09.26.2001 :: Real Estate News
How Do Warranty Companies Differ?
by Dennis Polyniak

I was recently asked how warranty companies differed in their coverage and how they provide service to plan holders. While on the surface this may seem like a simple question, it is anything but simple. First of all the warranty companies write the plan to fit the state in which it will be sold and design the coverage to best fit the circumstances. As an example in the northern part of the country the emphasis is on heating and in the South the main thrust is on air conditioning. In Hawaii they have few air conditioners and even fewer furnaces. In the East they use oil to heat their homes and an oil fired furnace is larger and much more costly to repair than a smaller and simpler gas fired furnace. In the North they use a lot of radiant heat which is mostly electric. When a warranty company decides to do business in a particular state they first do research on what they will be at risk to fix and how difficult this task will be. For instance there needs to be an adequate contractor base from which to draw and those contractors have to be able to respond at any hour of the day in order to service emergencies. Getting parts in all areas regardless of weather and other conditions is also a consideration.

Here in California and more to the point in Santa Cruz County we are fortunate to have a good supply of contractors and parts to repair or replace whatever breaks in a home. The warranty provides good all around coverage which is easily delivered at ant time in any season. This combined with our mild weather and building standards make it a very pleasant place to live and own real estate.

One of the covered items in a home warranty is pest control. You know those pesky critters like ants, spiders, mice and lots of other things which we would just as soon not worry about. We are lucky that our area is not subject to any unusual pests. Take the South east or Hawaii, where they have roaches you can saddle up and ride, or termites that can devour a lot of your home almost over night. We have small termites here, in some areas the termites are ten times as large with ten times the appetite. One reason I intend to make most of my real estate investments right here in California, and right here in our local area.

Dennis Polyniak sells home warranties for Old Republic Home Protection. You can e-mail Dennis at dennisp@orhp.com with any topics you would like to see discussed or call him at 1.800.445.6999 x178.