HOME WARRANTY FOR BUYERS AND SELLERS

What is a home warranty?

You can obtain a home warranty through your Realtor to cover the major appliances and systems in your home for a new buyer. These will usually include heating, air conditioning, kitchen appliances, electrical, plumbing and more. Depending on the policy you may be able to include septic and well issues as well. If you are purchasing a property that has swimming pools or Jacuzzis or a sauna, please consult with your Realtor to see if they have a policy to cover those items.

Once a buyer takes possession of the property it would be very troublesome and expensive if something would break down such as a furnace needing to be replaced. The home warranty covers your items just like an insurance policy on your automobile. The coverage varies per policy, so consult with your Realtor and actually read the policy for specifics. The coverage is renewed and a premium due annually typically.

In the event of a problem, the homeowner contacts the warranty company and locates a repair person to fix the problem and they discuss coverage at that time. There is typically a deductible of $75 to $150 and the home warranty company will send someone in your area out that is on their list of approved vendors. This insurance can be extremely helpful to someone that doesn’t have the money for major home repairs right after purchasing their new used home.

The home warranty should be included in the sale and should be paid for by buyer or seller at the closing of escrow. Whether buyer or seller pays for it is negotiable.