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Interior Designer Kenn Gray Shows Home Decor Ideas
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898 East Columbia Ave, Reading, OH 45215 home for sale, real estate in Reading, OH - Video

By Amy Hoak, MarketWatch

When attracting buyers to their homes, sellers will often throw in a home warranty for a year to sweeten the deal. And its often an effective incentive.

But over the past decade or so, more current homeowners have been using home warranties year after year, according to Art Chartrand, counsel for the National Home Service Contract Association.

A home warranty is a service contract that commonly covers the repair or replacement of your homes appliances and systems, including your heating and air conditioning systems.

People use them for the convenience of being able to call one number when an appliance breaks, without having to research service providers, he said. Others like them as a budgeting tool, figuring that the costs of a contract will be well worth it if three appliances die in one year, for example.

Sounds great, but heres the rub: Home warranty companies are also some of the most complained about companies on Angies List, a website where consumers can find reviews of local service providers. Top complaints are regarding what is covered and who is sent out to do the work.

Heres one horror story: Two days after Heidi Linzt bought a house in Santa Monica, Calif., the water heater went out. The home warranty company sent someone out to fix it, and the repairman ended up damaging the gas line. When someone from the gas company came out to inspect the situation, he confirmed the potentially dangerous situation. It could have been horrific, Linzt said.

Still, she has home warranties for the rental properties that she owns in Las Vegas, something that she says saves her time. And she loves the company that shes working with now.

Its really about understanding what youre getting, said Angie Hicks, founder and chief marketing officer of Angies List. Its a personal decision. It can be an alternative to saving up the money [for maintenance and repairs], but you need to know what youre getting and what is covered.

The cost of a home warranty will vary by company, but often averages about $500 for one year, Chartrand said. When a problem arises with a home component that is covered by the warranty, youll also pay a $60 to $75 service fee when a contractor is dispatched to your home, he added.

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Amy Hoak's Home Economics: What to know before buying a home warranty

Fort Lauderdale, FL (PRWEB) August 04, 2014

Douglas Stein, president of HMS National, a leading provider of home warranty products and maintenance plans, has been named president of the National Home Service Contract Association (NHSCA), a national non-profit 501(c) (6) organization serving home service contract providers and consumer interests.

As president of NHSCA, Douglas Stein will serve as an advocate for the home warranty industry and work to further educate consumers about the value home service contract providers deliver.

Working with fellow leaders to further the home warranty industrys visibility is my top priority, said Stein. Homeowners receive invaluable services and support from the organizations reputable and licensed members, and I am honored to help guide its future.

The NHSCA works to improve the publics understanding of the value and benefits of home service contracts, as well as encourage sound and ethical business practices and standards. In 2013, the association's members sold 3.5 million service contracts totaling $2 billion in revenues, while saving consumers nearly an equal amount.

About HMS National For more than 30 years, HMS National has been working for millions of homeowners and tens of thousands of real estate professionals to make the process of buying, owning and selling real estate safer, more enjoyable and more efficient. HMS Nationals goal is to "Protect Your Every Move." A pioneer and innovator in the home warranty industry, HMS National is a member of The Cross Country Group which specializes in service businesses, customer relationships and superior service and support. HMS has consistently been a valuable resource for real estate professionals by providing the HMS Home Warranty, a wide range of professional support tools, marketing training and products, and leading Errors and Omissions (E&O) insurance.

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Douglas Stein Elected President of National Home Service Contract Association

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