WHAT IS A HOME WARRANTY?
If you are considering buying a home, condo or townhouse, then you should know about home warranty plans. The term home warranty is used to describe a variety of products. In some situations, new homebuilders use the term to describe the standard coverage they provide on items in a new home. In other contexts, it is used to describe an insurance policy purchased by a homebuyer or home seller to cover items on a resale home (not new construction). In this article, we are referring to the later type of policy –a policy purchased by a homebuyer or home seller for a resale home. In this context, a home warranty is a service contract to maintain or repair, when needed, certain items in a home, condominium or townhouse. This type of warranty is an option for buyers wanting more coverage beyond items normally covered in a homeowner’s insurance policy. Home sellers sometimes purchase this type of policy and offer this as an incentive to homebuyers to purchase their home. If a repair is needed
There are several types of Home Warranties. There’s the new home builders warranties that you get with a newly constructed home and there’s the type of home warranties you buy for previously owned homes. Of course, if you happen to purchase a previously owned home that is less than a year old it may still be covered under the builders warranty. Be sure to ask your Realtor, or the home sellers, for the builders information and contact that builder directly to ensure it will still be covered if you purchase it. How do I get one? That’s the easy question. Contact your Real Estate Agent, the Listing Agent or go to the Texas Real Estate Commissions website for a complete list of Residential Service (Home Warranty) Companies licensed in the State of Texas and call the companies directly. Click here for the list. If you’re buying a previously owned home, you may be able to get the Seller to include this type of warranty at closing. Maybe you can even get the Realtor to throw it in as part of
