Category: Press Releases

Lack of use can cause costly repairs, not to mention denied  insurance claims.

(Lenexa, KS)   When home sits idle on the market, or vacant for most any reason, lack of proper maintenance or simply lack of use can cause costly repairs or replacements down the road. They may also result in lack of coverage under your insurance policy.

“When it comes to home appliances and whole house systems such as heating and cooling, wear and tear is not the only concern these days, just the lack of use can result in problems.   Cars, boats and motorcycles are no different,” advises Art Chartrand, Executive Director and Counsel to the National Home Service Contract Association. “These mechanical systems were meant to be used, not sit around. Even with a service contract and proper insurance, you still have to check on a vacant property, “  Chatrand advises. They just fail from non-use.  Valves freeze, gaskets dry out and gears rust form moisture.  P-traps in drains also dry out and can fill your house with methane sewer gasses.

 “Now, more than ever I am strongly encouraging my clients to require the seller provide a home service contract – especially if the home has been on the market for an extended amount of time,” advises Mitch Miller, REALTOR with Better Homes & Garden Real Estate.  “Contracts generally range from $350-$550 a year and can be renewed by the home buyer. It just makes good sense especially, as in the case of a foreclosure, there is no homeowner available to provide information. In addition, many companies provide seller coverage free of charge during the listing period, so it helps protect the seller as well.”

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).  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.

“Our goal as an industry is to provide the best value for the consumer, “  said Billy Jensen, Fidelity National Home Warranty. He added  “In 2016, our members paid out over one billion dollars in wholesale value of claims.”

Aside from the need for a home service contact, homeowners need to be careful with their insurance coverage as well. While most policies cover you for routine absence due to vacation and cover otherwise furnished and utilized vacation homes that are unoccupied for great lengths of time, they often do not cover “vacant” homes. A vacant home may be described as one without any furnishings or utilities active.

One novice in Kansas recently bought a house and left that very day for Texas leaving their son living across town in charge. The son did nothing and the house was vacant for the next ten days. Upon returning to town, a water leak in the kitchen was discovered that caused major damage.  This is an insurable peril and cannot be covered by a service contract by law. The insurance carrier balked claiming the house was vacant and unattended.  Homeowners then haplessly tried to blame everyone form the seller, to the their agent to the tooth fairy to no avail.  The fact is they had the keys and just left the house vacant and things happen.  So make sure you check with your insurance carrier if your home will be vacant and unattended for any length of time.

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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Complaints and Investigation of New York Company Elicit Response by National Home Service Contract Association

(OLATHE, KS – January 12, 2009)

OIn today’s economy it has never been more important for consumers to verify the credibility and dependability of any company in which they invest or purchase services. The National Home Service Contract Association strongly advises when purchasing a home service contract, consumers should do their homework, solicit references from seasoned real estate professionals and, most importantly, carefully read contracts before signing.

“Many consumers do their shopping for services via the Internet,” Billy Jensen, President of the NHSCA said. “While this method can be convenient and a time-saver, consumers must remember that anyone, including unscrupulous business people and scam artists, can host a well-designed and convincing Web-site. Consumers must do their research.” 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.

This caution comes in light of recent consumer complaints and ensuing investigation against National Home Protection which according to its Web-site, is a home service warranty company based out of New York City. Published reports contend that NHP was not properly licensed in the states in which it operated including Texas where the state’s attorney general has filed action against the company. NHP currently has an “unsatisfactory record” nationally with the Better Business Bureau.* NHP is not a member of the NHSCA which has published a Code of Ethics that requires its members to act in conformity with all applicable laws and regulations.

“We certainly do not like to see any home service provider cast in a bad light, or worse, not fulfilling their contractual obligations,” advises Billy Jensen, President of the NHSCA. “One of our missions is to fully inform and educate consumers as to what contracts do and can provide. Unfounded expectations only later lead to dissatisfaction which is not in anyone’s best interest.”

Home service contracts provide a variety of benefits to service, repair or replace specifically listed household systems and appliances for a set, annual fee, but do not cover everything. Additionally, they do not cover insurable losses from events such as fire, windstorm, vandalism or theft. “If a dishwasher breaks down, the dishwasher repair is covered, but if a water leak form the dishwasher destroyed your ceiling, under state law, the homeowner must look to their insurance company for that loss,” Jensen clarified. For more questions and answers on home service contracts visit the NHSCA website page www.homeservicecontract.org

* The Atlanta Journal-Constitution; 1/11/2009

Consumers to Benefit Say Industry Leaders

(OLATHE, KS – July 10, 2008)

Until recently any contractor licensed in the state of Arizona could sell a homeowner a home service contract that covered items such as dishwashers, garbage disposals, and heating and cooling systems. It doesn’t sound like a problem until you realize that many of these smaller contractors weren’t financially stable or qualified to provide the service they were marketing.

That has now changed. Adopted and signed into law on May 8th, 2008, House Bill 2224 has eliminated a major exemption in the Arizona Service Company Act, further protecting consumers. The Act licenses and regulates all companies within the state offering home service contracts. For an annual fee, these contracts provide service, repair or replacement of major built-in household appliances and home systems that become inoperable due to normal ear and tear. Contracts generally cover items such dishwashers, ovens, disposers, wiring and plumbing systems and major systems such as heating, ventilation and air conditioning (HVAC). The home service contract industry and Realtors™ often refer to these contracts as home warranties.

Unfortunately for consumers, when the Act was initially adopted, it provided an exemption for licensed contractors – plumbers, electricians, etc. This meant that these individuals could offer consumers contracts without being subject to regulation. “We believe that this legislation helps ensure consumers in the state of Arizona receive a quality product while maintaining integrity for our industry,” said Mark Lightfoot, president of the National Home Service Contract Association. “The NHSCA worked closely with the Arizona House, home service contractors, The Arizona Association of REALTORS® (AAR), former Insurance Commissioner David Childers, as well others, to enact this legislation,”

These previously exempt contractors will now have to comply with regulations required by the Act such as financial regulations, consumer disclosures and enforcement by the Insurance Director.

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. Visit online at www.homeservicecontract.org

When the market shift to sellers, buyers need to change their approach.

(Lenexa, KS)

When the sellers market turns hot, buyers need to be ready to pull the trigger.

We recently  interviewed Mitch Miller, an experienced REALTOR with Better Homes and Garden Real Estate. He indicates many home shoppers are often slow to fully comprehend when the market shifts. The laundry list of a demands for perks and accommodations that buyers get used to demanding can just can disappear overnight. 

He offers the following tips when a sellers market hits:

Don’t be too picky over painted walls and the front door. You can change all the painted colors and put your own mark on the home with a new front door fairly inexpensively.

If the house meets most of your needs, make a an offer. The perfect house will not come along and this one will go to another buyer tomorrow. 

Location, Location, Location. You can update the house or add on, but you cannot change the location. Never forget that.

Get pre-qualified for the loan you can afford. Nothing gets a sellers attention like a ready to go buyer.

Be flexible on closing date and possession. Sellers will prefer you as a buyer if you know their needs as well. Your agent can inform you.

The one thing you can still ask for is a home service contract. This is the one request you can make because it benefits and protects not only you, but the seller and their agent as well.

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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