Buying a home is a long and expensive process and requires a major investment from both the buyer and the seller. Like any other investment the home buyer makes, they want their investment to be protected. This is where home warranties come in. Depending on local customs, home warranties are bought by either the buyer or the seller, because they protect both parties. These policies are relatively inexpensive and are usually prepaid for a year in advance. Reviews and comparisons of policies can be found here.
These policies cover a number of different things related to the home. Most commonly covered are things like air conditioning, doorbells, electrical systems, duct work, and telephone wiring. When the homeowner has a problem that is covered under the warranty, they contact the home warranty company, which then makes arrangements for the appliance or system to be repaired or replaced. In most cases, the home owner must pay a small service fee, which would be much smaller than if they paid for the service out right. There are different types of policies, and each policy covers different things. Your real estate agent can help you find out more information about your policy, including if upgrades are available.
You should also remember that like any other warranty, sometimes the warranty company will decline a claim. This may be because you have violated the policy by making unapproved repairs, or because the damage was due to negligence or improper use instead of normal and safe practices. When signing the policy, make sure you underst and what is and is not covered, and that you otherwise underst and the terms of the policy. This will prevent further heartbreak and stress down the road.
Sometimes a claim is denied even if you feel that it is legitimate. In this case, you can turn to your real estate agent for help. Often a real estate agent can act as a liaison between you and the home warranty company. Most warranty companies would avoid costly litigation and would prefer to reach an amicable situation as their client. Above all, if you are considering buying such a warranty or you have been given one as a gift, it is very important to underst and the warranty as fully as possible, so that any problems can be solved as quickly and smoothly as possible.
