What is a home warranty?

Answer: A home warranty benefits home buyers by providing reassurance that they can move in without worrying about shelling out even more for surprise repairs. Home warranty coverage, limitations, costs and co-pays vary from company to company, and I recommend shopping around for comparison purposes, but they all offer coverage on the major, structural home components. A home warranty can also benefit home sellers (if they don't have it already), since it can cover these elements during the listing period; some companies even offer free seller’s coverage during this time with the hopes that the buyer will decide to continue the coverage. Oftentimes, home sellers will offer to pay for the first year of a buyer's home warranty to entice buyers to bite.

Answer: It is a warranty protecting the home owner against possible future expensive repairs.

Answer: A home warranty is an "insurance" policy bought to protect the beneficiary from catastrophic costs associated with a major failure of one of the homes components (plumbing, HVAC, septic system, roof, etc.). When something happens, the owner normally calls an "800" number and the Warranty company will normally check to make sure the issue is covered, take a "co-pay" and then dispatch a vendor to diagnose the problem and make corrections.