Few Details about the Home Warranty Insurance

The last possible thing about which the home buyer worries about after closing is about the things that can possible malfunction or break in the new home. Since the home warranty can cover numerous systems and items, for the peace of mind, it is also necessary to get home protection plans. Buying home warranty plan is a great idea for the first time buyers, who have no experience in maintaining homes.

This type of insurance mainly offers coverage on:

  • Dishwashers
  • Air conditioning
  • Heating/furnace
  • Doorbells
  • Garbage disposal
  • Water heater
  • Electrical systems
  • Ceiling fans
  • Telephone wiring
  • Range and oven

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Who mainly pays for home warranty?

It entirely depends on the local customs, whether the seller will pay for the home protection plan or whether the buyer will pay for it. In fact, it actually varies. In many places, it is quite normal for the sellers to pay for the coverage as it is beneficial for the seller. The reason behind it is that this way the buyer will not be calling the seller in case something breaks. Besides, a number of real estate agents also give this type of warranty as a gift to the buyers at closing.

The cost of home warranty insurance:

Before you buy a home warranty, you need to be aware of the details like these are pretty inexpensive, on the basis of coverage. In some cases, the home warranty companies run special sales, discount policy prices or offer some additional coverage for the same price. These policies are mainly prepaid for a year in advance, at which time these expire and can also be renewed by the homeowner at slightly higher fee.

How does this policy work?

Though specific home warranty insurance plans offer specific type of coverage, but these mostly work in the similar manner:

  • In case a home appliance or system breaks or stops working, then the homeowner can call the home warranty company
  • The insurance provider will call the homeowner to make one appointment
  • The home warranty company will call the provider with which the company has a business arrangement
  • The provider will fix the issue. In case any appliance malfunctions and can’t get repaired, then on the basis of the contract coverage, the home warranty company will pay to replace as well as install the appliance.
  • Here the homeowner pays a small trade service fee

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