Continental Home Warranty Unveils New Extended Plan Coverage; Home Warranty Leader Expands Service Offering With Support of New Owner, Chicago Title

Business Wire, June 23, 1999

WALNUT CREEK, Calif.--(BUSINESS WIRE)--June 23, 1999--

To further increase confidence in residential real estate transactions, Continental Home Warranty (CHW), an operating unit of Chicago Title and Trust Co., announced its new Extended Plan Coverage home warranty package.

According to a recent Gallup Poll of homeowners and real estate professionals, about three-quarters of California homeowners believe that a home warranty would give them a greater level of confidence in purchasing a previously owned home.

Furthermore, demand for expanded plans has grown as the use of home warranties has increased statewide. According to the Home Warranty Association of California, home warranty usage of existing homes sold in the state has increased from 25% in 1985 to more than 80% in 1995.

"We have undertaken extensive research with homeowners and real estate agents to determine desired coverage plan elements," said Shelly Lind, president, CHW. "Our new plan helps meet the growing demands of homeowners and positions CHW as a continued industry leader."

A home warranty is a service contract that covers a home's major operating systems and appliances for one year, typically after the close of escrow. In addition to its standard plan, CHW's new extended plan coverage could include:

-- Air conditioning - window units, condenser housing, registers,

grills and filters

-- Plumbing - hose bibs, replacement toilets

-- Water Heater - sounds caused be sediment

-- Heating System - heat lamps, registers, grills and filters

-- Dishwasher - racks, rollers and baskets

-- Range/Oven - clocks, rotisseries, racks, handles, knobs and dials

-- Microwave - door glass and shelves

-- Trash compactor - removable buckets

-- Garage Door Opener - door hinges, springs and up to two remote

transmitters

The plan also covers up to $250 per policy to alleviate the cost of repairs related to non-compliance with current building code regulations required during the course of repairs or replacement of covered items. For example, in addition to covering the repairs on a water heater, the CHW policy would help cover costs of bringing the water heater up to current earthquake and building codes.

CHW, has been a leading underwriter of home warranty insurance policies throughout California for 25 years. Chicago Title purchased CHW in April. "As a Chicago Title operation, we have the financial security to offer consumers reasonable, far-reaching packages like the Extended Plan Coverage," Lind added.

Chicago Title (NYSE:CTZ) provides title insurance, escrow and closing services as well as property valuation, credit information, default management and flood compliance products through a network of more than 340 offices and approximately 4,000 agents nationwide.

Chicago Title's subsidiaries -- including Chicago Title Insurance Co., Security Title, Ticor Title Insurance Co. and Security Union Title Insurance Co. -- issue approximately one in every five title insurance policies in the United States.

Other subsidiaries and divisions furnishing real estate-related products include Chicago Title Flood Services Inc., Chicago Title Credit Services Inc., Chicago Title Field Services Inc., Chicago Title -- Market Intelligence Inc. and Consolidated Reconveyance, a division of Chicago Title Insurance Co. Heritage American Insurance Services Inc. and Continental Home Warranty provide products and services throughout California.

For further information on the Chicago Title products and services, visit the company's Web site www.westerndivision.ctt.com. Information on CHW can be obtained by dialing 800-TO-Cover (800/862-6837) or visit its Web site at www.homewarranty.com.