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Ben Gonzalez introduces the topic of residential service contracts, often marketed as home warranties. He welcomes Elizabeth Salinas Strittmatter from the Texas Department of Licensing and Regulation to explain these contracts. Elizabeth defines a residential service contract as a legal agreement that protects specific components within a home, including large appliances and systems such as electrical, plumbing, air conditioning, and heating. These contracts provide coverage for damages resulting from specific circumstances, including power surges, defects in workmanship or materials, and normal wear and tear.