It’s not uncommon to have questions about a home warranty, particularly if you are buying a home. While comprehensive homeowners insurance is clearly an important consideration, home warranty coverage is also something to keep in mind. If you are buying a home, the seller or real estate agent might offer you home warranty coverage as an add-on when you close. Or, you can always get your own home warranty coverage after you close. But what does a home warranty cover when buying a house? That’s a great question and an important one to ask. Let’s answer it.
What Exactly Does a Home Warranty Cover When Buying a House?
What is a home warranty? Home warranty coverage, also called a homeowners warranty, is an insurance of sorts that covers systems in your home, like appliances, plumbing, ductwork, and more. Many home warranty plans cover central heating and air conditioning, washer and dryer, and even roof leaks.
How Does a Home Warranty Plan Work When Buying a House?
If you’re buying a house, there are a few different ways you might get a home warranty. As mentioned, in some cases, the real estate agent or seller will give you a home warranty along with the purchased home. Other times, you will need to sign up for your own home warranty plan. With a home warranty plan, if anything breaks, the home warranty company will usually fix or replace the item free of charge. At times, you might be charged just a small service fee for having a repair person come to your home.
What are the Benefits of a Home Warranty for a Home Buyer?
When you buy a home, there are a lot of things to worry about. You’re surely thinking about location, layout, and price. But have you thought about the appliances and systems within the home? Some homes come with a washer, dryer, dishwasher, and fridge. Most have central heating and air. Have you ever stopped to consider how old these systems and items might be? What would you do if they broke down? In order to protect yourself as a buyer, it’s smart to have a home warranty. Here are some of the benefits:
- Peace of mind
- Protection against costly repairs
- Coverage of items not covered with typical homeowners insurance
Do Home Warranties Cover Pre-existing Conditions?
No. Home warranties do not usually cover pre-existing conditions. What is a pre-existing condition? Let’s say your air conditioner breaks before you have a home warranty. In this case, that air conditioner would be considered under the pre-existing condition of your appliances. In other words, you can not expect to simply purchase a home warranty plan and have your air conditioner fixed under that plan if it breaks before you have the plan in place.
What Should I Know as a Buyer About Home Warranty Plans?
Know that a home warranty plan can really save you from unexpected expenses. Be sure to ask the seller if they will include a home warranty in the purchase of the home. If not, it’s still smart to purchase your own plan to make certain that you’ll be protected should any unexpected breakages occur. Home warranties really bring peace of mind, and that’s critical when you’re buying a home. Get a home warranty on your side and you’ll be comfortable in your new home for years to come!