Most people have heard of a Home Warranty as it pertains to buying a new or custom home from a home builder. The 2-10 Warranty is a popular warranty that a lot of Louisiana builders use. The first two years everything is covered, including appliances and systems – plumbing, electricity, gas, etc. After that for 10 years, all structural aspects of the home are covered – exterior covering (siding, stucco, brick), framing, windows, doors, etc. It’s a pretty good deal. Some builders will come in the first year and fix major “punchlist-type” issues just to keep a good reputation for standing by their work.
Many people did not know that it is possible to get a warranty for a resale home. There are several companies out there that offer warranties for appliances and systems such as air conditioners, dishwashers, hot water heaters, etc. These warranties can be extremely helpful for homes that are about to reach a certain age. It is almost a guarantee that not just one thing is going to start to go bad at a time. All appliances and systems installed in a home were installed at the same time, so it is inevitable that they will age and “fall apart” at about the same time. This can leave a homeowner in a financial jam that might have been avoided if they were proactive and planned in advance during the purchase of their home to get a warranty.
As a buyer, you can research the purchase of a warranty yourself. My #1 Rule of Thumb is to BE SURE to read the fine print AND the reviews of the company. Some warranty companies are very reputable and take care of their customers, and some sell warranties that cover nothing. With the Internet today, you can definitely find out this information by doing searches that include the word scam or risk with the name of the company that you are researching. Many people take to the Internet to vent their frustrations and concerns.
Also, ask your lender or even your title company if they work with any reputable warranty companies that they can recommend for the purchase of your home.