Warranty Use Is on the Rise

Home warranty companies in California serviced a record 500,000 claims for repairs and replacements on behalf of homeowners in the state during 1994, according to figures just released by the Home Warranty Assn. of California (HWAC).

The claims, representing an increase of 20% over the previous year, are said to have saved homeowners $62 million in repairing and replacing mechanical systems and major appliances. About $52 million was estimated to have been saved through home warranties in 1993.

A home warranty typically covers a home’s heating, electrical, plumbing and water heater, as well as the dishwasher, cooktop oven/range, garbage disposal and trash compactor. Garage door openers, washers/dryers and refrigerators also have been covered by most HWAC members in recent years.