Difficulty: Easy

Average Score: 100%

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, which include furnaces. Since the furnace malfunctioned shortly after the buyer's move-in, this scenario falls within the purview of a home warranty's coverage for unexpected breakdowns.

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

Home warranty programs do not cover issues related to property assessments or undisclosed liabilities. These concerns are typically the responsibility of the homeowner or may fall under real estate transaction disputes rather than warranty coverage.

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

Errors in tax proration are related to financial aspects of the home purchase and do not pertain to the physical condition or operational functionality of the home's systems and appliances. Home warranties specifically focus on repairs and replacements rather than financial discrepancies.

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

This scenario is a typical claim covered by home warranty programs, which are designed to protect homeowners from unexpected breakdowns of essential systems like heating. Since the furnace failure occurred soon after moving in, it is a valid and likely covered claim under such a warranty.

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

Home warranty programs do not cover issues related to the property's history or paranormal activities. Such claims fall outside the scope of physical repairs or replacements, focusing instead on subjective experiences that have no bearing on the operational condition of home systems or appliances.

Conclusion

Home warranty programs are designed to cover unexpected breakdowns of major systems and appliances, making the claim regarding the furnace the most relevant and likely to be approved. In contrast, the other options relate to financial, legal, or non-physical issues that are not addressed by home warranties. Understanding what home warranties cover is essential for homeowners to effectively utilize these services, particularly in cases of appliance failures shortly after purchasing a property.

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