Can you buy a home warranty after closing?
Home warranty coverage can help avoid costly surprises later
While many people get a home warranty when they purchase a home, homeowners can also buy one at any point. The benefits of purchasing a home warranty (or requesting one as part of your negotiations) before closing include potential savings on the warranty cost and starting any required waiting period before you move in.
You can purchase a home warranty before or after closing on a home.
Jump to insightPurchasing before closing starts the waiting period before you move in.
Jump to insightIt’s smart to ask for a home warranty from the seller before closing.
Jump to insightWhen can you buy a home warranty?
You can purchase a home warranty at any time, although most people get one when buying a new home. Home warranties can help alleviate concerns about paying for unexpected problems that may arise during the first year in a new home. Some sellers include a home warranty as part of the negotiations before closing a home; sometimes, buyers may request one.
Buying a home warranty usually only covers problems that arise after you’ve purchased it — and many plans require a 30-day waiting period after purchase. If you’re hoping to buy a home warranty to help pay for a problem you already know about, your home warranty company probably isn’t going to cover it.
What does a home warranty cover?
Home warranties cover repair or replacement costs for certain home systems and appliances that have unexpected issues due to normal wear and tear — expenses that can be difficult to cover, especially for a new homeowner.
Most home warranties cover fundamental home systems, like plumbing, HVAC and electrical, along with standard appliances, like stoves and ovens, kitchen refrigerators, dishwashers, and built-in microwaves. Many companies offer the option to add coverage for things like roof leaks, hot tubs, pools, washers, dryers, sump pumps and water softeners.
When you make a claim under your home warranty, you’ll only need to worry about paying the service call fee, or deductible, rather than the total cost of the repair. If the repair is too extensive, the warranty company may decide to replace the item instead.
Exclusions to home warranty coverage
Home warranty coverage helps with repairs or replacement due to normal wear and tear. The company will likely deny claims for problems arising from improper maintenance or user error. Known preexisting conditions are also not covered. You can’t buy a home warranty to help with a plumbing problem you already know about — the issue must occur after you purchase the home warranty.
If the manufacturer’s warranty still covers your appliances, home warranty coverage will kick in after that warranty expires. However, coverage may also exclude certain high-end appliance brands, so verifying that your kitchen and laundry appliances are covered before you purchase a home warranty is important.
Most companies request purchasing information and appliance serial numbers as part of the claim process. If the serial number has been tampered with, or the appliance wasn’t purchased new, a claim could be denied. If you’ve tried to repair the problem before making a claim, or if you use a contractor that the home warranty company does not approve, your claim could also be denied.
Home warranties have coverage caps as well. This means the company may only pay up to a certain amount for a repair or replacement. Coverage caps can apply to each appliance or system individually.
FAQ
What does a home typically warranty cover?
Home warranties usually cover essential household appliances and systems. Some plans also cover additional items like pest control, septic systems, central vacuums, sump pumps and more.
How long after buying a house can I get a warranty?
You can get a home warranty at any time; however, many people get one when purchasing a new home. It’s a good way for new homeowners to protect themselves from paying to fix problems that arise in the first year after moving.
Does a home warranty cover existing problems?
No, a home warranty does not cover existing problems that the homeowner is already aware of. The problem or failure must occur after the warranty is purchased.
What is the difference between homeowners insurance and a home warranty?
A home warranty is distinct from homeowners insurance, providing coverage for appliance and system breakdowns that are due to wear and tear. Homeowners insurance covers the physical structure of your home and your personal belongings in the event they are lost or damaged because of an event like a fire or theft.
Why would a seller offer a home warranty?
A seller may offer a home warranty to help make their listing more attractive to buyers. Home warranties provide extra reassurance if potential buyers are hesitant about issues they fear may arise after purchase. It essentially minimizes some of the financial risk a new homeowner takes on when purchasing a home, especially if it's an older home.
How long are most home warranties?
Most home warranties last 12 months, although some can extend up to three years.
Bottom line
While many opt for a home warranty during home purchase, it's worth noting that homeowners can acquire one at any time. Securing a home warranty before closing initiates the waiting period and gives the buyer the opportunity to negotiate for the seller to pay some or all of the cost.
Whether obtained before or after closing, a home warranty can offer valuable protection against unforeseen household breakdowns, making it a wise investment for many homeowners.
