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A home warranty is a contract between the buyer and the seller that outlines the coverage for repairs and replacements of certain essential systems, appliances, and major components in a residential property.

Seller's Warranty: What It Covers

A seller's warranty typically covers: * Repairs to plumbing, HVAC, electrical, and appliance systems * Replacement of major components such as the water heater, furnace, or air conditioner * Permits and inspections required by local authorities

Seller's warranties usually have a limited duration, ranging from 1-5 years, depending on the contract terms.

Buyer's Warranty: What It Covers

A buyer's warranty typically covers: * Repairs to plumbing, HVAC, electrical, and appliance systems * Replacement of major components such as the water heater, furnace, or air conditioner

Buyer's warranties usually have a longer duration than seller's warranties, often ranging from 10-25 years, depending on the contract terms.

Key Differences Between Seller's and Buyer's Warranty

The main difference between seller's and buyer's warranty is the level of protection provided to each party. A seller's warranty typically offers more comprehensive coverage, while a buyer's warranty provides a lower-cost alternative.

A key advantage of buyer's warranties is their cost-effectiveness, with prices often significantly lower than those of seller's warranties.

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