This program came about because of the problems I’ve noticed while servicing customers with Home Warranty policies.  In the fine print of those contracts you will find a term “pre-existing”.  What that means is that if the insurance company thinks that the problem (usually a problem that costs a lot of money) existed before the policy was purchased, they don’t have to pay for the repair.  Many times after we put our savings towards the purchase of our new home we have that false sense of security because the homeowner purchased a Home Warranty policy.  The last thing we would expect is for the Home Warranty Company to tell us that when your unit is not cooling and the compressor is bad that they are not going to replace it because they feel it was “pre-existing”.  Many times I was faced with a customer in that same situation, who needed anywhere from $3,000 to $5,500 to replace their unit knowing full well that they just spent it on closing costs.