Why A Home Protection Policy Should Be A Part Of Your Sale:
In the re-sale market a home warranty/protection policy is basically an insurance policy on many of the physical components of your home. It helps to insure the functionality of mechanical, electrical, plumbing parts and systems of a home.
How does it work? While each company operates a little differently, there are some basics that do apply. Each has a basic plan of coverage for routine items. In addition, they offer optional coverage for air conditioning, pools and spas.
Depending on the company, when service is needed, the policy holder may call the warranty company, provide their policy number and explain the problem. An outside service company will call and arrange for service. The buyer normally pays a service-call fee for each event.
Policy payment. Payment for most is not due until escrow closes. At that time, the buyer receives a copy of the policy coverage. Most policies are in effect for one-year from escrow closing.