Is there any cross over between home service contracts, insurance and home structures or construction?
Not normally. In rare instances when common sense alternatives do not exist, a home service provider may offer some incidental cash payment in lieu of repair or replacement. For example, your condenser has failed on your air conditioner and can be repaired, but the technician discovers your house has other defects and electrical code deficiencies. You determine a remodel and a new electrical service and infrastructure is overdue and required. It may make better economic and practical sense for a cash settlement to apply to your overall remodel. All states but Virginia (which presently license home service companies as insurers) would allow this incidental cash payment without it being considered insurance. Some home service companies provide coverage if damage is caused by an electrical surge. This is because failure of an appliance can be from internal electrical failure, power company supplied surge or even lightening or a combination of all three. Damage may be covered by your homeo
