Why do I need a home warranty?
Your home is most likely one of your biggest investments. Unexpected repair or replacement costs can easily strain your budget if you do not have a home warranty. Plus, finding an approved and insured contractor to solve your problem can be stressful and inconvenient. A home warranty cannot prevent systems or appliances from breaking down, but it can help make covered repairs or replacement easier and less costly.

How does a home warranty work?
When a covered item breaks down, request service by calling to speak with a customer service representative. Once repair or replacement is complete, and as long as we have your proper email address on file, we will send you a follow-up customer satisfaction survey regarding the service preformed.

Why a Home Warranty?
Your home is likely one of your largest investments – don’t trust the covered repairs or replacements to just anyone. Make the right choice in case things go wrong.

Is everything in my home covered by a Home Warranty?
No. While not everything is covered, coverage for many of the most frequently occurring breakdowns of home system components and appliances. Please review sample contract for specific covered items, terms and conditions, limitations and exclusions.

How do I know my service contractor is qualified?
Our comprehensive network of approved and insured contractors are consistently monitored and graded on their performance through our customer satisfaction survey program.

Is the Home Warranty renewable?
Yes, warranty holders may renew their coverage (at the option of the Home Warranty provider).

We purchased our current home a little over a year ago and one of the perks to entice potential buyers was an included third party home warranty purchased by the seller. I have to admit, when buying an older home, it sure does ease your concerns about the home falling apart right after you close.

A home warranty plan is simply insurance you can buy against sudden and accidental breakdown. Typical coverage is for the mechanical systems of your home such as electrical, plumbing, furnace, and hot water heater. Our plan included a few extras such as our appliances, central air, pool pump and filter. Our plan would cover the cost of repair or replacement minus a seventy five dollar fee which is paid at the time of repair. Structural repairs such as our roof were not covered. Companies and plans vary so do your homework if you’re considering buying a plan for your home.

Home protection plans are not replacements for home owner’s insurance, it’s just an extra piece of mind. Don’t skip having the home you are planning to buy inspected because it includes such a policy. Always hire a licensed professional inspector to look the place over.

So, are they worth the money? In my personal example, even if I had purchased the plan with my own money I would have came out far ahead financially. In fact, we renewed our policy at my expense without hesitation. Shorty after we moved in we lost electricity in two rooms. Our bathtub in the second bathroom started leaking behind the wall. We purchased the home in the winter and in late spring when we opened the pool we discovered the sand filtration system was shot. Those three items combined cost me $225 ($75 x 3 occurrences). Our home warranty plan paid over $3000 for the repairs and a new pool filter.

As you can see, we saved in that situation. I renewed the plan for another year because the alternative would be to use a credit card when something major breaks and that’s not a plan at all. Ideally you would have an emergency fund building interest somewhere but until you have that established a home warranty might just be the answer. We even added the washer and dryer to this year’s plan.

Tip: Even though we knew we would renew, we made them work at selling it. We ended up with a free upgrade with a lowered initial repair fee of $40 rather than the $75.

The bottom line is how much risk you’re willing to take. You can save $250 to $500 a year by skipping the home warranty if you’re a gambler. It is a large expense, especially if you believe the risks are low due to the condition of your home. How do I see it? If my 20 year old furnace or my 50 gallon hot water heater goes out, I’m going to be very happy to write that $40 check to have it repaired or replaced. If nothing at all happens I’m still ahead and I didn’t have to worry about it for a year. If my home were newer and everything was under five years old, I’d probably take the $500 and get that emergency fund started.

Homeowners insurance covers personal belongings and the entire house in case fire, theft, or natural disasters such as lightning, a tree falling, heavy snow damaging a roof etc.  A homeowners insurance policy does not cover regular maintenance and replacement costs of appliances and most home systems, which is where home warranty coverage picks up.  A home warranty is a type of wear and tear insurance against equipment and appliances such as heater, A.C. unit, plumbing and electrical systems.

What does homeowners insurance cover?

• Personal property, furniture, clothing, jewelry etc.
• Structure and contents of the home
• In most cases your living expenses if the home is not in a living condition due to natural disasters
• Appliances are covered as well, but only in the event of natural hazard or special circumstances.
• If someone visiting your house gets injured while in your property (such as a slip and fall) and if you are sued, you are covered by homeowners insurance.
• Homeowners insurance protects you from fire, lightning, tree-falls, burglary, storms, etc.

What does a home warranty cover?

• Like homeowners insurance, a home warranty can be adjusted or customized to suit the homeowner.  In most cases, basic coverage includes the repair and replacement of all major appliances such as Heating/Cooling systems, Water Heaters, refrigerators, Dishwashers, Ranges, Ovens, washer/dryers etc.  Plumbing and electrical system are also included in most basic coverage plans.
• Optional coverage varies.  Many companies also cover roof maintenance in the basic coverage, but some companies charge extra.
• Coverage is generally effective 30 days from the date of buying the policy. But be aware that claims can be denied by companies for various reasons, including what they consider “maintenance negligence”.

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.

The first step is to decide if you need home warranty.  You should get a detailed home inspection report on your existing house from a third party inspector.  This report will help you understand the potential and existing problems with your appliances, and will also help you decide if you need home warranty.  If some appliances are aging and need special attention, be sure to check if the warranty company provides sufficient coverage for those appliances in particular.

Check with your friends and colleagues as to which providers do they use, and how their experiences rate them.  Be sure to ask about their satisfaction levels with service and claims processing. The may some comments about customer service, contractor turnaround, quality of work etc.

It is important to choose a company that has a decent track record, as many consumers are dissatisfied with the services offered by many home warranty companies and it is indeed difficult to deal with some companies when it comes to claims processing.  It is not easy to find a perfect home warranty company, but you can always chose a company with least number of complaints.  There are several ways to research.

1. Check with several companies via internet.  You can often receive a free quote from an online company with no obligation.
2. Check the company’s track record using trade organizations such as Better Business Bureau
3. Research the company over the Internet for any negative reviews.  Insurance discussion boards list complaints against many home warranty companies.
4. Your real estate agent or broker will also be able to provide the name of few reliable warranty companies in the area.

Next, determine if you need additional coverage.  The coverage can vary from plan to plan with regard to duplicate sets of equipment (second refrigerators) or items such as pools ad spas.

Now, start calling the companies and make notes of their offerings. Be sure to collect information such as -

• Annual premium

• The deductible per incident (including any service call fees)

• Average turnaround time for repairs

• Additional costs for any extra coverage, if necessary.

• If you have any aging equipment reported in your Home Inspection report, be sure to confirm that the warranty company provides adequate coverage.

• Determine the period of time before the police will be in force (especially if you need immediate coverage)

• Ask for clarifications and contractual obligations.  Take note of how you are treated, which can be a good indicator of how the company treats its customers after the sale.

Lastly, glance over the contract terms when you are ready to buy the coverage.

Now you have completed your due diligence.  Hopefully you have gained knowledge about home warranty coverage in this process. Having a better idea about your coverage will help you when you are dealing with the conflicts with home warranty companies.

Home Seller’s Warranty
Now that the real estate market is cooling somewhat, you’ll more likely to find your competitive home sellers offering a seller’s warranty. But what exactly is a seller’s warranty? How can a home warranty help sell your property?

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $35-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty
A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), Ram Home Warranty, and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Typical Home Warranty’s Standard Coverage Includes:

Built-in kitchen appliances: Dishwasher, Oven/Range/Cooktop, Microwave, Garbage disposal, Trash compactor, etc.

Central heater and ductwork

Plumbing system, water heater, drains

Electrical system and telephone wiring

Attic and exhaust fans

Limited pest control

Extended Coverage Available:

Limited roof repair

Central air conditioning

Washer/Dryer/Kitchen refrigerator

Well and septic systems

Pool equipment and/or Spa equipment including Solar

Save Money Buying Your Warranty
Shop online instead of ordering through your agent or escrow company. The major providers offer a discount price for orders placed online. You save the commission paid to a third party who normally arranges the policy.

Providing this service adds to your home’s overall appeal to home shoppers. It protects the home buyers against unexpected breakdowns. who never worry about how much repairs will cost or who to call to fix a broken item. A home warranty gives your home buyers the peace of mind they seek.

What is a ‘Home Warranty?’ A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies. Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true? Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. “Yep” he says “Your A/C equipment is shot, you’re going need a new one.” “Good thing I have this warranty” you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it “serviced” each year or because the service tech says the reason it went out was because of a “Pre-existing” condition.

I’ve seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that’s money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of “we won’t warranty it ‘if’s’.” The Technician who comes to your home may be the one who’ll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims · Lack of regular maintenance · Pre-Existing conditions · Questionable ‘Code’ issues · Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn’t. I’ve never seen a policy with blanket coverage so don’t assume it will ‘cover everything in the home’ like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I’m betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG’s office of your state if you’ve had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $50-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty
A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Providing this service adds to your home’s overall appeal to home shoppers. A home warranty gives your home buyers the peace of mind they seek.

Thank you for searching for home warranty coverage information!