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Ben Gonzalez introduces Elizabeth Salinas Strittmatter from the Texas Department of Licensing and Regulation to discuss residential service contracts, often marketed as home warranties. Elizabeth explains that these contracts provide protection for specific components of a home, including large appliances and systems like electrical, plumbing, AC, and heating. They cover damages resulting from circumstances such as power surges, defects in workmanship or materials, and normal wear and tear, ensuring homeowners are protected against unexpected repair costs.