Why You Should Buy a Home Warranty

A home warranty is put in place to protect the homeowner. It is particularly beneficial when selling real estate. A home warranty acts as protection for the seller and insurance for the buyer. When you qualify for a mortgage loan, the lending institution will definitely require a certificate proving there is insurance on your home.

However, depending on the insurance broker, sometimes there are exceptions regarding coverage. A new homeowner might soon discover their plumbing, heating or electrical problems aren’t covered under their home insurance. This would be disheartening after just moving into a new home. Click Best Home Warranty Company

A seller’s home warranty is in place to cover problems that occur in a home once the deal has been closed. After buying a home, perhaps draining your bank account to provide a down payment, the last thing you need is problems requiring expensive repairs.


Your house insurance is not likely going to pay for troubles with your heating system or problems with your plumbing. These problems, which seemed to come out of nowhere, can be very stressful when settling into a new home. Hopefully, the previous owner had bought a seller’s home warranty.

A seller’s home warranty will cover the costs of repairing damages in your new home after you close the deal. The home warranty will pay for failures in items like heating, plumbing, electricity and air conditioning.

There is a catch, however. A seller’s home warranty will only pay for these repairs if the failure occurs on its own. Coverage can be denied for reasons such as code violations, improper maintenance and unordinary treatment of the affected system.

When shopping for a home warranty, it is imperative to carefully read and understand the terms and conditions of the agreement. Once the contract is signed and the home warranty is paid for, it would be difficult to dispute the policy.

A home warranty normally provides coverage for one year. When selling a home, it is important to advise the buyer of the renewal date. It would be totally up to the new buyer to renew and continue to pay for the home warranty.