A house warranty is a contract that covers repairs and replacement services for the homeowner for a set length of time. First American home warranty requires a home buyer to follow a maintenance program validated by periodic inspections beginning on the date of the contract. It is comparable to a home insurance policy covering the home and its contents from theft or damage.
It is comparable to a home insurance policy covering the home and its contents from theft or damage. A house warranty in the United States does not explicitly convey a legal warranty. It is, rather, a home service contract that covers the bulk of a house’s components, including the expenses of replacing and repairing household items and equipment.
The acquisition of a home warranty can help to reduce the time restrictions and high expenses of servicing a house prior to its purchase. A house warranty plan, in essence, covers a home’s infrastructure, such as electrical installation, as well as some equipment, such as water heater or fridge repairs. A homeowner should carefully review the coverage and exclusions of a home warranty plan. Some plan circumstances may necessitate extra premiums to be charged in the work plan.
Home Insurance vs. Home Warranty
In terms of obligations, deductible premiums, and claims, a house warranty, and a home insurance plan are very similar. Nonetheless, the two types of warranties provide distinct services.
A house warranty covers the maintenance and repair of malfunctions caused by regular wear and tear. Home insurance, on the contrary, covers losses or destruction to the property itself that a variety of natural calamities may cause.
Can home warranty policies be transferred?
It is up to the warranty company whether you can transfer your home warranty insurance. While some businesses will allow you to move your plan, others may not allow you to do so. Read your service contract to see if you can transfer your policy. Also, check out if your home warranty policy covers interstate transfers (in case you are transferring out of state).
Factors to consider when transferring the policy
When deciding whether to transfer your First American home warranty package, there are various factors to consider. They are as follows:
- The reason for shifting the policy must be explained to the home warranty company. It will assist the company in expediting the process and ensuring that the new owner is not inconvenienced.
- You may be required to pay a transfer fee to the home warranty company at times. Check with the company to see if you need to pay a fee.
- If you want your policy transferred to your new address, contact the company’s customer service team and provide them with all of your new information.
- If you are relocating to a new state and want to keep your current policy, find out if the provider provides services in the new location.
- Homeowners who are selling their house must determine whether the new owners want home warranty coverage. You can cancel your policy if the new homeowner does not want coverage.
- Contact the company’s customer service agent to see if all of your covered devices have been migrated to your new home.
It is not as tough as it may appear to transfer your coverage. All you have to do now is contact customer service for more assistance. You can also contact customer service representatives if you have any problems while using your warranty.