Home Warranty

Home Owners' and Renters' insurance cover specific “damage” to the property. Home Warranty Insurance covers specific “repairs” that may later need to be made to your property. Most Home Warranties cover air conditioning units, central heating units, ductwork, electrical systems, plumbing systems, water heaters, faucets, and major appliances. Coverage may vary from policy to policy and from state to state. Each policy will specify what types of repairs are insured, and what the policy deductibles and limits are. There may be “optional coverage choices” or a choice between a “standard” or a “premium” policy. Unless it is a new house, an Inspector’s Certificate from a licensed home inspector is usually required before a Home Warranty policy will be issued.

Policies usually require that you call the issuer’s service department to order a repair. The service department will then send their repair contractor to do the repair work.

Policies can generally be purchased by either the Seller or the Buyer. From the Seller’s point of view, Home Warranties are an effective marketing tool that makes your property more desirable to a prospective buyer. Additionally, it protects you if something goes wrong with the property after closing. It is another form of insurance that is affordable and will give you peace of mind. It can also reduce potential conflict with the Buyer - if something does go wrong, and is covered by the warranty, it is repaired. This can be an important selling point if the home is being sold “as is.” Sellers can also benefit from some “pre-sale” coverage. In most cases, the Seller is afforded full or partial coverage during the period prior to closing, while the home is being actively marketed for sale (normally for 180 days). This coverage normally applies for both agent listed and FSBO property sales.

Buyers can buy a Home Warranty to reduce the uncertainty in budgeting by reducing the “fear factor” in estimating future home repair costs.

Be sure to fully read and understand all the options offered and the Warranty Contract itself. Make sure you understand the options and fully understand what is covered and what is not covered with the policy that you select. Make sure that you know what coverage you are actually receiving. Coverage is subject to specific terms, conditions and provisions of the Home Warranty Contract.

Sellers and Buyers are to select the Home Warranty company of their choice. Your City LLC assumes no liability or responsibility regarding any type of home warranty or home warranty contract. Your City LLC does not endorse or recommend any particular home warranty company.