Home Warranty Policies Can Be Good for Both Buyer and Seller

Many times, purchase agreements will call on a property seller to cover the cost of a home warranty policy. While the buyer’s agent may select a figure that will cover a basic policy and any additional coverage specified, the actual cost generally is less than the “not to exceed” amount included in the contract. However, buyers should not view the dollar limit as a credit; and they cannot obtain additional coverage for items not specified in the contract, such as a refrigerator they are bringing from their current residence. Who orders the policy and the level of policy to be ordered also should be discussed, as a basic policy and a premium policy both may be less than the limit; but the seller’s agent likely would order the least expensive policy. Buyer’s agents need to make sure their client receives the appropriate level of coverage. | Read More