The Different Types Of Home Warranties Available
When it comes to home warranties, there are two main types that home buyers and sellers should be aware of: seller's warranties and buyer's warranties. Seller's warranties, also known as home warranty of sale, are typically offered by the seller of a home as an incentive to the buyer.
These warranties cover the repair or replacement of certain appliances and systems in the home that break down due to normal wear and tear. Seller's warranties are usually valid for a period of one year from the date of sale.
Buyer's warranties, on the other hand, are offered by home warranty companies and provide coverage for a set period of time, usually one year. These warranties protect the buyer from having to pay out of pocket for repairs or replacements of covered appliances and systems. Buyer's warranties can be purchased at any time, even after the purchase of a home.
When it comes to deciding which type of home warranty is right for you, it's important to weigh the pros and cons of each. Seller's warranties may be more affordable, but they typically only cover a limited number of items and have a shorter duration. Buyer's warranties, on the other hand, tend to be more comprehensive and offer longer coverage periods.
No matter which type of home warranty you choose, be sure to read the fine print carefully so that you know what's covered and what's not. And remember, a home warranty is not a substitute for homeowners insurance, which is a must-have for all homeowners.
A home warranty is an insurance policy that covers the repair or replacement of home systems and appliances that break down due to normal wear and tear.
There are two main types of home warranties:
- A home warranty that is offered by the builder of a newly constructed home
- A home warranty that is purchased by the home owner of an existing home
The type of home warranty that is right for you will depend on a number of factors, including whether you are buying a new home or an existing home, and what kind of coverage you are looking for.
If you are buying a new home, the builder may offer a home warranty as part of the purchase price. This is typically a one-year warranty that covers defects in materials and workmanship.
If you are buying an existing home, you may want to purchase a home warranty to protect yourself from expensive repairs or replacements. Home warranties typically cover major systems and appliances, such as heating and cooling systems, plumbing, electrical systems, and major appliances.
When choosing a home warranty, it is important to compare the coverage and costs of different policies. Some home warranty companies offer different levels of coverage, so you can choose the policy that best meets your needs. Be sure to read the fine print of any policy before you purchase it, so you know what is and is not covered.