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Home Resale Warranties
Home resale warranties are gaining in popularity with both home sellers and buyers. Sellers are finding that purchasing a home warranty is a good way to attract buyers and sell homes faster. Buyers are finding that a warranty can save them money and provide them peace of mind.

Sometimes there is confusion on what is and isn't covered. Coverage includes repair or replacement of a home's major systems and appliances that break down due to normal wear and tear during the term of the warranty. Items that are not typically covered include:

* Pre-existing conditions; something that existed before the start date of coverage.

* Work performed without the prior approval from the Warranty Service Company.

* Items that fail due to something other than normal wear and tear.

* Consequential damages that are covered by the homeowner's property insurance.

* Replacements when a repair is available.

* Items improperly installed, modified or damaged as the result of an unauthorized repair or remodeling attempt.

Warranties on previously owned homes are not intended to be a substitute for home inspection. The BBB suggests buyers of homes first get a detailed, impartial inspection by a qualified home inspector. Also, hire a licensed HVAC contractor to inspect the heating and air conditioning units prior to purchase. Inspections should alert you to any pre-existing conditions. Repairs recommended should be completed before the close of escrow.

Finally, read the contract thoroughly. Make sure you understand what is or isn't covered. Ignore any verbal promises; if it isn't in writing, it doesn't exist.
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