Difficulty: Hard

Average Score: 47%

Which claim for damages would be most likely to be covered by a home warranty program?

Rationale

A furnace that breaks a few weeks after the buyer moves in.

Home warranty programs typically cover major home systems and appliances, including heating systems like furnaces. When a furnace fails shortly after a new owner takes possession of the home, it is likely to fall under the warranty's coverage, providing the owner with necessary repairs or replacements.

A (a special assessment for a sewer which was not disclosed) YOUR ANSWER

This claim relates to financial assessments and legal obligations associated with property ownership rather than mechanical failures or defects in covered systems. Home warranties do not cover issues regarding undisclosed assessments or property-related financial disputes, as these are not part of the warranty's intended protections.

B (an error in the tax proration on the settlement statement) YOUR ANSWER

Tax proration errors are financial discrepancies that occur during the closing process of a property sale. Such matters are typically handled through legal or real estate channels and are not covered by home warranty programs, which focus on the repair or replacement of home systems and appliances rather than financial or administrative issues.

C (a furnace that breaks a few weeks after the buyer moves in) CORRECT

Home warranty programs are designed to address unexpected breakdowns of major systems like furnaces soon after a home purchase. Therefore, this claim is most likely covered, as it pertains to a mechanical failure that falls within the warranty's purview for repairs or replacements.

D (the fact that the property was the site of a paranormal event) YOUR ANSWER

Paranormal events do not impact the physical systems or appliances within a home, and home warranties do not cover claims related to the property’s history or any supernatural occurrences. This type of claim is outside the scope of what a home warranty is intended to address.

Conclusion

Home warranties are structured to protect homeowners from unexpected repairs on essential systems and appliances. Among the options provided, a furnace breaking shortly after moving in is the only claim that aligns with the typical protections offered by a home warranty. Other claims, whether related to financial assessments, administrative errors, or paranormal events, fall outside the warranty's coverage, highlighting the specific nature of warranty protections in homeownership.

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