Newsline

Texas home warranty calls on the rise

August 9, 2000
/ Print / Reprints /
ShareMore
/ Text Size+
DALLAS, TX — The Texas Warranty Association (TWA) reported that service calls from residential service contracts have more than doubled in the past five years. According to TWA data, Texas homeowners made 548,324 service calls in 1999 compared to 253,553 in 1995.

The amount of money paid out in claims in Texas during 1999 also rose dramatically, according to the TWA. Approx-imately $62 million was saved by Texas consumers on repairs and replacement last year, well over three times what was paid out in claims during 1995.

“The dramatically increasing use of residential service contracts by individual Texas homeowners reflects a growing understanding of the coverages and provisions of our product and the value-added benefits they provide,” said Sharon Harrison, TWA president and owner of Nation’s Preferred Home Warranty.

Harrison added that there is a growing awareness among consumers that there is a high likelihood (in over 60% of sales) of an average of two major items in the home failing during the first year of ownership. TWA figures showed that nearly two service calls are made per household per year with the average claim in 1999 being $112.98.

Harrison added some other reasons for the surge in service calls. “We have an average of 300 families moving to the Dallas area every month,” she said. “We are also seeing an increase in the number of renewable warranties, which people keep after a home has been sold, for example.”

She said she works with four contractors in the Dallas area and guarantees them a yearly income.

“I pay technicians for each house for an entire year, not per call,” she added. “So every month they get a check from me, even in slow times.”

Harrison also noted that the consolidation trend in the hvacr industry has drained the availability of experienced technicians, driving up the cost of contractor-supplied warranties.

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by John Hall

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

2014 MCAA Annual Convention

Scenes from the 2014 MCAA Annual Convention in Scottsdale, Ariz.

Podcasts

NEWSmakers: Julian Scadden

Training is an ongoing process. Julian will discuss how you can generate maximum return on time and energy invested training by following a three part process. Listen to this podcast to get expert tips on training, tracking and follow up. 

More Podcasts

THE MAGAZINE

ACHRNEWS

NEWS 04-14-14 cover

2014 April 14

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

SERVICE CALLS POLL

Which statement on service calls best applies to your business?
View Results Poll Archive

HVACR INDUSTRY STORE

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

 

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

DON'T MISS A THING

Magazine image
 
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.

STAY CONNECTED

facebook icontwitter iconyoutube iconLinkedIn i con