Home “warranty” or home “service contract” or “extended warranty,” I get confused. What is the difference?
Excellent question. We will help sort it out for you. We just defined basic home service contracts for you. A number of providers of home service contracts market their products under the term “home warranty.” That’s OK. Warranty is a marketing term and one which real estate professionals use as well. Home “warranty” is also a term used by new home builders to describe their guaranty on the quality of their construction. Home service contract providers and home builders are in separate industries. Home service contract providers do not build homes and cannot assume liability for faulty home construction. Home service contract providers cannot and do not cover home structural defects or problems with home craftsmanship or finish. However, several states allow home service contract providers to also cover some structural items (such as roofing systems from leaks). “Extended” warranty or extended service contract is a term most associated with new, retail electronics and goods. New produc
Excellent question. We will help sort it out for you. We just defined basic home service contracts for you. A number of providers of home service contracts market their products under the term home warranty. Thats OK. Warranty is a marketing term and one which real estate professionals use as well. Home warranty is also a term used by new home builders to describe their guaranty on the quality of their construction. Home service contract providers and home builders are in separate industries. Home service contract providers do not build homes and cannot assume liability for faulty home construction. Home service contract providers cannot and do not cover home structural defects or problems with home craftsmanship or finish. Extended warranty or extended service contract is a term most associated with new, retail electronics and goods. New products generally have an original manufacturer warranty for 30 days to one year. Extended contracts are generally very specific to an individual pr
