Understanding Home Warranties

I’ll admit: the first time I heard about home warranties I questioned if they were worth it. As it turns out, home warranties are great for buyers and sellers alike. Imagine you just bought a home and the furnace stops working or the washer dies. While dependent on the coverage purchased, these repairs might be completely covered. Many of the policies will cover a surprising range of common household issues, from systems to appliances. While an insurance policy will cover accidents and catastrophes, a home warranty is more about the every day repairs that add up. It’s an affordable way to combat maintenance expenses that are the bane of every homeowner.

So what’s in it for a seller? Peace of mind. Murphy’s Law dictates that right after we sell, that’s the obvious time when things are going to break. Rather than the possibility of an angry buyer convinced we’ve sold them a lemon, a home warranty gives that buyer a solution to their problem. It’s an affordable way to leave our house in the best possible condition for its next steward.

It’s becoming more common for buyers to ask sellers for a home warranty in the purchase of a home. These policies, even those with extended coverage for things like pools, wells, or septic systems, are generally very affordable. From the standpoint of the seller, the cost can be wrapped into the closing documents and taken out before proceeds distributed. In the event that a home doesn’t come with a home warranty or the buyer decides they want to pay for it themselves, the cost can be part of their purchase or in many cases made separately within a short time after closing.