Popularity of Home Warranties

A Gallup Organization survey has found that California home sellers and buyers believe home warranties offer valuable protection against unforeseen breakdowns of a home’s mechanical systems and built-in appliances.

The independent survey revealed that nearly eight out of 10 would likely purchase a home warranty for the buyer of their home when they plan to sell it.

In 1990, 54% of all existing homes sold in California involved a home warranty. In 1989, about 45% of homes sold had a home warranty. Five years ago, 25% had home warranty coverage, according to the Home Warranty Assn. of California (HWAC).

Home warranty contracts generally provide coverage for home systems including central heating, air conditioning and electrical systems, interior plumbing, ducts, water heaters and most built-in appliances such as ovens/ranges, dishwashers, garbage disposals and trash compactors.