Difficulty: Medium

Average Score: 50%

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 are designed to cover the repair or replacement of major home systems and appliances that fail due to normal wear and tear, which includes furnaces. A furnace malfunction shortly after the buyer's move-in date is a typical scenario where a home warranty would provide coverage.

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

Special assessments are typically related to property taxes or local government charges for improvements and are not covered by home warranty programs. Such issues pertain to the financial obligations of property ownership rather than the operational status of home systems or appliances.

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

Errors in tax proration are related to financial transactions during the home buying process and do not fall under the scope of home warranty coverage. Home warranties specifically address mechanical failures or defects in home systems, not financial or administrative discrepancies.

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

Home warranties are specifically designed to cover situations like this, where a major appliance, such as a furnace, fails shortly after a home purchase. This type of claim directly aligns with the purpose of a home warranty, which is to provide peace of mind regarding the functionality of home systems after the sale.

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

Claims related to paranormal events are not recognized by home warranty programs, which focus on the functionality and repair of home systems and appliances. Such claims are outside the realm of typical warranty coverage, which is limited to physical components and systems of the home.

Conclusion

Home warranty programs are intended to protect homeowners against the costs associated with the failure of major systems and appliances, making claims like a broken furnace immediately after moving in most likely to be covered. Other choices involve financial assessments or paranormal issues, which fall outside the purview of home warranty services. Thus, understanding the specific coverage of home warranties is essential for homeowners seeking protection against unexpected repair costs.

Related Questions

View all