Home Warranty: What is it good for?

Home Warranties are typically purchased by the seller for the buyer through escrow. When you close escrow on your new home, you will receive a certificate in the mail with information on what it covers.

The seller generally pays for this warranty (here in North County San Diego) as a way to provide protection for the seller and the buyer if anything goes wrong with the home or some of the things inside once escrow is closed. So, when you are buying or selling your next home, consider this as a small expense (if you are the seller) as a way to avoid a larger expense later on. This is similar to purchasing an extended warranty on a used or new car. Not everything is covered, of course, but most of the time, the item is covered. You are able to renew your home warranty as well. Generally, this means you will still be responsible for a small “service” or “copay” fee if you need a repair, but will be spared the expense of the labor/service hours. This is the difference between the appliance warranty and the home warranty policy (always check your own warranties…these are just general guidelines).

Some of the things home warranties cover for home buyers are: (items are specific to the policy, so make sure you check yours…these are examples from http://www.OHRP.com)

  • Limited Pest Control Coverage (ants, spiders, silverfish, etc.)
  • Plumbing: drain lines, pipes, toilet tanks, water heaters, garbage disposals, angle stops, bathtub motors, etc.
  • Electrical: light switches, outlets, breakers, ceiling fans, attic fans, etc.
  • Central Vacuum Coverage
  • Dishwasher, Trash Compactor, Exhaust Fan, Cooktop, Range, Built-in Microwave oven

Cost of a Home Warranty ranges from $250 to $450 in general, depending on the level of protection and the size of the home. The prices are not individualized, but range with the company or package chosen. An example of a home warranty can be found at http://www.orhp.com/index.cfm?go=homeowners.viewPlanState&state=California.

I recommend to each and every seller that they purchase one of these for their home buyer. When selling your home, there are so many things to consider, this one…hands down, is necessary.

Call me anytime if you have questions:

Cristine Clark, Realtor

760-519-8723 cell

SellingHomes (at) CristineClark.com


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