While a home warranty is an excellent way to protect any home, Liberty Home Guard understands that there is tremendous variety in the specific needs and circumstances of American homeowners. What use, then, is a one-size-fits-all warranty policy?
No matter your situation, we have a plan for you. In this post, we’ll review our buyer’s warranty coverage. We’ll help you understand what a home buyer’s warranty can cover, how it works, and how it differs from other policies.
What is home buyer’s warranty coverage?
A buyer’s warranty, like other home warranties, is a service contract to maintain and repair home equipment at an affordable cost. As the name suggests, it is specifically designed to benefit buyers of a new home.
A home warranty for new buyers affords greater protection for the buyers’ new investment. When you purchase a home, you don’t just inherit four walls and a roof. There’s also a host of home appliances and systems—electrical wiring, plumbing fixtures, water heaters, ductwork, and much more. In theory, the home inspection should catch any problems in the home, but there is always the chance that something can break down a few weeks or months after the home changes hands. Warranty coverage provides a little extra insurance and financial protection.
Can a buyer buy a home warranty?
New home buyers can purchase a buyer’s warranty for themselves. This is typically done within 30 days of closing on a new home.
Some home buyers purchase a policy from a home warranty provider directly. It’s also possible, however, to receive a warranty from the real estate agent who brokers the sale of the home. Sometimes referred to as a real estate home warranty, these policies are often gifted to new homeowners as a gesture of gratitude or good will.
There is also something called a seller’s home warranty. This is a policy purchased by homeowners who are actively trying to sell their home. These policies can be transferred to the new buyers after the home’s sale is complete, so this is another way for new residents to come by warranty protection for their new home.
What are the differences between a home buyer warranty and a homeowner warranty?
A buyer’s warranty and standard homeowner’s warranty are similar in principle, but they have some differences that are worth exploring.
Most obviously, a homeowner’s warranty is for someone who has owned the same home for several months or years. A buyer’s warranty, on the other hand, is designed for someone who has owned their home for less than a month.
The purpose of a homeowner’s warranty is to protect appliances and systems that the homeowner is already familiar with. It’s simplifies budget management and provides an affordable way to maintain, repair, or replace home equipment that is several years old and no longer covered by the manufacturers’ warranties. A homeowner’s warranty won’t cover an item with a known preexisting condition.
New home buyers, of course, aren’t so familiar with the appliances and systems they are taking over. Even after a thorough inspection, the home’s heating system or septic system could break down, through no fault of the new owners. This would be no small financial setback, especially after having spent so much money on the down payment, moving costs, and other expenses associated with buying a new home. So, unlike a homeowner’s warranty, a buyer’s warranty may cover home equipment with preexisting conditions not identified in the home inspection. This is because the new homeowners would have had no way of knowing those preexisting conditions were present at all.
Buyers of newly built homes may also be able to purchase a structural warranty from the home’s builder. This policy is usually backed by a third-party warranty company and would not be included in a standard homeowner’s warranty. A structural warranty protects anything associated with the home’s structure—foundation, load-bearing components, concrete—for up to ten years. It may also include coverage for the home’s core systems (HVAC, plumbing, and electrical).
What does a buyer’s home warranty cover?
A buyer’s home warranty can cover the same appliances and systems that a homeowner’s warranty covers. Liberty Home Guard offers a System Guard Plan that covers the functional components of the home. These include air conditioning, heating, ductwork, plumbing, electrical wiring, and the home’s water heater.
There are also many home appliances that new residents of a home can inherit. Our Appliance Guard plan can cover the following:
- Washers and dryers
- Built-in microwaves
- Garbage disposals
- Ranges, ovens, and cooktops
- Ceiling fans
- Exhaust fans
- Garage door openers
These plans can be combined in the Total Home Guard package. You can also customize your buyer’s warranty by adding coverage for additional appliances and systems that come with the home. These might include:
- Septic systems and tanks
- Sprinkler and irrigation systems
- Lighting fixtures
- Plumbing fixtures
- Central vacuum systems
- Sump pumps
- Well pumps
- Ejector pumps
- Water softeners
Liberty Home Guard is happy to work with you to cover virtually anything that comes with your new home. If you notice something missing from the list above, reach out to our team at (866)-834-5570.
How does a home warranty work for the buyer?
Though a buyer’s home warranty is its own class of policy, it operates similarly to other kinds of home warranty policies.
A premium is required to keep a warranty active. In some cases, the buyer pays this monthly or yearly cost. If the warranty was gifted by the real estate agent or seller, this cost may already be covered.
Once a plan is active, the homeowner can submit a claim if a covered appliance or system breaks down. Liberty Home Guard has streamlined this process with our online form. A small service is due when a claim is submitted.
Liberty Home Guard has partnered with qualified tradespeople across the United States. We’ll arrange for a licensed, bonded, and insured technician to make the service call. Once the technician diagnoses the problem, he or she will repair the appliance or system, if possible. If repair is not an option, the homeowner may be eligible for an appliance replacement or cash payout.
This process makes for swift, convenient service. It saves the buyer money, as the new homeowner is not responsible for the cost of the home equipment repair. Finally, it simplifies the homeowner’s budget by providing expenses that are fixed and expected.
Protect Your New Investment With Liberty Home Guard
A new home is a major life milestone. Closing on a house is a source of joy and excitement, but it’s not without its own stress and anxiety. We understand that costly and unexpected home repair soon after moving in is a huge blow.
A buyer’s warranty can provide some financial protection and welcome peace of mind just when you need it most. If you’re actively looking to buy a new home or recently closed on one, reach out to our team to explore some warranty options that make sense for your needs and budget. You can request a quote through our website. You can also call us at (866)-834-5570.