Home warranties are contracts between homeowners and warranty providers that guarantee repairs or replacements for certain components of their property. The two main types of home warranties are seller's warranties and buyer's warranties.
A seller's warranty is a type of home warranty offered by the original homeowner to the new owner or buyer when they purchase the property. This warranty typically covers repairs or replacements for major components such as plumbing, electrical systems, HVAC systems, and appliances. The seller usually bears the cost of these repairs and will handle communication with the repair service.
A buyer's warranty is a type of home warranty that covers repairs or replacements for minor components such as roof leaks, cracked foundation walls, and broken gutters. The buyer usually pays the cost of these repairs, but they are responsible for communication with the repair service.
The main difference between seller's warranty and buyer's warranty is who bears the cost of repairs and maintenance. In a seller's warranty, the original homeowner typically covers major components, while in a buyer's warranty, the buyer usually pays for minor components.
When choosing a home warranty, consider factors such as the cost of repairs and replacements, the scope of coverage, and the level of customer service. It's also essential to read reviews and ask questions before purchasing a home warranty to ensure you find the right one for your needs.