Warranties on Resale Homes
A home warranty allows you to move in with confidence, knowing that their appliances and the other major mechanical systems of the home are covered. A basic service contract will pay for the repair or replacement of the dishwasher, oven, range, garage door opener, water heater, disposal, wiring, plumbing and HVAC systems.
The cost of a warranty is based on the size of the home, whether it has a pool and whether optional items are added. Coverage for optional items that add to the price include refrigerators, well pumps, septic tanks, swimming pool pumps, spas and free-standing appliances such as freezers, washing machines and dryers. Because your home warranty is renewed annually, you can always add items for coverage down the road.
Warranties on New Construction Homes
Builders typically provide their own warranties for newly constructed homes. They generally include one-year coverage for the builder's workmanship and two years for repairs and replacement of failing components such as such as windows, heating, ventilation, doors and trim, air conditioning, electrical systems and plumbing. More often than not, the builder will also offer 10-year coverage for major structural defects. Additional third party coverage can be purchased for home components not covered by the builder's warranty.
Benefits of Home Warranties
For you, the benefits of a warranty are realized when an appliance or mechanical system is no longer functioning properly. All it takes is a quick call to your warranty provider to either get the item repaired or replaced. Check with your warranty provider before arranging for repairs. Rather than pay for the entire cost of the repair or replacement, you’ll only pay a small service fee as stipulated in your warranty agreement.
For sellers, a warranty protects you in the event something breaks down in the home after the close. If a warranty is in place, you can work directly with their warranty provider to fix and pay for the issue. Some warranty companies also give sellers the option to purchase a home warranty when they list their home. Having this kind of warranty in place protects sellers when problems with a covered item are discovered during the home inspection.