Home Warranty – What Is It?

Heard this term and wonder what exactly it is?  Do you need a home warranty?  How is it different than homeowner’s insurance?  Did you know it’s customary in Southern California for a home seller to provide a one-year home warranty to a new buyer?

While an insurance policy provides coverage for your home in the event of unexpected property damage or loss it does nothing to help you out should you find yourself with unexpected breakdowns of systems or equipment  due to normal wear and tear.  Plumbing leaks, breakdowns of appliances or malfunctioning furnaces can be very expensive surprises.  A home warranty will provide repair or replacement of covered systems and equipment after a small service call fee.

A homeowner may purchase a home warranty for their property.  During escrow for a real estate transaction the seller is typically expected to pay the cost of a one-year home warranty for the buyer.  The buyer may then continue to renew this warranty each year and potentially save $1000’s in home repairs.

If you have more questions about how a home warranty works please reach out at jillmiranda@jillmiranda.com or 619-248-1431.