What Does A Seller’s Home Warranty Cover?

PUBLISHED: ARL 18, 2023 • 6 MINS READ

A seller’s home warranty is similar to a general home warranty contract. As a seller, you can be confident that if any covered system or appliance fails during the closing process, you will not be required to pay for the repair. But do you know what a seller’s home warranty covers?

We have answered the question in this blog, so keep reading to learn about the potential benefits you can get with a seller’s home warranty.

What-Does-A-Sellers-Home-Warranty-Cover

What Is A Seller’s Home Warranty?

A seller’s home warranty covers the home systems and appliances and offers low-cost repair services during the listing period. With such services, sellers feel confident having extra protection for home items. Also, they can rest assured that the company will dispatch a professional to resolve the issue if anything happens. Moreover, sellers purchase these plans within 30 days of closing.

Many companies offer free listing coverage of 3-6 months under the seller’s coverage and may also provide marketing tools to help sell the home faster. Companies may allow transferring the seller’s home warranty to the buyer post-sale. However, checking the home warranty contract to understand the coverage, services, terms, and limitations is crucial.

What Is Covered Under Seller’s Home Warranty?

A seller’s warranty covers the major home systems and appliances, such as:

Electrical systems
Refrigerators
Ovens/Stoves/Microwaves
HVAC systems
Dishwashers
Water heater
Garbage disposal
Washer/Dryer
Plumbing systems

Additionally, sellers can opt for more items as optional add-ons at some extra cost, such as

Spa
Swimming Pools
Roof leaks
Stand Alone Freezer
Second Air Conditioner

Note: The coverage solely depends on the company and its offerings. We recommend you read the fine print carefully to understand the coverage.

Best Home Warranty Companies For Seller’s Home Warranty

To help you choose a suitable option, we have narrowed down a list of top-rated home warranty companies that offer a seller’s home warranty. They provide extensive coverage, 24/7 customer support, high payouts, and comparable services.

American Home Shield

Premium (Annually)

$459.80 – $829.0

Deductible

$100 or $150

Coverage Limit

Up to $15,000

Why We Picked It

American Home Shield is one of the oldest home warranty companies in the States. It offers comprehensive plans to not only homeowners but to sellers as well. Moreover, AHS has a unique online portal where sellers can manage their accounts and access service requests, billing information, and much more in one place.

Free First Month + Free Roof Coverage

Choice Home Warranty

Premium (Annually)

$560 – $660

Deductible

$85

Coverage Limit

Up to $3k / Item

Why We Picked It

Choice Home Warranty has made it to our list due to its nationwide availability and quality services. The company offers comparable coverage and has served over 1,650,000 American homes. Moreover, CHW operates 24/7 and has a network of 25,000 technicians that help with claims and fixes.

$150 off + Free roof coverage + 2 months free

Select Home Warranty

Premium (Annually)

$499 – $549

Deductible

$60 – $100

Coverage Limit

$3k / Item

Why We Picked It

Select Home Warranty is another industry leader offering considerable coverage at affordable pricing. It made it to this list since it offers frequent discounts and 2 Months of coverage when your bill annually. It can be a win-win deal for any home seller!

How Much Does A Seller’s Home Warranty Cost?

A seller’s home warranty price varies depending on the plan, coverage, extras added, location, and type of residence (single-family & multi-family homes, mobile homes, and condos/townhomes). Typically, it ranges from $459 to $829 per year but can go higher up to $2000, depending on the coverage specifics.

You will also be required to pay deductibles at the time of each service visit and the premiums. Again, the service call fee varies depending on the company selected and typically ranges from $60 to $125.

Get a free quote here and find out how much it costs in your area!

Seller’s Home Warranty Exclusions

All home warranties come with certain limitations and exclusions, including your seller’s home warranty! Check out the list below to know what your plan may not cover.

Costs Of Construction And Modifications Limitation
Cosmetic Damage
Accidental Acts Or Misue
Pre-Existing Conditions
Manufacturer’s Defect
Routine Maintenance
Commercial Use
Chimneys & Exhaust Lines

Apart from these exclusions, your home warranty will protect your home items up to a certain limit. For instance, American Home Shield will cover appliances up to $6k per term. Likewise, all home warranty companies have such coverage limitations.

Note: There may be other exclusions to your service contract. Hence, we recommend reading the fine print carefully to understand the coverage and limitations.

Do You Need A Seller’s Home Warranty?

Is it worthwhile to spend your money on a Seller’s home warranty? Let’s find out the answers in this section.

It Helps You Successfully Market Your Property
Every seller expects a higher return on their investment. You can gain an advantage and stand out by including a seller’s home warranty in your listing.
You Can Get Assistance with Unexpected Repairs
Unforeseen systems or appliance breakdowns can hinder your profit. But, if a covered item breaks while your property is under a seller’s warranty, the provider can help you find a skilled technician and cover the cost of the necessary fixes.
Hence, Closing Is Made Simpler
According to the National Home Warranty Association, homes with a warranty typically sell 50% quicker than those without. Negotiations can also be simplified as you may toss the seller’s warranty for free to the buyer to ensure that issues will be taken care of by you.

How To Get A Seller’s Home Warranty

With the market flooded with home warranty companies, it can be challenging to choose the perfect option. However, we’ve got you covered. Here are the steps to choosing a good seller’s warranty plan. Take a look.

Opt for a home inspection
A home inspection is a crucial step in purchasing a home warranty. It aids in determining the house’s coverage requirements. In this manner, you can be assured that a home warranty will cover those components.
Explore home warranty plans
Check out the home warranty providers. You can seek advice from friends, real estate brokers, and other sellers by reading reviews online.
Ask For Free Quotes
It is advised to get quotes from reputable home warranty providers and carefully read the sample service contract before choosing a plan.
Compare Plans
In the end, compare the companies you’ve shortlisted, their plans, and their prices to determine which is best for you.

Note: You can buy a seller’s home warranty either through a real estate agent or through the company’s website.

FREQUENTLY ASKED QUESTIONS (FAQs)

What does it mean when the seller provides a home warranty?

Sellers often provide home warranties for free with the house. These warranties cover the repair and replacement costs of the items included in the plan.

Are home warranties a selling expense?

Home warranty plans can either be a selling or buying expense. Mostly, home sellers offer to pay for the home warranty to incentivize buyers, but they don’t need to do so. Find out more regarding this in our comprehensive guide – Who Pays For A Home Warranty?

How long does the warranty last on the house?

Generally, a home warranty plan lasts a year, after which customers can opt for a renewal. However, some companies offer coverage for 13 or 14 months. You can read more about home warranty timelines in our comprehensive guide.