When Can You Get a Home Warranty?

A home warranty functions as a service contract designed to cover the repair or replacement of major home systems and appliances. This coverage typically applies when items break down due to normal wear and tear, providing a financial safeguard for homeowners. It operates distinctly from homeowner’s insurance, which protects against unforeseen events like natural disasters or theft. A home warranty aims to manage unexpected expenses related to household equipment malfunctions.

During a Home Purchase

Acquiring a home warranty is a common consideration during the process of buying or selling a residence. Sellers often provide a home warranty to prospective buyers as an incentive, making their property more attractive and offering peace of mind. This offering can help alleviate concerns about potential repair costs after a sale. Real estate agents frequently facilitate the inclusion of a home warranty in the sales agreement, with the cost often integrated into the closing costs. This arrangement typically ensures the warranty coverage begins immediately upon closing, offering seamless protection for the new homeowner.

Buyers also have the option to purchase a home warranty for themselves during the closing period, even if the seller does not offer one. This direct purchase allows buyers to select a plan that aligns with their specific coverage needs and budget. Information required at this stage usually includes the property address and the closing date. Securing a home warranty at closing can be a convenient way to budget for potential future repairs.

As an Existing Homeowner

Homeowners can decide to purchase a home warranty at any point, regardless of how long they have owned their property. Existing homeowners can directly contact home warranty companies to obtain coverage for their systems and appliances.

To get coverage, an existing homeowner needs to provide details like the property address, its square footage, and the approximate age of the home. They also specify which systems or appliances they wish to include. Most home warranty plans last for one year, though some providers offer multi-year options, and are renewable annually. It is common for a waiting period, often around 30 days, to apply before coverage begins to prevent claims for pre-existing issues.

For New Construction

Newly built homes frequently come with a builder’s warranty, which is distinct from a standard home warranty. A builder’s warranty typically covers structural defects and issues with workmanship or materials for a specified duration. Common structures for these warranties include one year for workmanship and materials, two years for mechanical systems, and up to ten years for major structural components.

While a builder’s warranty addresses construction issues, a separate home warranty can be acquired for a new home. This additional warranty supplements the builder’s coverage, protecting major appliances and systems against normal wear and tear breakdowns not fully covered by the builder. These supplemental warranties are often arranged by the buyer around closing on the new construction, ensuring comprehensive protection for the home’s components.