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CONSIDER AGE OF APPLIANCES AND SYSTEMS WHEN PURCHASING A HOME

  Cost of service and repair can be costly according to the National Home Service Contract Association. A home service contract is a good option. (Lenexa, KS) — There are many items to consider when purchasing an existing home. Many buyers, especially those in the market for their first home, look at the sale price to determine if they can afford to buy. The National Home Service Contract Association, the industry trade organization serving home service contract providers and consumer interests, strong suggests that consumers factor in the cost of maintenance, repair and replacement of major appliances and homes systems when budgeting for a home.  Knowing the “life expectancy” of those systems is key. Take for example an air conditioning system. Most AC systems have a life expectancy of 10-15 years. If you are considering the purchase of a home that is over 15 years old, with the original system, you could be living on borrowed time. Three years or three months? Who knows? It’s a guessing game, but the only thing that is often certain is that when it does go, it will be at the most inopportune time. Considering that the average cost to replace and install an average air conditioning system is $4,500 – $6,500, doing a little upfront research is a pretty good idea. You can protect yourself from many of these budget busters by purchasing a home service contract form a member of the NHSCA. The following is a list of averages for many of the appliances and electronic systems in your home based on the most recent research from The National Association of Home Builders: gas ranges – 15 years dryers and refrigerators – 13 years washers – 10 years compactors – 6 years dishwashers – 9 years microwave ovens – 9 years HVAC – 15-20 years furnaces – 15-20 years tankless water heaters – 20 years electric or gas water heater  – 10 years heat pumps -16 years air conditioning – 10 to 15years garage doors – 10 to 15 years Home service contracts provide service, repair or even replacement on a home’s major systems and appliances. At an average range of $350 – $550 for a year, these contracts typically cover items such as heating systems, interior plumbing, electrical systems, water heaters, dishwashers, and garbage disposals. Other items such as pools, spas and septic tanks may be added at an additional fee. As always, we suggest you consult with your real estate agent for guidance. 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 or call 913-871-5600. #03    

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Tips on Winterizing Your Home

  Take a few minutes to read and make sure you have properly winterized your home. The NHSCA contributed to a terrific article on SheKnows.com  Read the entire (original and unedited) SheKnows.com by Rolla Bahsous online here. How to get your home ready for the cold season If you’ve already pulled out your winter coat and put snow tires on your car, there’s still one thing you’re missing before the cold weather hits. Most people completely overlook the few simple steps needed to winterize a house. It’s important to remember that while home service contracts generally provide service, repair or replacement for the major built-in appliances and systems in your home – such as dishwashers, electrical and plumbing systems, heating ventilation and air conditioning systems  – regular maintenance is still very important. Self-check your heater and HVAC Turn the heat on and be sure that all the rooms in your home are getting enough heat through the vents. Check and change your HVAC (furnace) air  filters.  “Many of us think of changing our furnace filters just once or twice a year, yet experts say we should replace them every month during the heating season,” says Andrea Woroch, a consumer and money-saving expert. Schedule a professional furnace maintenance visit. A furnace tune-up not only includes cleaning that keeps your furnace running efficiently, but it also catches small problems before they turn into big problems that can not only cause inconvenience and discomfort. An annual maintenance contract from a local, trusted HVAC company is also a great idea. They will not repair or replace broken units like a home service contract, but they go a long way to keeping your home running happy and healthy. Check batteries and update your fire and CO detectors. Check and replace all batteries as needed. Don’t forget a good quality carbon monoxide detector in your bedroom and near your gas heater and/or gas water heater.  Even a small problem can lead to gas leaking into your home or dangerous carbon monoxide levels. Carbon monoxide (CO) is a deadly, colorless, odorless, poisonous gas. According to the Consumer Product Safety Commission, on average, about 170 people in the United States die every year from CO produced by non-automotive consumer products. Be mindful, many  detectors typically need to be replaced every five to seven years.  Get the fireplace ready If you have a fireplace, be sure it’s ready by ensuring the chimney is clean. If you have burned a few cords of wood, having a professional chimney sweep is mandatory. If you don’t have a fireplace but wish to have the cozy ambience, check out some faux fireplace units at your local décor store. Some of these fireplaces are designed to emit heat in addition to the “fire” display. Check your gutters Letting leaves pile up in the gutter can cause big problems any time of year, and in cold weather especially. The NHSCA says, “During winter months, leaves can potentially cause melting ice and snow to backup into your attic, and even your basement. Be sure to pay particular attention to gutters that have branches directly over them. Not all trees shed their leaves at the same time so you may need to check the gutters in both the fall and early winter.” Check your windows To keep warmth inside your home, inspect all windows and make sure there aren’t any cracks where heat may escape. It might be wise to cover all your windows facing North with a plastic sheet. You can find these at your local hardware store and the cost far outweighs the heating saving you’ll gain by covering your windows. Pella Corporation, the leading manufacturer and designer of windows, doors, blinds and shades for homes and commercial buildings, also recommends clearing windowsills of dirt and debris since pre-winter window cleaning is one task most homeowners overlook: “Debris like sand, dirt or leaves can get caught in windowsills and moving parts of windows or doors. Clean these areas with a dry paintbrush to create a tighter seal and enhance window and door performance.” Check the outside of your house If you haven’t eyeballed your home’s exterior in a few months or more, now’s the perfect time to reassess at the start of a new season. Before that first snowfall, Pella Corporation recommends repairing or replacing damaged exterior surfaces that could expose your home’s interior to the outside elements. Pella Corporation advises, “Cracked or deteriorated wood on the roof or near the foundation is typically associated with water penetration and may allow moisture or cold air to leak into your home. Look closely for signs of moisture leakage and replace damaged wood. Consult a professional to help correct any roof or drainage problems around your home.” Remove leaves around your outside HVAC unit. The HVAC unit is likely your home’s largest operating system. The compressor part of your air conditioner is located on the exterior of your home and can become inefficient with debris and leaves blocking it. You can even use a wet dry vacuum or your hands to remove the debris from the bottom for manual cleaning. Wear gloves if using your hands for manual cleaning and turn off your main breaker first – just to be safe. Turn off exterior faucets This may seem like a no-brainer, but it’s also one of the easiest home winterizing tips to overlook — because it’s so simple. According to the NHSCA, “Un-drained water in pipes can freeze, which will cause pipes to burst as the ice expands.” The NHSCA recommends, “Start by disconnecting all garden hoses and draining the water that remains in faucets. If you don’t have frost-proof faucets (homes more than 10 to 15 years old typically do not), turn off the shut-off valve inside your home. Install a programmable thermostat To keep home temperatures regulated and energy costs to a minimum, we recommend installing a programmable thermostat to lower temperatures when the house is empty and warm it up again in the morning. We

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Even in a Seller’s Market, the Value of a Home Service Contract Remains Strong

  Lenexa, KS – When sales in the residential real estate market grow, often resulting in a shift towards a sellers’ market in many areas, no one should forget the basic economics of selling or owning a home. The National Home Service Contract Association reminds home buyers that the true cost of home ownership extends well beyond the sale price. A home service contract provides needed peace of mind and budget protection at a time when they need it most, during the first year of home ownership. They also protect the seller and the seller’s agent from an unhappy and frustrated buyer who encounters a significant repair right after closing. 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), which may become inoperable due to normal wear and use. Coverage does not include preexisting conditions. At an average cost of $400 – $550 a year and service calls ranging from $50-$100, a home service contract can easily pay for itself with just one use, and is one reason they are highly recommended by real estate brokers for both the seller and buyer of a home. There are many ‘unexpected’ expenses that add to the cost of home ownership – especially during the first year according to national data and the NHSCA.  Jeff Powell, President of First American Home Protections says “We all love those ‘do it yourself’ television shows but the reality is that there are many home repair or replacement projects that occur in that first year which can, and should, only be done by a skilled professional. The true cost of owning a home includes items such as maintenance and repair. The average cost for those items in the first year of home ownership is roughly 1% to 2% of the purchase price. That can really cause a burden to homeowners who have just made what is likely the biggest purchase of their life. That is where a home service contract can really protect a homeowner’s bank account and provide peace of mind.” The national median existing single-family home price for the first quarter of 2016 was $234,000. That translates to potential maintenance and repair bills ranging from $2340 to $4680 and higher. That figure is for maintenance and repair alone, and doesn’t even include items such as a major system replacement, insurance, property taxes, utilities, lawn care, pest control, or the purchase of new items such as furniture.  “Even in a sellers’ market, home sellers still can set their home apart from the rest by providing such coverage,” Powell said. “And home buyers still need and want to safeguard their budget. Why leave anything to chance when it’s a win-win for all parties involved?” 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. #04a

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Popular Mechanics – How to Get the Most From Your Home Warranty

While written in April 2013, this advice from PM is pretty much timeless. Suppose someone is considering buying a home…READ MORE 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. #13  

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Tips on Spring Home Prep

Just like winterizing, NHSCA says adding home appliances to cleaning list in spring just as important. Lenexa, KS – The experts with the National Home Service Contract Association advise that cleaning and inspecting major appliances should be at the top of every homeowner’s spring cleaning checklist. “Organizing closets and cleaning windows certainly are typical spring cleaning tasks but smart homeowners who really want to keep repair bills down and efficiency up, add the major appliances in their homes to their spring cleaning ritual,” says Jeff Powell, President of First American Home Protection. The experts at the NHSCA suggest a few important spring-cleaning tasks: Air Conditioning Check your air filters. Replacing every 30 – 60 days is highly recommended. Keep the outdoor compressor unit free of debris. Trim shrubs and plants to ensure proper air flow and circulation. Spraying off the outdoor coil is a great idea but make sure all electricity and breakers turned off first. Better idea? Schedule a professional HVAC expert to do a maintenance visit. Washing Machine Whites looking a little dingy? It may not be your detergent, but the machine itself. Inspect cold and hot water supply hoses for cracks and deterioration. Look for signs of water or oil leakage. Check to make sure the machine is level, and adjust it if needed, by turning the legs clockwise to lower them or counter-clockwise to raise them. Your washer over 12 years old? Time to upgrade. Dryer For gas and electric dryers, check and tighten supply connections. Be sure to clean the lint trap after every load. According to the United States Fire Administration, every year clothes dryer fires account for over $100 million in losses. Check to see if the dryer is level; if it’s not, the drum may vibrate and damage the unit. To adjust the level, turn the legs clockwise to lower them or counter-clockwise to raise them. Clean the vent pipe to outdoor or replace. These vents really clog up after a few years and not only can start fires, they kill the efficiency of your dryer. Is the dryer over 12 years old? Time to go shopping Water Heater The last thing anyone wants to do is step into an ice-cold shower. Drain and flush sediment from tank to prevent rust or failure. Check pressure-relief valve once a year to make sure this crucial safety device is not clogged. To prevent accidental scalding and burns in homes with young children, be sure that your heater is set below 120° F. Make sure no flammables (or anything)  stored or stacked near or that could fall around heater. 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 and consumer information, visit  https://homeservicecontract.org or call 913-871-5600. #10b  

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CONSUMERS URGED TO RESEARCH SERVICE PROVIDERS AND REPORT SUSPECTED FRAUD

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. #15

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COLD TEMPS NOT OPTIMAL FOR HVAC TESTING

  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. #10c              

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HOMEOWNERS ENCOURAGED TO OPTIMIZE BENEFITS OF HOME SERVICE CONTRACTS

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. #25    

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HomeWarrantyWiz.com Interviews Jeff Powell, President of NHSCA

August 7, 2012 Back in April HomeWarrantyWiz.com published an interview with Counsel for the National Home Service Contract Association (NHSCA), Art Chartrand. In today’s piece we meet the President of that same association. On behalf of First American Home Buyers Protection Jeff Powell is the current President of the NHSCA and I recently talked with him about his duties, the association, and its work. Thanks to Jeff for his time and for sharing more information about the association with readers who visit this website. What are your duties as President? My company, as a member of the NHSCA, actually holds the position and I represent them as the appointed person to fulfill the responsibilities given to the sitting NHSCA President. My role is mainly to facilitate, escalate, and prioritize the relevant issues the industry is facing among the association members. All of the member companies are represented by leaders who are highly experienced and engaged professionals in our industry. So the role of the President may imply a greater authority than the other members, but someone must be the one to press everyone to make decisions on issues and move on to new business. How long do you hold this position? When is the next President appointed and how? It’s a two year term. The most recent appointment was made at our annual meeting in Chicago this spring. The next President will be decided by nomination and vote by the members, with the likely successor being the current Vice President. As President do you have a particular role in deciding or vetting new member applications from home service contract companies? A new member committee decides on applications. That committee seeks to recruit new member companies and also handles the vetting process with new member applications. This process involves all the member companies giving feedback on a company that applies for membership in the association This vetting helps to demonstrate to homeowners which companies are operating legitimately and have the reputation that would best represent the industry’s best practices. The member companies of the NHSCA include some big company names, your own company included of course. Is there any threshold in terms of customers served, contractor networks, or other company-size-criteria that would limit membership in the NHSCA? No, there are no specific criteria but the majority of the major players in this industry are already members of the association. Smaller companies benefit though by being members and are welcomed if they meet the standards set by the group members. The experience and resources that the collective companies bring to the association are a great help to the companies that become members. This type of investment of financial and human resources, in the end, benefits the entire industry and that is the goal of the NHSCA. Some service contracts these days are very specific in terms of what items in or around a residential property are covered. Are there limitations on what sorts of companies can become members of the NHSCA where specific service contracts are concerned, public utility water or sewer line service contracts for example? The association would consider on a case by case basis any company that applies for membership. The ultimate decision relies mostly on whether the contract the company provides fits the definition of a home service contract. If the answer is yes then the company would be considered for membership. In a press release this summer there was mention of a numeric coding system for the NHSCA’s member companies. This system seems like a great resource for home owners trying to verify that a home service contract company isn’t a look alike or sound-alike-company-name. Where exactly do your member companies display their NHSCA member number? The member companies will each decide their own way of displaying the membership information, member number, NHSCA logo, etc. The association is more focused on cooperation than dictating to members how to represent their membership but most members will likely make their NHSCA member information available in their online and offline consumer-facing literature. There was an article published online back in May in which you commented on the situation with shortages of the old coolants commonly referred to as R-22. For readers who are not familiar with the challenges that HVAC technicians have today getting sufficient amounts of R-22 refrigerants, can you please shed some light on how the changes with the Environmental Protection Agency’s regulations affect home owners whose cooling systems use those older refrigerants? How does having a home service contract pay off if a home owner needs repairs to the cooling system that require recharging with R-22 refrigerants? The price of R-22 has increased significantly which has led to increased costs to repair air conditioners. A home service contract helps protect homeowners from these additional costs.

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VALUE OF HOME SERVICE CONTRACTS ON THE RISE IN CALIFORNIA

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                                    

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EPA HEAT ON HOMEOWNERS AND HOMEBUYERS IN 2020

National Home Service Contract Association offers advice to homeowners and homebuyers on air conditioner mandates by EPA. (Lenexa, KS). In 2010, the Environmental Protection Agency placed into effect a ban on the manufacture of new HVAC systems using R-22 refrigerant. R-22 refrigerant, more commonly known as Freon®, is used in systems such as window air-conditioning units, dehumidifiers, heat pumps and central air conditioners. The purpose is to reduce the amount of hydro chlorofluorocarbons (HCFCs) emitted into the environment.  The EPA then added a gradual  production limits for R-22 refrigerant gas each year down to a total ban by 2020. After January 1, 2020, servicing of R-22-based systems will rely solely on recycled refrigerants or simply not at all. New systems must operate on an air called “410-A.  [Some have argued 410-A is just as bad for the environment, but another story].  The bottom line, if you have not converted your air conditioner to 410-A by 2020, you are going to feel the heat or put out significant dollars to upgrade.  You nd your real estate agent need to consider this development when pricing a new home. Here is the issue  in a nutshell.  410-A cannot be utilized in older systems which previously used R-22 without making some substantial and costly changes to system components. Most new systems being installed today run on 410-A, but most existing systems still use R-22. Adding to the problem is many manufacturers have skirted the requirement in recent years by continuing to manufacture R-22 units but shipping them “dry” and having local HVAC installers fill with R-22 onsite. As a result, many HVAC professional have stockpiled R-22, but the price continues to rise in many areas to well over $100 a pound. As the price gets even high, consumers choice will be to pay over $1000 for black market or recycled R-22, or just convert to 410-A.  Neither may be in your budget. “What is going to happen to the poor, those on limited incomes or even average middle class folks who don’t have perhaps $10,000 by 2020 to change out their air conditioners to 410-A?  Given the huge demand leading into 2020, won’t prices even go higher? Is Congress likely to sit by and let people die in the heat?” These are serious questions being asked by NHSCA Executive Director and Counsel Art Chartrand. Will the Trump administration delay the ban or offer other alternatives? There are other gasses posing promise. Some are marketing R-421a from  RMS of Georgia marketed as Choice Refrigerant that claims it can replace R-22 with the same equipment. Everyone needs to carefully watch this and other new technologies that may affect this issue. Right now, most equipment manufacturers will not endorse R-421a as suitable. Home service contracts provide service, repair or replacement for various items such as dishwashers, ovens, electrical and plumbing systems – and heating, ventilation and air conditioning systems (HVAC) – that become inoperable due to normal wear and tear during the contract period. Contracts do not provide coverage to upgrade units to meet new EPA rules, including 410-A, which could mean unexpected out-of-pocket costs to home sellers and buyers when replacement of an air conditioning system component is necessary. “We wish to avoid consumers thinking or hoping that their home service contract will totally pick up this cost. The industry would love to,  but tis is akin to the government mandating all cars run on electricity. Car manufacturers could not cover that conversion cost under warranty. Home service contract providers cannot bear the cost of this huge and unproven governmental experiment either,” said Chartrand.  The good news is while the 410-A upgrade is not covered, the expense will often be far less with a home service contract in place says Chartrand. If 421a or other gasses prove worthy, then even more so. So prepare your existing home with a home service contract in place to help mitigate any cost. And be very aware when buying a new home.  “We are recommending home buyers order a specific HVAC inspection to determine the exact life expectancy of the system – that is in addition to a routine home inspection,” said Billy Jensen, Fidelity National Home Warranty. “If an older system is still in good condition, and could be operational for another 5-10 years, it may not be a problem.  But if the system is more than 15 years old, and could potentially need expensive repairs or component replacement in the future, it’s probably best to negotiate with the seller.” As always, the NHSCA suggests homebuyers work with a licensed and seasoned real estate professional to assist them in navigating this issue, as well as ensuring their own understanding of the refrigerant issue and its potential impact on them if a service problem arises, including the specific coverage afforded by their home service contract. 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. #23

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A home warranty is a service contract that provides coverage for the repair or replacement of major home systems and appliances due to wear and tear over time.
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