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Home warranties: Be aware

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Home warranties: Be aware

In today’s real estate business climate, home warranties are commonplace. The way it works is when the home owner has an HVAC/R problem (or any other problem with the property for matter), the homeowner contacts their Home Warranty Company to file a claim. The Home Warranty Company is hooked up with a licensed HVAC/R contractor that performs all of their claims work. The HVAC/R Contractor makes a service call, determines the problem, and in some cases actually goes ahead and installs equipment. If the problem exceeds what the Home Warranty Company is prepared to pay, the HVAC/R contractor could be hanging out on a limb. In some cases, equipment change-outs require other component replacement for the system to be brought up to code…or in other cases, additional equipment is required to even make the system work properly.

While a myriad of the examples could be listed, the point is that contractors should be aware that Home Warranty Companies don’t dictate system compliance, the code does.

Source: The HVAC/R Newsletter is a quarterly news brief published by the Arkansas Department of Health, HVAC/R Section

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