HOME WARRANTY
 HOME WARRANTY PROFESSIONALS ASSOCIATED WITH SLBR
A Home Warranty plan is a legally binding contract regulated by the State of Utah Insurance Department. They are often provided by the Seller to the Buyer at closing as part of the real estate transaction. However, Home Warranty Plans are also available for purchase directly by the Buyer at closing. A typical buyer warranty contract provides coverage from the date of closing for one full year and is often renewable from year to year.
For more than 25 years Home warranty plans have added a level of security to the residential real estate transaction by:
- Easing the purchase decision
- Reducing many after-sale headaches
- Protecting a budget from unforeseen repair/replacement expenses
Home Warranty Plans are very similar from one to the other, yet there are significant variations in coverage between contracts based on the price. The scope and quality of the coverage are also related to the price of the contract. You, as a consumer, must make comparison of the available warranty contracts and make a purchase decision based on your individual coverage requirements, desires and budget considerations.
When making a home warranty comparison here are some factors to consider:
Standard Coverage
- What is included in the "basic" warranty fee
- What are options, and what is the cost for those items
- Price and duration of the contract
- Amount of the deductible/service fee
How the deductible/service fee is applied to a claim:
- Per trade/Occurrence provision
- Per Item/Occurrence provision
What is the Claims Handling philosophy?
- Repair and Replacement coverage
- Repair or Parts Only coverage
Pre-Existing Conditions
While no Home Warranty contract covers pre-existing conditions, some contracts do include a clause that may expand coverage to include unknown existing problems: Note these clauses should be read carefully and fully understood - they are often very restrictive.
A typical coverage statement common to all home warranty contracts reads:
"Covered components and systems must be in good working order on the effective date of the contract. This contract does not cover existing defects."
"Must-read" facts about warranty Plans
Home Warranty Plans are not a "replacement" for Seller Disclosure, Home Inspections or buyer Do Diligence. Home Warranty plans make no representation or guarantee of property condition. Home Warranty plans provide limited mechanical break-down protection intended to offset costs associated with repair or replacement of a major systems and appliances which mechanically fail during the contract period due to normal wear and tear.
Systems and Appliances must be specifically listed in the contract to qualify for coverage. Coverage is applicable to those listed items that are in good working order and located within the perimeter of the main foundation of the main dwelling.
As a standard guideline, home warranty coverage does not apply to claims where a listed component was not in good working order on the effective date of the contract, items or systems that have not been maintained or have been modified; any required upgrades; costs associated with code requirements / code violations or costs of permits; consequential damages caused by a covered component failure; claims due to improperly installed, inadequate or inefficient components and systems.
A typical home buyer warranty contract includes coverage for; central heating system, air conditioning system, electrical system, interior plumbing system and water heater. Many built-in major appliances such as oven/range, microwave oven, dishwasher, garbage disposal are also covered.
The best decision regarding a home warranty, as with any service is a well informed one. The Internet is a rich source of information for many home warranty plans and their options. There are also product brochures and flyers available from most Wasatch Front real estate offices. And ask an expert -- your REALTOR®.
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