Home Warranty Providers
The expansion in both existing home sales and housing starts have aided the Home Warranty Providers industry over the five years to 2019. Industry operators underwrite home warranty policies, which protect a homeowner against the cost of repair or replacement of any structural component of a home that is caused by normal wear and tear or by a defect of a structural component or appliance. The industry is dominated by a small number of players, with the two largest players accounting for more than half of total industry revenue in 2019. After dipping in 2014, existing home sales are anticipated to have strengthened over the five years to 2019. However, homeownership has continued to stagnate across the country during the five-year period. This contrast partially explains the industry's moderate revenue volatility during the period. Due to a return to normalized activity in the domestic housing market and a slight rise in the number of existing home sales, industry revenue is forecast to increase over the five years to 2024. As a result, profit margins are anticipated to fall from 2019 levels, partially due to competition bidding up the cost of the industry's skilled workforce, particularly skilled underwriters.
This industry underwrites home warranty policies, which protect a homeowner against the cost of repair or replacement of any structural component or appliance of a home that is caused by normal wear and tear or by a defect of a structural component or appliance.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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