What is a Home Warranty?
A Home Warranty is an insurance policy that covers certain physical systems within a home. Typically, the warranty will cover the electrical and plumbing systems, the furnace and range, roof, and other items, for one year from the date of closing. If a repair is needed, the homeowner calls the warranty company, who dispatches a technician to repair or replace the item in question. The homeowner pays a small deductible, usually around $45-$75 and the warranty company covers the rest. Home warranties are not only used by owner/occupant homeowners, they are also used on rental homes by landlords. It is also very common for sellers to purchase a home warranty for the buyer for peace of mind. Below are links to various companies who sell home warranties. Most home warranties currently cost about $300-$400.
American Home Shield
Best Home Warranty
Fidelity National Home Warranty
First American Home Warranty
Home Warranty of America
Old Republic Home Warranty
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