Difficulty: Easy

Average Score: 97%

Which problem would be covered by a home warranty?

Rationale

The water heater burst, requiring complete replacement.

Home warranties are designed to cover the repair or replacement of major home systems and appliances that fail due to normal wear and tear. A burst water heater falls squarely within this scope, making it a valid claim under a home warranty policy.

A (The television that the previous owner left behind quit working.) YOUR ANSWER

A home warranty does not cover personal property, including appliances or electronics that were not part of the home's original systems or appliances. Since the television is considered personal property left by the previous owner, it is not eligible for coverage under a home warranty.

B (The title search did not reveal the lack of a discharge of lien.) YOUR ANSWER

Issues related to title searches and liens fall under legal and financial matters rather than mechanical or structural problems. Home warranties do not cover legal issues concerning property titles, making this scenario irrelevant to warranty coverage.

C (The neighbor's fence is encroaching onto the subject property.) YOUR ANSWER

Disputes regarding property boundaries and fences are considered legal disputes and are not related to the functionality or integrity of home systems. Home warranties are limited to repairs of appliances and systems, thus this scenario is outside their purview.

D (The water heater burst, requiring complete replacement.) CORRECT

Home warranties are specifically designed to cover incidents like a burst water heater, which is a significant appliance failure. This situation falls under the type of claims that warranties are intended to address, providing financial protection for homeowners.

Conclusion

A home warranty provides coverage for the repair or replacement of home systems and appliances affected by normal wear and tear. Among the options presented, only the burst water heater clearly qualifies for warranty coverage, as it directly pertains to the essential systems of the home. The other scenarios involve personal property, legal disputes, or issues not related to the home's operational systems, which are not covered by warranty policies.

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