Home Warranty
We often see on the real estate sign post "Free Home Warranty". As a first time home buyer or even a savvy buyer may not know what it is and why would they need one.
A Home Warranty is Not Hazard Insurance
Don't confuse a home warranty with a hazard insurance policy. A warranty replaces items that fail on their own. Your hazard insurance takes care of items damaged in fires, by wind or by other covered events.
What is a Home Warranty
A home warranty contract (sometimes referred to as a residential service contract) is an agreement from a third-party company that says it will repair specified items in a home, usually for a term of one year. Studies show that homes with a home warranty contract normally sell faster and for more money than homes without such a contract.
Benefits of a home warranty Home warranties repair or replace for a limited period of time the mechanical systems and major built-in appliances that may break down due to normal wear and tear. Most plans are renewable annually.
heating plumbing electrical air conditioning Advantages for buyers Advantages for sellers
Every plan differs so consult your real estate agent or the home warranty company to get detail information about the coverage and service charges.
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