Types Of Home Warranties You Need To Know About

Types Of Home Warranties You Need To Know About

If you’ve recently bought a new home, you need to purchase home insurance and supplement your coverage with a home warranty. A warranty can help you to reduce your home repair budget because it covers costly unexpected repairs. There is an array of options when it comes to finding an american home warranty Co.  However, do your due diligence locating a service that best covers your needs. 

This article highlights some of the most common warranties that you can opt for.  

1. Homeowners

Homeowners warranty is the most popular. You can buy it anytime to protect your home’s appliances and systems. Unexpected events may damage your appliances or systems and render them functionless. However, if you have this policy, your warranty company will send a technician to repair the systems. 

Homeowners’ warranties have variations. Cheap plans cover a limited number of devices around the home, while comprehensive policies can cover virtually everything ranging from plumbing tools to kitchen appliances. Furthermore, these warranties can also be tailored for different circumstances and homes. For example, you can buy a home warranty for a modular or mobile home, while a landlord can purchase a warranty for his rental property

To know the specifics of home warranties, it would be best to contact your warranty company or find insurance experts. 

2. Home Buyers

This type of warranty is designed for you if you intend to buy a new home. It saves you from the worry of servicing appliances that fall short after you’ve closed on a home sale. Most homebuyers’ warranties depend on inspections. You have to invite inspectors to assess your home and identify if it has defective equipment that is likely to fail.

If they find appliances that are likely to fail, you can use that to buy a warranty plan. However, before buying the plan, you need to be careful because most warranty companies won’t cover pre-existing conditions. Additionally, as the home inspectors conduct the assessment, it’s vital to take notes. If you identify devices that don’t have a warranty policy yet need them covered, renegotiate with the realtor or home seller for a more favorable agreement.

Unlike the homeowners’ warranty, you cannot buy a homebuyer’s warranty at any time. The warranty company will give you a window of availability though this varies from one provider to the other. However, most homebuyers’ warranties can be purchased within three months of buying a new house.

3. Home Sellers

This warranty is created for homeowners who intend to sell their homes. One advantage of purchasing it is that it has plans that can cover the repair or replacement of equipment having problems before you sell the house. This warranty can also raise the value of your home significantly because it gives prospective buyers the confidence that if they face any challenges after occupying the home, the warranty company will promptly fix it. 

Some home seller warranties even have options of transferring warranties from the seller to a new buyer. However, because plans vary depending on warranty companies, it’s vital to carefully read the policy documents to understand the terms and conditions and contracts of service. Don’t make the mistake of signing a contract if you don’t fully understand what you’re getting yourself into.

Final Words

To know the warranty that’s right for you, you need to go through different companies’ plans.