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WHAT IS A HOME WARRANTY?

A home warranty plan is a one-year service contract that helps protect homeowners against the costs of unexpected repairs or replacements on their major systems and appliances within the home that breakdown due to normal wear and tear.

COMMON MISCONCEPTIONS

Buyers are often left with a misunderstanding of how a home warranty works and what kind of coverage is being provided. Many even confuse it with homeowner’s insurance.

COVERED ITEMS MUST:

• Have failed within the contract term.
• Be in good, safe working condition at the close of escrow and start of policy.
• Be a result of normal wear and tear.
• Be located within the main foundation of the home or attached garage.
• Not be a result of secondary damage.
• Be a failed mechanical component, not cosmetic.

PLAN OPTIONS

Home warranty base plans are typically offered in different tiered options that cater to needed coverage and budgets.

• BASIC – The most standard plan that covers routine heating, plumbing, and electrical systems along with select appliances.
• INTERMEDIATE – The middle-tiered plan that offers upgraded limits, additional systems and options.
• COMPREHENSIVE – The plan with the most extensive coverage and limits, included optional coverages, and items not offered under optional.

OPTIONAL COVERAGE

Individual optional coverages are offered at an extra expense to cater to the more unique features of your buyers’ homes. Optional coverages vary form home warranty company to company. Be sure to reference your policy brochure for full list of offered items.

SELLERS’ COVERAGE

Seller’s coverage can help eliminate unknown problems that may occur while the home is being listed or in escrow by protecting against the high cost of repair and replacement of home systems and appliances that fail due to normal wear and tear.

TERMS & LIMITS

All home warranty companies have terms, conditions, and limitations outlined in their contracts. Be sure to reference the policy limitations that might effect the outcome of certain failures within the home prior to making your home warranty decision.