Home Warranty Plans are a useful tool for reducing the stress that comes along with buying a home. As an additional benefit, some sellers provide a Home Protection Plan for the buyer.
Several companies provide home protection plans to buyers purchasing previously occupied homes. Generally, such protection plans are available for under $400 (or more depending upon your options) and they warrant the systems in the home for one year. The purpose of these programs is to give buyers some peace of mind about purchasing a previously occupied home where the systems and appliances in the home are relatively old.
The warranty typically covers the home’s plumbing, heating, air conditioning, built-in appliances, and electrical systems. Buyers should read the terms and conditions of the program they select carefully to determine what items are actually covered and to determine all exclusions. Buyers should also determine any additional costs for service calls and deductibles.
For new construction, builders typically provide a one-year warranty with the sale of the home. Buyers should inquire about any warranties available and review carefully the terms and conditions of such warranties. In addition, the systems in a newly constructed home may be under a manufacturer’s warranty when the home is purchased by the buyer.