Real estate professionals report more satisfied clients and less liability for all parties. Buyers have more confidence in buying a resale home. Sellers can be protected against costly repairs during the listing and escrow period. Home warranty contracts cover mechanical systems such as plumbing, heating, electrical, water heater, and most built-in appliances. Structural components are typically not covered.
Some policies cover garage door openers and roof repairs up to a specified limit.
Contracts normally run for a year, but they may be extended at the owner's option for a renewal fee. If the protection plan is ordered at the time a home is purchased, inspections are usually not required. Sellers can protect their mechanical systems while selling their home for less than a dollar a day. There is usually a waiting period after the application is submitted before the policy goes into effect and an inspection may be required. Additional coverage is available for an extra charge for a pool, spa, air conditioning, and free-standing appliances, such as refrigerator, washer, and dryer.