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Im Ben Gonzalez, and This is TDI. Well, do you know what a residential service contract is? These are sometimes sold or marketed as a home warranty. And they provide coverage for some of the things inside your home. So, joining us today to discuss these residential service contracts, is Elizabeth Salinas Strittmatter with the Texas Department of Licensing and Regulation. Hello, Elizabeth. Hi, Ben. Glad to be here. Good. Well, lets start with the basics. So, what is a residential service contract? A residential service contract is simply a contract that protects certain components of your home. So, by law a residential service contract can cover large appliances in your home or certain systems, like the electrical, the plumbing, the AC, and the heating. And these service contracts cover damage caused to these components of your home under specific circumstances. So, a power surge, a defect in workmanship or materials, or even normal wear and tear. So, say for ex