Guide to Offering a Home Warranty When Selling a House

The first thing you want to know if that a homeowner’s insurance policy and a home warranty are two different things. It’s important to know the difference so that you can make sure you are presenting the information in the best way to buyers. A home warranty typically covers the first year that the home is owned by the new buyer and covers major systems and appliances that need repair or replacement. A home warranty may cover things like water heaters, dishwashers, garbage disposals, and air conditioning systems. [su_note]In contrast, homeowner’s insurance protects the home against damage that is caused by crime, weather related issues, fires, or accidents. It’s important to note that not all weather related incidents are covered, however, so a homeowner may want to purchase additional coverage for things like floods.[/su_note] While homeowner’s insurance is usually mandatory for homeowners with a home mortgage loan, a home warranty is not a requirement in most situations. For this reason, adding a home warranty as an incentive for those who are thinking about purchasing your property can be a great selling point because it offers the new buyer some peace of mind in the event that things go wrong in that first year.