meta data and search engine optimization rather than focusing on good service.  If you research Google to a greater degree you will note government sanctions against home warranty companies with names like “select,” “secure” or “choice” in them.  Educate yourself and read the full story.

The NHSCA represents the highest standard in home service contract protection and works to promote the same throughout the industry. There are a few very good companies who are not yet members of the NHSCA. Accordingly, the NHSCA is constantly reviewing companies and targeting the finest, legitimate and responsible companies for membership.

The NHSCA takes fraud seriously. It continually monitors the industry and works cooperatively with government officials as well as consumers in a robust effort to combat fraud.  To see its most recent effort simply visit www.homeservicecontract.org  Marginal providers just won’t come near the NHSCA.

NHSCA members serve nearly five million households and pay out nearly two billion dollars in service claims every year. If a consumer ever has an issue with a service by an NHSCA member, the NHSCA website provides an avenue of communication direct to the top of its member companies.

So look for the NHSCA logo when picking a home warranty company. Or just think  “EZPZ.” In fact, if you forget NHSCA or www.homeservicecontract.org, just remember “EZPZ.” Go to EZPZhome.organd you will find the most qualified and reliable providers in the industry. If that isn’t easy enough, visit EZPZhome.org.  How EZ is that?

The NHSCA is an IRS registered 501 (c)(6) trade group of highly selected and premier providers of home service (warranty) contracts. The NHSCA is based in the heart of Americaat 10000 Marshal Drive, Lenexa, KS 66215 with members serving consumers throughout the United States.

For more information or an interview, contact:
Joy L Moore, Chief of Staff NHSCA
10000 Marshal Drive
Lenexa, KS 66215
Ph: 913.871.5600 FAX: Use Email
[email protected]

* Arthur J. Chartrand is an attorney, consumer rights advocate, former national radio talk show host and counsel to the National Home Service Contract Association

Email him at: [email protected]

 

 

 

 

 

 

Personal v Real Property: A Modern Perspective

When it comes to home systems and appliances, it’s not personal.

We all hear that arcane and rather silly message as we depart an airplane. “Please look around for all your personal belongings and take them with you.”  I always wondered, “Are there impersonal belongings?  Are there “public belongings?”  Is belongings even a word? (It is.) What if you have something in your possession but it does not “belong” to you? Is it still a belonging? What makes it “personal?”
Continue reading “Personal v Real Property: A Modern Perspective”

Sales of Home Warranties Soar as Industry Covers Billions of Dollars in Appliances & Systems

The National Home Service Contract Association also reports an increase in consumer knowledge, value & popularity of home service contracts

Lenexa, Kan. –  Sept., 2016  The National Home Service Contract Association (NHSCA), a non-profit 501(c) (6) industry trade organization comprised of member companies representing home service contract providers and consumer interests throughout the United States, announces today that its members sold more than 4 million home service contracts (often referred to as home warranties) in 2015, an 8-percent growth from 2014.

“The NHSCA is an advocate for the home service contract industry and works diligently to further educate consumers about the value that home service contracts deliver,” said Mike Bartosch, president of the NHSCA. “The wholesale value of these contracts easily exceeds $1 billion in savings to consumers annually.”

The home service contract industry provides service, repair or replacement of major household systems and appliances that fail due to normal wear and use. Contracts generally cover items such as dishwashers, ovens, cooktops, garbage disposals, microwave ovens and water heaters; electrical, plumbing and heating systems; as well as ventilation and air conditioning systems (HVAC).

“If a system or appliance stops working, contact your home service contract provider. If a home system or appliance is damaged by a falling tree, catches fire or is subject to vandalism, then contact your insurance agent,” said Bartosch. “Home service contracts and homeowners’ insurance policies are mutually exclusive products in all 50 states. NHSCA members are not insurers and do not sell an insurance product. Further, insurance products don’t cover service, repairs or replacement to home systems and appliances required as a result of normal wear and use.”

The majority of home service contracts are offered through real estate professionals to the sellers and buyers of homes during the resale process. However, direct sales to consumers now account for approximately one-third of all home service contract sales. As with the sale of any warranty contract, buyers should read and understand the coverage afforded, as well as the limitations to coverage. Buyers should not rely solely on others to explain the coverage, as coverage may be inaccurately represented, which can cause frustration later.

While national figures continue to grow, home service contract market penetration differs from state to state. Various sources cite that in California, where the industry began in 1971, more than 90 percent of all home sales include a home service contract.

“Clearly these most recent figures show that consumers trust our members to take care of appliances and systems in their homes,” said Arthur J. Chartrand, chief executive and counsel of the NHSCA. “The members of the NHSCA represent a collective commitment to education, service quality and coverage. These sales figures posted by our member companies prove that our educational efforts are working and consumers are listening. As a result, the industry is positioned for an even stronger finish in 2016.”

Formed in 2004, the NHSCA exists to conduct research and promote education, publications and other methods that improve consumers’ understanding of home service contracts. Its mission is also to distinguish the home service contract industry from insurance, retail warranty and extended warranty and the automobile dealer service business. It also informs members of changes in laws and practices as well as pending legislation that affects the home service contract market nationwide as well as sponsors meetings and educational programs.

In addition to the protecting consumers on the wear and use of a home’s core appliances and systems, many home service contract providers also offer optional items such as swimming pool or spa equipment and other free-standing appliances such as kitchen refrigerators or washers and dryers for an additional fee. Contract terms may be annual and renewable, but many are now offered on monthly terms.

“All parties in a real estate transaction benefit from a home service contract,” said Bartosch. “For real estate agents, the benefits of home service contracts include risk management after the close of the sale, the ability to focus on repeat or referral business, hassle-free home repairs for clients and increased customer satisfaction as both buyers and sellers view home service contracts as a benefit and value the protection they offer.”

Although the term “home warranty” has been used historically throughout the industry, the more correct term is “home service contract.” Home warranty is a descriptive term coined because the home service contract industry evolved by providing contracts purchased by home sellers for home buyers as a form of “warranty” to protect the new buyer should a mechanical problem develop during the first year of ownership.

“Working to improve the overall consumer interface and experience with our providers and local contractors has been a top priority of the NHSCA,” said Chartrand. “Home warranty is a generic term and should not be confused with a new home’s ‘builder warranty’ or ‘extended warranties’ for new consumer goods.”

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. Members of the NHSCA are reputable, licensed home service contract providers in good standing, domiciled in various states across the nation. All members agree to adhere to a code of ethics, which promotes sound and ethical business practices. A current list of member firms are listed on the NHSCA website. For more information, please visit www.homeservicecontract.org or follow the NHSCA on Twitter @coveryourhome.

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NHSCA Interprets Washington State Tax Advisory

Appears official that longstanding law of no sales tax upon initial sale of home service contracts is affirmed.

The Washington State Department of Revenue published an Excise Tax Advisory (ETA) on January 12, 2016, ETA 3198.2016 regarding the sales taxation of home service contracts.

This ETA has been in discussion for years with the home service contract industry. The Washington Department of Revenue (DOR) has desired to alter the tax law after decades of audit clearance letters by the DOR approving of no sales tax upfront on the sale of home service contracts. Sales tax has always been collected when local Washington contractors later perform work. Only a handful of states tax the sale of home service contracts at the time of contract sale, and only pursuant to clear and specific statutory authority.

The ETA appears to rely in great part on a wholly unrelated statutory amendment in 2005 that taxed the sale of new product “extended warranties” sold at retail under RCW 82.04.050. Home service contracts do not cover new product, retail sales in any way shape or form. The reliance on the taxation of new products sold at retail, makes the entire basis for the ETA suspect.

Also casting a cloud, is that the DOR has continually assessed a B&O tax on all home service contract sellers at the rate of 1.5%. If home service contract sales were indeed retail sales, subject to RCW 82.04.050, the tax rate should have been the applicable 0.471%. If upheld, may years of refunds would need to be calculated.

Due to these issues, the DOR and the NHSCA cooperated to sponsor HB 1997 in March, 2013 to change the taxation of home service contracts to be more like that of retail goods. The legislature rejected that approach after a full hearing on the issues. This ETA appears to be an overt attempt to circumvent the Legislature.

However, this advisory strains to explain that typical home service contracts that only cover real estate and fixtures (broadly defined as virtually all appliances and household systems) are not sales taxable. So one fair reading is this ETA perhaps continues the decades old interpretation by the DOR and legislature that home service contracts are not taxed at time of sale, but only on work later performed later by a local contractor.

Due to the ETA not being reviewed with industry prior to publication, it contains some odd factual errors including a statement that a warranty can only cover personal property and erroneous legislative definitional references to “warranty” that any real impact of the non binding advisory is difficult to assess. An included discussion of “mixed service contracts” has few definitions and suggests a deminmis or “no tax” tax rule on covered tangible personal property, so it may also suggest no change in policy.

One can only fairly conclude as the Washington Legislature has, that home service contracts are not taxable at time of sale, just as the DOR has ruled for decades. Only the legislature can change the law. The NHSCA remains ready and willing to accept a future change set by the Washington legislature.

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 and consumer information, including short helpful videos, visit  https://homeservicecontract.org or call 913871-5600.

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