Home » Information

Should you buy a home warranty?

No Comment

A home warranty is there to help protect you the seller. The home warranty also offers some insurance to the buyer of the home.

Normally whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home. Often times what you think you are covered for, is not included in your policy, and things like electrical problems, heating and mold infestation are not covered. This can be stressful and these kinds of additional expenses will certainly not be welcome.

If you have a seller’s home warranty, once the deal is closed, any problems that may occur in the home will now be covered. So any expensive repair you may have to do, or pipes you have to fix will be taken care of by the warranty. Your home insurance will not likely cover these kinds of problems that will occur from time to time.

Your seller’s home warranty also covers, whatever the cost is to repair any damage in the new home, once the deal is done. Things like failures in the electricity, plumbing, air conditioning, and heating will be paid for by the home warranty. Be aware though, that unless these failures occurred on their own, the seller’s home warranty will not pay for the repairs. If you commit a code violation, or are found wanting in terms of how you care for the affected system and any maintenance, you cannot be denied coverage.

If you decide to get a home warranty, be extra vigilant in reading and comprehending the stated terms and conditions on the contract agreement. You will be unable to dispute or challenge the policy once you have signed the contract and made payment. The term of a home warranty is usually one year, so you will have coverage for that period of time. So if you should decide to sell your home, you should let the buyer know when the home warranty will need to be renewed, and leave it up to them to decide whether or not they want to extend it.

In the final closing costs of your mortgage, you may also include your seller’s home warranty. You also have the option of buying home warranty and deferring paying until the deal is closed. Just as you would do, to get a number of home insurance quotes, the same applies when seeking a home warranty. Seek as many quotes as you desire and make your decision accordingly.

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.