Difficulty: Hard

Average Score: 33%

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 the repair or replacement of major home systems and appliances that fail due to normal wear and tear after the buyer takes possession of the property. A furnace breaking shortly after moving in falls squarely within this scope, as it is a major system integral to the home's functionality.

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

Home warranties do not cover costs associated with property assessments or issues related to undisclosed liabilities. These assessments are typically related to property taxes or municipal fees and fall outside the warranty's scope, which focuses on the repair and maintenance of home systems and appliances.

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

Errors in tax proration are related to financial settlements and contractual agreements during the home buying process. Such financial disputes are not covered by home warranties, which are designed to address physical defects or failures in home systems and appliances, not financial or legal issues.

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

This claim is the most likely to be covered by a home warranty. Warranties are intended to protect homeowners from unexpected repair costs shortly after purchase, especially for essential systems like heating. A furnace is a covered item that is expected to function reliably, and its failure due to normal wear would typically be addressed by the warranty.

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

Home warranties do not cover any claims related to the history of the property, including paranormal events. Such claims are outside the scope of warranty coverage, which focuses solely on the physical systems and appliances within the home, not on historical or spiritual matters.

Conclusion

Home warranty programs are designed to protect homeowners from unexpected repair costs related to major systems and appliances. Among the choices presented, a furnace breaking shortly after the buyer moves in is the most relevant claim for coverage, as it directly involves the failure of a covered system due to wear and tear. In contrast, the other options pertain to financial issues or historical claims that fall outside the scope of home warranty protections.

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