residential service contract


Also found in: Acronyms.

residential service contract

An insurance policy that will cover repair or replacement of major home systems,such as plumbing,heating,air conditioning,or electrical.Either the buyer or seller can purchase the contract, although sellers usually do so as an incentive for a buyer to purchase that property rather than another.
References in periodicals archive ?
Gallagher continued, "In today's changing real estate market, home buyers expect more for their money, and having a Residential Service Contract in place increases a home's value.
New Optional Coverage Choices allow the Residential Service Contract to be "custom fit" to each home's needs.
Gold Upgrade Option - brand new to the Industry, this option provides added coverage for service items (such as permits, haul away, code violation upgrades and cranes) that are not included in the typical Residential Service Contract.
Silver Upgrade Option - provides additional repair or replacement coverage for items that are typical exclusions in all Residential Service Contracts.
Stating that Texas homeowners are increasingly sophisticated in their knowledge and use of residential service contracts (home warranties), the Texas Warranty Association (TWA) reported today that service calls on contracts have more than doubled in the past five years.
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.
Typically, residential service contracts include standard coverage of a home's air conditioning, heating, electrical and plumbing systems, as well as water heaters, kitchen appliances, such as a range, oven, dishwashers, and disposal.
Sharon Harrison, president of Nations Preferred Home Warranty of Dallas, who was recently elected the first president of TWA, reports that TWA members represent approximately 99 percent of residential service contract sales in the state.
Because of dramatic population growth in Texas, particularly in urban areas like the Dallas Metroplex, Austin and Houston, the growth potential for residential service contract sales is enormous.
Commenting on the continuing rise in residential service contract sales in Texas over the past several years, TWA reports (based on TREC data) that 266,645 residential service contracts were sold in Texas during 1999.
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