Destin Real Estate

What is a Sellers 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.  Its 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.  Wouldnt 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

Heres 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 (thats 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 builders 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 builders 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.

SELLERS COVERAGE

• Covered  Will provide Basic Contract Coverage during the listing and escrow period.  Sellers 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 Sellers Coverage period for repairs or replacements  of the furnace units.  Sellers Coverage is not available for multiple units.  Additional Optional Coverage is not available with Sellers 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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