Home Buyers Warranty – Things To Know - Realty Times

Welcome to this article on Home Buyers Warranty (also known as Homeowners Warranty). As a first-time homebuyer, understanding what is covered and what is not can be overwhelming. In this section, we will cover the basics of Home Buyers Warranty, its benefits, and how it works.

What is Home Buyers Warranty?

Home Buyers Warranty is an optional insurance policy that protects homeowners against unforeseen events that may occur during the homebuying process. It provides financial assistance to cover repairs or replacements of damaged items in the home, such as appliances, plumbing fixtures, and electrical systems.

What Covers Under Home Buyers Warranty?

Home Buyers Warranty typically covers certain types of damages, including:

• Appliances (e.g., refrigerator, oven, dishwasher)
• Plumbing fixtures (e.g., sink, toilet, water heater)
• Electrical systems (e.g., lighting, outlets)
• Roof damage or wear and tear
• Carpets and upholstery

How Does Home Buyers Warranty Work?

The process of getting a Home Buyers Warranty typically involves the following steps:

1. Sign a purchase contract with your lender that includes the warranty provision.
2. The homebuyer signs an additional document outlining the terms and conditions of the warranty, including coverage limits and exclusions.
3. A licensed insurance agent or broker will review the documents and provide guidance on how to file a claim if needed.