If you are planning to purchase a home you know you must have homeowner’s insurance in order to apply for a mortgage.  But what about a home warranty?  A home warranty is not required when you purchase a home.  Homeowner’s insurance and a home warranty are two very different things.  Homeowner’s insurance covers the structure of your home in the event of a fire, flooding, storms, or other unforeseen tragedies.  A home warranty covers certain appliances in the home when they breakdown due to normal wear and tear.  

What is covered under a home warranty?

Each home warranty company offers different plans to suit your needs and budget.  Much like insurance, you can choose a higher premium in order to have a lower service call amount or deductible and vice versa.    Many companies also offer a variation of what the plan covers.  One plan may cover only one appliance, another could cover all appliances, and another could cover only plumbing and electric.  Sometimes multiple warranties are necessary if you want to cover something extra like a swimming pool.  

What if I have a new build?

Most home builders will warranty the structure for a year after purchase, and the appliances generally come with a manufacturer’s warranty.  However with any large purchase, always check the fine print and make note of when the warranties are due to expire so you can add or update a home warranty just before expiration.

Can I get a warranty even if my home is older or I have lived in it without a previous warranty?

Absolutely!  A home warranty can be purchased at any time no matter the age of the home or the appliances within.  

Should I purchase a home warranty when I sell my home?

Yes!  Having a home warranty in place when you put your home on the market can give the buyer peace of mind and save you the expense of a post-sale conflict.  

What if the home I’m buying does not offer a home warranty?

No problem!  Ask your Realtor® for information on a home warranty provider or turn to the internet or friends and family for recommendations.  Many companies will offer free quotes so feel free to check with a few to find the one that works best for you.  Always read the agreement carefully and make sure everything you want covered is at the agreed upon price. 

A home warranty is not a requirement for any homeowner it is simply an added layer of peace knowing you are covered when the hot water heater needs replacing or the A/C has to be serviced.  With the stress of everyday life, a little peace of mind can go a long way.  

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