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When you buy a brand new home it may come with a ten year warranty. When you buy a re-sale home, you may be able to transfer the original warranty to you. The typical New HomeWarranty covers one year for systems, appliances and work- manship; and two years for mechanical; and ten years for any structural defects.
And this is a wonderful warranty to have. But many buyers expect much more. New homes do not have bumper to bumper sixty thousand mile quarantees like cars. Some home warranties are backed by the builder and in some cases the builder does not warrant the home but rather is covered by special companies that do that for him.
This builder really has nothing more than an insurance policy. And the issuers of this policy intend to cover problems that arise due to the actions of the builder and not the actions of nature. For example a structural defect, may be defined as something that causes the home to be unsafe. But you probably want to have a poorly shingled roof repaired or replaced, whether the insurance company of the builder deenms the home safe or not.
Sometimes these warranties have binding arbitration clauses that take away your right to go to court for a dispute. Also they do not cover expenses you may have for renting a home or hotel while repairs are being made.
RESALE HOME WARRANTY
Re-sale Home Warranty are sold by home service contract companies,or home protection companies or home warranty companies, or residential service companies and in Florida these are not insurance companies.
The typical Re-sale Home Warranty covers one year for systems and appliances and you ordinarily cannot buy any coverage for structural problems. Some warranties provide optional roof leak coverage. (roofs are technically structural elements but are commonly seen as system elements to stop water and rain from entering a home).
This warranty protects you against cost of unexpected repair or replacement of systems and appliances. The warranties that we have purchased do not require any cost to us. But some do require a service call charge such as thirty dollars. These warranties also offer you an element of convenience. Many companies handle claims twenty four - seven and they arrange everything. You just sit back and await the service technician to arrive.