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Home warranties evolving, include 'greener' home improvements

With California at the forefront in "going green" and energy efficient upgrades gaining momentum among sellers of resale homes, home warranties have become proactive in support of the movement by providing coverage for many of these improvements, according to an official of the Home Warranty Association of California.

David Jasko, a member of the board of directors of HWAC and president of 2-10 HBW Warranty of California, said buyers are becoming more aware of energy efficient items and desire them.

"Energy efficiency is connecting with consumers because people realize that as a nation we need to move toward that goal. As a result of increasing numbers of greener' resale transactions, more home warranty programs offer additional coverage for items that contribute toward a greener' home," Jasko said.

He said from a Realtor perspective preparing a house for sale in an energy efficient manner is a positive move in accelerating sales even during challenging markets.

Jasko cited such energy efficient items as tank-less water heaters and other cutting edge items now being routinely seen in resale homes. Additionally, he noted that "dual zone" HVAC units can be significant energy savers by enabling homeowners to use energy only in the zone they are occupying. Energy efficient, digital programmable thermostats add to these savings.

"Home warranties typically cover these home enhancing items while others may be covered either in the standard menu of coverage items, or within optional coverage. Also, where a buyer has decided to make these upgrades, many home warranty companies allow the customer to use the amount of the repair or replacement towards an upgrade of a more energy-efficient unit," Jasko said.

The HWAC official encourages consumers to visit the Web site http://energystar.gov.com to evaluate the energy efficiency of their own appliances and learn ways for an energy audit from their local energy company prior to sale so that the information can be used in marketing the house and provide greater assurance to the purchaser of that resale home. A home inspection, an HVAC check and/or a recorded maintenance program can increase confidence and marketability as well, Jasko said.

He explained that home warranties also can offer additional coverage relating to code violations in corrections required with such items as plumbing, water heaters and the electrical systems. He said coverage for permits, Freon recapture, and haul-away of appliances may also be available.

Jasko points out that recent research indicates that going green by renovating just a single room can measurably increase resale value, depending on the materials used. He said Eco-friendly recommendations include utilizing bamboo, cork and eucalyptus flooring products, wood alternatives, locally sourced products and Eco-friendly paints, stains and finishes, ultimately effecting savings in energy and, in some cases, cost. Examples that plug into your home warranty coverage would include such items as low flow toilets and some faucets.

"We continue as an industry to provide excellent coverage at a modest price, [$250 to $350 annually] and now this includes the burgeoning area of going green' with upgrades," Jasko said.

Typically, a home warranty covers a home's major operating systems and appliances against breakdowns due to normal wear and usage for one year after the close of sale. Items covered include plumbing, heating and electrical systems, most built-in appliances and water heaters. In recent years, most HWAC member companies have provided additional coverage for plan holders for such items as garage door openers, washer/dryers and refrigerators.

HWAC is a statewide organization of home warranty companies representing approximately 95 percent of contracts sold in California.

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