The Homebuyers Warranty
Providing a homebuyers warranty is optional on the part of the seller, but it can be a worthwhile selling feature, particularly for homes that are more than a year or two old. The warranty protects the major systems and appliances in the home against breakdown for twelve months after the closing date, offering repairs or replacements as necessary.
Depending on the warranty purchased, there may or may not be exclusions and/or deductibles, and the warranty may be either a basic one or it may be extended to cover items like swimming pool and spa equipment, garage door openers, etc. The cost of a warranty is likely to be between $450 and $700, depending on the property and the coverage required.
If the seller does not wish to pay for a homebuyers warranty within the contract, the buyer may opt to pay for it himself, as it is a cost-effective way of protecting the new owner against unexpected repair or replacement costs after purchase.
There are several companies offering homebuyers warranties. Application can usually be made online, either by the buyer or by his agent, and the premium can either be paid at the time of application or can be including in the closing process. Warranties are initially for one year, but in most cases they can be extended to a second year by the payment of a renewal premium.
Homebuyers Warranty Sources
First American. Website. Telephone 1 800 444 9030
HMS National. Website. Telephone 1 800 941 9000
Home Buyers Warranty VI. Website. Telephone 954 585 6500