Home Protection Contract Law and Legal Definition

Home protection contract refers to agreements entered between home protection companies and residents of a state. Under this contract, a home protection company agrees to provide protection to the residents’ homes. Home protection company means any company which is licensed to issue home protection contract.

Protection granted by home protection companies include :

1.Repair and maintenance of any component or system of a home.

2.Replace those appliances of a home which has been damaged due to any defect.

The following is an example of the state statute (California) defining home protection contract:

Cal Ins Code § 12740 defines home protection contract as a contract or agreement whereby a person, other than a builder, seller, or lessor of the home which is the subject of the contract, undertakes for a specified period of time, for a predetermined fee, to repair or replace all or any part of any component, system or appliance of a home necessitated by wear and tear, deterioration or inherent defect, arising during the effective period of the contract, and, in the event of an inspection conducted.