SB 1224: Home protection contracts.

Existing law regulates home protection companies that issue home protection contracts, as defined, to repair or replace components, systems, and appliances of a home for a specified period of time. Existing law requires the contract to provide a system of service for effectuating a repair or replacement of the system, component, or appliance.

This bill would require the contract to also include a system of service for cash authorize a home protection company to make a cash payment in lieu of repair or replacement of the system, component, or appliance when it is impossible to effectuate a repair or replacement, when effectuating a after making a determination, as specified, including when the repair is impossible or economically wasteful, the repair or replacement exceeds the contract aggregate, or upon request of the consumer. or the consumer has voluntarily accepted a cash payment.