How Does a Home Warranty Work When Buying a House?
When purchasing a home, there are many considerations to remember, including the protection against unexpected repair costs. Getting a home warranty home warranty when buying a house will protect you financially. This guide has some helpful tips and information so you can understand how the process works and whether or not buying a home warranty is the best option for you.
How does a home warranty work when buying a house?
Two basic scenarios apply when you’re looking for a home warranty when buying a house. First, the seller may already have an active home warranty policy. If so, they should be able to transfer it to you when you close on the property. Second, you may purchase and pay for a home warranty with your own money.
Understanding the contract and terms
Ensure you know what the home warranty covers and its terms. Here are some things to look for before you purchase a plan.
Find out how much your premiums are, as well as the cost for individual service calls.
Ask the home warranty company if there are specific exclusions — such as repair coverage for swimming pools or roof damage.
Consider paying for supplemental coverage if the warranty company offers it (this should help cover the repair of pools, spas, and other items not part of a traditional policy).
Read the fine print to determine what’s covered and what isn’t (such as older appliances or issues related to improper maintenance).
Consider paying for additional coverage like pest control if it’s a concern.
Ask whether any waiting periods could cause a gap in coverage so you’re aware.
How to make a claim
Here’s how to file a home warranty claim in the event you need repairs:
Check your policy to verify your plan covers the issue.
Contact the home warranty company and tell them you need to file a claim.
Explain the problem in detail and take note of your claim number.
The warranty company will send a home repair specialist to your home directly.
Once they assess the damage and make the repairs, you’ll pay the home warranty company for the service fee.
They’ll repair or replace the appliances.
If the cost to replace something is higher than the value listed on your policy, you’ll be responsible for paying the difference.
Coverage during the home-buying process
So, who pays for a home warranty when buying a home? A home warranty already active on a property can be transferred. In some cases, sellers may offer to purchase a home warranty as an incentive for the buyer to make an offer. But if there’s no existing warranty plan, you must pay for it yourself. Some companies have a 30 to 60-day waiting period, while others have none. Ensure you have an active home warranty if you’re concerned about possible issues with the home’s appliances or major systems.
How to choose the best home warranty plan when buying a home
Choosing the right home warranty ensures you get the best protection for your new home. Here are some tips to help you make an informed decision:
Assess Your Needs
Determine which systems and appliances you want to cover.
Consider any unique features of your home, such as a pool or spa, that might require additional coverage.
Compare Plans
Look at different home warranty companies and compare their plans.
Check the coverage limits and ensure they align with your needs.
Evaluate the cost of premiums and service fees.
Read Reviews
Research customer reviews and ratings for the home warranty companies you are considering.
Ask friends, family, or your real estate agent for recommendations.
Understand Exclusions and Limitations
Carefully read the fine print to know what is and isn’t covered.
Be aware of any exclusions, such as pre-existing conditions or improper maintenance issues.
Check for Waiting Periods
Some warranties have waiting periods before coverage begins. Make sure you know how long this period is and plan accordingly.
Evaluate Customer Service
Consider the reputation of the company’s customer service.
Look for companies that offer 24/7 support and easy claim filing processes.
Consider Supplemental Coverage
If your home has unique features or high-end appliances, consider paying for supplemental coverage to ensure these are protected.
Review the Contract
Ensure you thoroughly understand the terms and conditions of the contract before signing.
Confirm the process for filing claims and the company’s policy on repair vs. replacement.
For a reliable and comprehensive home warranty option, consider Porch Home Warranty. They offer whole-home warranties designed to provide extensive coverage for your home’s major systems and appliances.
If you’re buying a new home, consider getting a home warranty to help protect expensive appliances and systems. In most cases, the premiums and service call fees will be lower than paying for repairs out of pocket. Do your homework and make sure you research several companies and read reviews. Overall, getting a home warranty when buying a house is a smart move that will protect you financially and give you peace of mind.
