A Home Warranty can be a great marketing tool for the seller, while offering peace of mind to a buyer purchasing a home.
Home warranties cover repair and replacement of items and systems in a home. The home warranty can be purchased by the buyer or the seller.
A home seller will often offer the buyer a home warranty as peace of mind – the buyer knows that if something happens to a covered item he or she has a home warranty in place to help cover the cost of repairs.
Many home warranties if purchased during the listing period also protect the seller. The warranty can help absorb the cost of repairs if a household system fails while the seller has the home on the market.
No matter who is purchasing the home warranty, you should carefully read the warranty to see what systems are covered.
I recommend you call the home warranty company and ask as many questions as you need to, until you’re comfortable with how the home warranty works, and how it protects your investment.
Some important features to examine and compare in home warranties are -
- Under what conditions will items or systems be repaired or replaced?
- How much will a service call cost?
- What happens if an item cannot be repaired?
- What is the maximum amount the warranty will pay to replace an item?
- How long will the warranty last?
- Who handles the repairs?
- Does your warranty company require a home inspection?
A home warranty is not the same as homeowner’s insurance.
A home warranty will typically cover appliances and household systems such as plumbing, electrical, heating and cooling and other fixtures the buyer purchases.
Homeowner’s insurance will normally cover the structure of a home and personal items and provides liability coverage in case someone is hurt or injured on the property.
You should be certain to ask your home warranty company if the warranty will transfer, and if there is a fee.
