Home Warranties Gaining Traction With Buyers

Homeowners are being encouraged to invest in a home warranty, which covers most major appliances and systems in a residence — items that most insurers will not cover. For instance, when piping leaks or bursts, many homeowner’s insurance policies exclude both the cost of a plumber and the cost of replacing the pipe. A home warranty fills in those gaps. As for appliances, their limited warranties often only cover manufacturing defects. Home warranties can bridge those gaps also, as the holder continually renews the policy beyond the manufacturer’s warranty. One of the big expenses for any homeowner is fixing and/or replacing a house’s HVAC system. Because most units come with warranties, the homeowner probably will not need to use a home warranty for some time after initial installation. However, such a policy can save a bundle when that manufacturer’s warranty expires. Sellers often can put potential buyers’ minds at ease by including a home warranty in the sales transaction. This is especially true for those selling older residences who want to focus on touting the aesthetics of a house and not answering questions about the structural integrity of it. | Read More