Selling a House with a Homeowners Warranty: What You Need to Know

Estimated read time 3 min read

For most homes, it’s recommended that you get a homeowners warranty. This is because home conditions can change over the years and something could go wrong that you wouldn’t be able to fix on your own. This is why most home sellers get one, so they can pass the warranty to their buyer. You may also want to get a warranty because of recent construction or remodeling. Here are things you should know before selling with a home warranty.

What the Warranty Covers

Your home warranty usually has a list of what the coverage for. This can be for things like plumbing, or electrical work (missing fuses, etc.) and any structural damage that is covered under the house inspection. is dedicated to helping homeowners get the best possible price for their property.

What Is Covered

You’ll want to check with your warranty company to make sure they are licensed and bonded by the state where they sell their warranties. They will also have a list of exclusion’s as well, which lists things that aren’t covered by them. Sometimes, these are things you may not even think about. As a seller, you should check with their policy and make sure they have limited it to the things you want covered.

How Long the Warranty Is

While the warranty covers specific problem areas, the warranty company will only cover them for a certain amount of time (typically 1-5 years). If you sell your house any time after that period of time has passed, then they won’t cover any additional problems with your house. Get the details on how long they will cover these things before you buy the warranty.

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Changing Warranties

In many cases, you can upgrade or downgrade your warranty depending on what you need it for at that time. For example, if you decide to sell in a few years and the home market is unstable, then they may offer an extended warranty that will cover more conditions than the basic one would have. You should look into this before buying a new home warranty policy.

The Premiums

The premiums that you will pay will be based on the actual amount of coverage you want. How much you are willing to pay is usually based on the value of your home and what is covered. You can go online and compare different insurance companies to get an idea of what price range you should be looking at for your premium.

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