A buyer would be protected from risk of loss due to a failed heating system through:

• A. A home protection plan
• B. Homeowners insurance
• C. Flood insurance
• D. Earthquake insurance

Answer: (A)

The important idea is how different protections cover the cost of system failures. A heating system failing due to normal wear and tear is the kind of event a home protection plan (home warranty) is designed to handle. It provides repair or replacement of covered major systems and appliances, often with a service call fee, during the warranty period and is commonly negotiated in a sale to protect the buyer.

Homeowners insurance, on the other hand, protects against damage from perils (like fire, wind, theft) to the structure and contents, not a failing appliance or system. Flood and earthquake insurance cover those specific, separate perils and aren’t intended to address routine breakdowns of heating systems.

So the best protection for a buyer against the risk of loss from a failed heating system is a home protection plan.