Home Warranty Services Division
UPA's Home Warranty Services division benefits a multitude of customers through their local utility, municipality, or cooperative. Most of the top ten electric, gas and water utilities in the U.S. offer home warranty service programs. UPA currently has contracted utility partnerships throughout the Eastern United States. We offer warranty programs which cover combinations of water heaters and indoor and outside water lines. Our revenue sharing partnership agreements are established with UPA providing the service work and the utility company marketing the service directly to its customer base. Customers are provided with a toll-free telephone number with 24/7 availability to call in the event of a problem. Our technicians are authorized to repair or replace any water heater, water line or other covered equipment exhibiting problems. Every customer is encouraged to complete and return a simple evaluation form regarding their experience with our service technician. As a result, UPA’s service performance has earned the highest customer satisfaction rating in the industry.
The emergency home repair and maintenance market is estimated to be over $15 billion as quoted by Warranty Week, a publication for warranty management professionals. Industry statistics reveal that Americans buy more insurance and extended warranty programs than any other country in the world. According to the National Home Service Contractor Association, approximately 50% of all homes sold include a home warranty service contract of some kind. Residential customer penetration numbers range between 3% and 17% of eligible customer base. A utility with four million customers can anticipate in excess of 400,000 paying customers for its home warranty service programs.
It is estimated that over 35% of utility companies regardless of size offer some variation of home warranty programs. As utility companies consolidate and in the event deregulation occurs, enhancing brand awareness will have a positive impact on customer choices. The vast market for home warranty programs presents a significant business opportunity. Utility customers generally have a high degree of confidence in their utility provider. With the right approach to marketing, great customer service and the utility's support, UPA can help create and sustain additional revenue opportunities for its partners.