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What is a Seller’s Home Warranty?
A Home Warranty is different than your Home Owners Insurance.
The seller generally will give the new owner this warranty in good faith.
No one knows what will happen the first year and in selling the home the seller feels obligated.
Your home warranty contract will be effective on the date of: time of inspection, walk-through, or disclosed on the Real Estate Transfer Disclosure Statement and receipt of payment.
Sellers pay for a basic warranty ($255 to $359)
to cover any system or appliance malfunction due to normal usage, and was properly installed and operating safely and normally at the effective date of Sales Contract
.
You can upgrade and cover many other items
(see example below).
The additional cost will be added to your closing settlement statement as additional funds needed.
It’s not uncommon to have the seller credit you for the basic warranty so you can shop for a better price and coverage with someone else.
The EXAMPLE below will help you understand costs, coverage, not covered items and fees out-of-pocket.
Wouldn’t it better to only spend a tradesman fee for services versus $500 or more for repairs?
Effective date: date of closing or payment
Expiration date: 1 year
Coverage
Basic Home Warranty
$255.00
Wall Air Conditioners x 1
$
55.00
Deluxe Option
$
35.00
Pool/Spa Equipment
$125.00
Washer/Dryer/Refrigerator
$125.00
Warranty Total
$595.00
The Home Warranty contract covers only systems specifically mentioned as being covered and which are located within the perimeter of the main foundation and garage
Here’s how it works!
When you require service - telephone their Service Department at an “800 number”.
Telephone service is available 24 hours a day.
When you call with a service problem, Warranty Company will contact a tradesperson of their choice who, during normal working hours, will contact you directly to schedule an appointment.
On weekends or holidays, the tradesperson will contact you within 48 hours.
Additional efforts are made in situations deemed by Warranty Company to be an emergency.
Notice of any malfunction must be given to Warranty Company prior to the expiration date of this Contract.
Home Warranty makes service simple!
They have the sole right to provide Service.
They will not reimburse for services performed without its prior approval.
You can help speed service by making your home available during normal business hours (8 a.m – 5 p.m. Monday through Friday) and by having the following information available when you call:
the brand, size and model number of the cover items; a description of the problem; your address and your telephone numbers
Trade Call Fee.
For each Trade Call placed, a $40 Trade Call Fee is required to be paid (one fee per call per tradesperson). This trade Call Fee is due when service is performed and must be paid upon receipt of invoice.
Suggest paying this by “check” and have tradesperson mark invoice paid and check number (paper trail and keeps everyone honest).
Warranty Company will not respond to a new request for service under their Contract until all previously incurred fees are paid (that’s why you want to pay by check).
All service work is guaranteed for 30 days, parts for 90 days.
If during that 30 day period, precisely the same problem is experienced, no additional fee will be incurred.
S A M P L E
BASIC CONTRACT COVERAGE
Note:
“Not covered”
items with underscore
designate this item will be in your “deluxe option” package and will be covered for service
Heating System (Primary)
- Covered:
All essential working parts and components which affect the heating operation of the gas or
| N: center" align=center>Wall Air Conditioners x 1
$
55.00
Deluxe Option
$
35.00
Pool/Spa Equipment
$125.00
Washer/Dryer/Refrigerator
$125.00
Warranty Total
$595.00
The Home Warranty contract covers only systems specifically mentioned as being covered and which are located within the perimeter of the main foundation and garage
Here’s how it works!
When you require service - telephone their Service Department at an “800 number”.
Telephone service is available 24 hours a day.
When you call with a service problem, Warranty Company will contact a tradesperson of their choice who, during normal working hours, will contact you directly to schedule an appointment.
On weekends or holidays, the tradesperson will contact you within 48 hours.
Additional efforts are made in situations deemed by Warranty Company to be an emergency.
Notice of any malfunction must be given to Warranty Company prior to the expiration date of this Contract.
Home Warranty makes service simple!
They have the sole right to provide Service.
They will not reimburse for services performed without its prior approval.
You can help speed service by making your home available during normal business hours (8 a.m – 5 p.m. Monday through Friday) and by having the following information available when you call:
the brand, size and model number of the cover items; a description of the problem; your address and your telephone numbers
Trade Call Fee.
For each Trade Call placed, a $40 Trade Call Fee is required to be paid (one fee per call per tradesperson). This trade Call Fee is due when service is performed and must be paid upon receipt of invoice.
Suggest paying this by “check” and have tradesperson mark invoice paid and check number (paper trail and keeps everyone honest).
Warranty Company will not respond to a new request for service under their Contract until all previously incurred fees are paid (that’s why you want to pay by check).
All service work is guaranteed for 30 days, parts for 90 days.
If during that 30 day period, precisely the same problem is experienced, no additional fee will be incurred.
S A M P L E
BASIC CONTRACT COVERAGE
Note:
“Not covered”
items with underscore
designate this item will be in your “deluxe option” package and will be covered for service
Heating System (Primary)
- Covered:
All essential working parts and components which affect the heating operation of the gas or electric units including heat pumps and ductwork.
Wall thermostats replaced as needed with builder’s standard grade.
You can pay the difference if you want to upgrade (need to discuss with Warranty Company as to your wishes).
- Not Covered:
Oil burning units, maintenance, cleaning, electronic air filters, humidifiers; fireplaces and key valves, baseboard casings, collapsed, crushed or moisture damaged ductwork, registers, grills, standard air filters, heat lamps
.
Electrical System
- Covered:
Wiring, panels, breakers, fuses, switches, doorbell, and receptacles attached to main dwelling and garage, ceiling fans.
- Not Covered:
Light fixtures, alarms, intercoms, electronic controlled or low voltage relay systems; improper installation or prior repairs; missing parts.
Doorbells that are part of the intercom system.
Smoke detectors.
Telephone Wiring
- Covered:
Wiring used primarily for residential phone service located within the main foundation.
Plumbing System
1.
Plumbing Pipes
- Covered:
Will repair leaks in water, waste, vent or gas pipes (including hose bibs) except if caused by freezing.
- Not Covered:
Fixtures, showers and shower pans, bathtubs, sinks.
Gas log lighters.
Septic systems including tanks and finding and/or accessing septic tanks for pumping.
Water softeners, water discoloration, low or high water or gas pressure, adverse chemical reactions.
Collapsed or broken lines located outside the main foundation.
Noises, Leak detection/location.
Shower head, shower arms, rust. Faucets (under the Deluxe Option: faucets replaced with chrome builder’s standard grade when necessary).
2.
Water Heater
- Covered:
All essential working parts and components of gas or electric units.
- Not Covered
:
Noises, solar systems, chemical build-up, sediments
3.
Plumbing Stoppage
- Covered:
Will clear stoppages in drain, waste and vent lines which can be cleared with a standard sewer cable.
- Not Covered:
Stoppages caused by roots, or collapsed or broken lines outside the main foundation.
OPTIONAL COVERAGES
Central Air Conditioning System (Electric, Utilizing R22 Freon Only)
- Covered:
All essential working parts and components affecting the cooling operation of the unit which must provide air flow through central ductwork, including an evaporative cooler or built-in wall unit.
Multi-speed compressors replaced as needed with single speed ones.
- Not Covered:
Maintenance, cleaning, collapsed, crushed or moisture damaged ductwork, insulation.
Freon recovery or reclamation.
Pads, inaccessible line sets.
Gas air conditioning.
Water cooled or geothermal units or systems.
Pet or pest damage, noises.
Conditions of rust, condenser housing.
Filters, window units, (covered only if Deluxe Option is purchased along with the Central Air Conditioning System Option.)
Deluxe Option
- Covered:
All underlined items in the “NOT COVERED” sections of the Basic Contract Coverage, Optional Coverage and Terms of Coverage sections of the Contract.
Swimming Pool/Spa/ Whirlpool/Hot Tub Equipment
(One set of equipment, permanently installed only)
- Covered:
All above ground and accessible essential working parts and components as follows:
Pump, motor, filter, heater, timer, gaskets, blower, back flush valve, switches and relays:
pool sweep motor and above ground and accessible plumbing and electrical.
- Not Covered:
Pool sweep and related equipment; structural defects, lights, ornamental fountains, cleaning or maintenance of equipment; pool cover and related equipment; remote control switches, computerized control boards; chlorinators, ionizers.
Portable Spas.
Conditions of rust (covered only if the Deluxe Option is purchased along with the Swimming Pool/Spa/Whirlpool/Hot Tub Equipment Options.)
Washer/Dryer/Kitchen Refrigerator including built-in icemaker.
- Covered:
All working parts and components, including dryer vent.
- Not Covered:
Touch pad assembly, plastic mini tubs, soap dispenser, filter or lint screens, knobs and dials, damage to clothing, ice crushers, beverage dispensers and their respective equipment, interior thermal shells, structural components, freezers which are not an integral part of the refrigerator, food spoilage, malodorous odors, noises, or cosmetic parts.
Conditions of rust (covered only if the Deluxe Option is purchased along with the Washer/Dryer/Kitchen Refrigerator Option.
Septic Tank Plumbing
- Covered:
One time pumping of the tank only during the term of the contract, if necessary.
- Not Covered:
Tank, septic system or the cost of locating any accessing the tank for pumping or the costs of any chemical treatments.
Well Pump (Domestic, use, main dwelling only)
- Covered:
Well pump must have low water alarm or pressure drop switch to prevent pump damage due to lack of water.
- Not Covered:
All piping and electrical lines; well casing, re-drilling, holding, pressure, storage tank; cost of removal and reinstallation.
SELLER’S COVERAGE
- Covered:
Will provide Basic Contract Coverage during the listing and escrow period.
Seller’s Coverage becomes effective upon Warranty Company receipt of the application, and continues for 90 days or to the close of escrow, whichever occurs first.
- Not Covered:
Pre-existing malfunctions are not covered.
Warranty Company will pay a maximum of $500.00 during the Seller’s Coverage period for repairs or replacements
of the furnace units.
Seller’s Coverage is not available for multiple units.
Additional Optional Coverage is not available with Seller’s Coverage.
Limited Roof Coverage (Limited roof lead repairs)
- Covered:
Will repair leak causing defects in the roof structure(s) of the covered property, provided such leak causing defects are located within the perimeter of the main foundation and garage and are the result of normal wear and deterioration.
An actual water leak must occur and be report to Warranty Company, during the coverage period for coverage to apply und the contract. DURING THE COVERAGE PERIOD, WARRANTY COMPAY WILL PAY A MAXIMUM OF $1,000.00 FOR SUCH REPAIRS.
Homeowner will pay a $50.00 Trade Call Fee for each service call for roof repairs.
- Not Covered:
Failure to perform normal periodic maintenance on the roof.
Leak causing defects occurring prior to the start of the coverage period; gutters, drains; roof mounted installations including leaks around skylights and rooftop air conditions and coolers; leaks that occur in a deck or balcony when said deck or balcony serves as the roof of the structure below; missing or broken shingles or tiles; un-workmanlike construction, installation or prior repairs; persons walking or standing on the roof; storms, wind, and what are commonly known as acts of God.
Those leaks caused by installations of awnings or located at windows and/or additions to the home or garage.
Roofs beyond repair or needing a re-roof are not covered.
In the event of a roof beyond repair the policy holder can request a refund of this premium.
Suggestion:
This Warranty really works in your favor – do not make a mistake and not invest in this additional protection. It will save you a lot of money and peace of mind if something happens your first year.
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