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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, including furnaces, against unexpected breakdowns due to normal wear and tear. In this case, the furnace failure shortly after the purchase would be within the warranty's scope, making it a valid claim.

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

Special assessments related to sewer issues often fall under local government obligations and are not typically covered by home warranties. These assessments are more about property taxes or local improvements, which are outside the warranty's focus on appliance and system failures.

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

Errors in tax proration are related to the financial aspects of a real estate transaction and do not involve the repair or replacement of physical home systems or appliances. Home warranties do not address financial discrepancies that occur during the buying process.

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

This claim directly aligns with the home warranty's purpose, which is to cover unexpected breakdowns of household systems and appliances. Since the furnace failure occurred shortly after moving in, this situation is precisely what a home warranty is designed to protect against.

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

Paranormal events are not tangible issues that can be repaired or replaced and therefore do not fall under any home warranty coverage. Home warranties focus solely on the physical condition and functionality of home systems and appliances, leaving non-physical claims unaddressed.

Conclusion

Home warranty programs are intended to provide coverage for the repair and replacement of essential home systems and appliances, such as furnaces, when they fail unexpectedly. Among the given options, only the claim regarding the furnace aligns with the purpose of a home warranty, while the other options pertain to financial or non-physical issues that are outside the warranty's scope.

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