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Home Buyers Warranty

By: Mike Thomas

One important consideration for buying a home concerns the decision of whether to purchase a Home Buyers Warranty or not. This type of warranty, which provides coverage in case an appliance or major system of the home malfunctions, can bring peace of mind to a home buyer. Buyers home warranty plans vary by cost and the particulars of their coverage, but most share several common characteristics.

How do You Benefit?

If you are a new homeowner, the breakdown of a major appliance, particularly in a recently purchased home, can take an emotional toll.  After you’ve closed on your home, this is the last thing you’d want to happen. Notwithstanding, the costs of replacing your appliance if it is irreparable are high and can cause a huge dent in your quality of life. A new refrigerator, for instance, may cost upwards of a thousand dollars. A home buyers warranty can help ease this emotional distress. It differs from homeowners insurance in that it covers important items within the home rather than the house itself. For example, it covers significant systems and appliances within the home such as air conditioning, dishwashers, furnaces, ceiling fans and inside plumbing and wiring.

Your warranty adds another layer of protection to a traditional homebuilder warranty. Builder warranties usually cover the workmanship of a new home for a maximum of two years and the home's major structural systems for a maximum of 10 years.

If you are considering the possibility of purchasing a home buyers warranty, research the benefits offered by various providers. In some areas, the seller of the home may offer to pay this amount for up to a year.

It’s important to also note that some company's plans are more comprehensive than others. The quality of the company's customer service is another consideration. American Home Shield (AHS), a leader in the home protection plan industry, has earned praise as one of the most reliable providers in the field.

Protect yourself from experiencing a major financial blow without a buyer’s home warranty. AHS provides plan options that are flexible enough to meet every budget and household needs. Explore your plan options today to avoid high repair costs tomorrow.


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†Average repair and replacement costs as reported in a nationwide survey: A Study of Homeowners Appliance and Home System Service Experiences Decision Analyst (2011) and reprinted with their written permission.

Home protection plans are subject to exclusions and limitations including repairs or replacements of covered home system components and appliances. See contract for details.