What covers a home buyers protection plan?


A home buyers protection plan will protect new homeowners in case something breaks in their new home right after they moved in. No one wants to worry about dishwasher stopped working, and there are a lot of items that could malfunction.

Whether the seller or the buyer will pay for warranty depends on the local rules. Also, often a home warranty may often be included as a bonus at closing the loan. So, if you are a buyer you may not need worry about a home buyers protection plan. Even if you have to pay for it, you are not expected to pay more than a $500 a year for it, and it will often be less, or include additional coverage.

What is covered with a home buyers protection plan?

Usually, air conditioning, indoors heating, plumbing and electrical systems will be covered; as well as dishwashers, oven and phone wiring. Home warranty plans will include coverage for different items in different states and among different companies, so you'd better collect several policies to compare price and item coverage before you sign with a home warranty provider.

What happens if something breaks and you have a home buyers coverage?

If anything stops working, you will call the warranty company and they will contact a subcontractor who will do inspection and repair of the malfunctioning items in your house. If the item cannot be repaired, the warranty company will pay for a new one if the item has been operated properly, and the buyer has not caused the break himself.

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