If you’re planning to buy a home, you’ll need to know how home insurance and home warranties differ and why you’d even want a home warranty.
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Think about the following scenario: You buy a house you like and settle in with your family happily. Then, about a month later, the air conditioning unit suddenly stops working. Once you call in a technician, you learn that it’s going to take a few thousand dollars to repair or replace it.
This situation can be avoided if, during the home buying process, you negotiate with the seller to cover your home warranty costs for at least the first year of ownership after you close.
Home warranties usually cover the systems of your house like the A/C, heating, plumbing, and appliances. Appliance manufacturers only provide a very limited type of warranty, but if the appliance that breaks isn’t brand-new and you have a home warranty, the warranty will cover it. If the technician cannot fix the issue, they’ll often be able to replace it for you. If you like the home warranty, you can always renew it after the first year.
“Home insurance is not interchangeable with a home warranty.”
Home insurance, on the other hand, usually covers different aspects of the home, such as damage from unforeseeable events—fires, storms, falling trees, etc.
Home insurance is not interchangeable with a home warranty, and that’s why we always do our best to negotiate for home warranty coverage when representing our buyers.
If you have any further questions about home warranties, don’t hesitate to reach out to me. I would be happy to help you and point you toward a few home warranty companies we know and trust. Until then, happy home hunting!
