At the time of sale of a home, a home warranty option is available for the buyer.  This can be purchased by the buyer or another party to the transaction for the buyer's benefit during the escrow closing process. A home warranty can offer a lot of peace of mind as a buyer is getting to know their new home and is also a useful item when negotiating an inspection or when older appliances or systems are in the home.  Below are the basic steps on how a home warranty works.

If a home system or appliance breaks down or stops working, you simply call the home warranty company direct. No need to try to find a particular company in your area.

Your home warranty company will call a service provider it has a business arrangement with that is typically in or closest to your area

The service provider will call you directly to make an appointment.

The service provider will fix the problem. If an appliance or system is malfunctioning and can’t be repaired, depending on your contract coverage, your home warranty company will pay to replace and install the appliance. This typically caps at a specific dollar amount so be sure to know how much your coverage is for

You will pay a small trade service fee (typically $75.00 or so) for the service call.  You are not bound to any hourly rates. You just pay the flat fee, which offers real peace of mind

What’s not covered? Check your specific policy, but in general: l Outdoor items such as sprinklers l Faucets l Refrigerators, washers, dryers and garage door openers l Spas and pools, unless specific coverage requested l Permit fees l Haul aways. This can fluctuate quite a bit depending upon the area and the plan chosen.

What can cause denial of a claim? l Improper maintenance l Code violations l Unusual wear and tear l Improper installation

General coverage can sometimes include: l Air conditioning l Dishwashers l Doorbells l Furnace/heating systems l Water heaters l Ductwork l Garbage disposals l Inside plumbing stoppages l Ceiling fans l Electrical systems l Range and oven l Telephone wiring.  However, each warranty provider offers different levels of service and other items such as a swimming pool, etc. as an a-la'-carte item to be purchased as an add-on.