Seller's Coverage

Most home warranty companies provide FREE "Seller's Coverage" for the homeowner while the property is being marketed for sale.  Although the "free" coverage is not as extensive as the coverage provided to the buyer after close of escrow, it still gives significant coverage on many items, and can also be upgraded to cover additional items for a relatively low cost.  If the homeowner uses the coverage, they are going to pay a low co-pay to the vendor at the time of service (typically $55-75) for the covered repair.  It is important to read over the list of coverages and limits so that you understand what is and is not being covered.  One of the benefits to having the Seller's Coverage on your property during the marketing of the property is that it may reduce the chance of a claim being rejected as a "pre-existing" condition," as the original date the coverage was placed on the property is the effective date of coverage, even though the Buyer's Coverage is typically for one year starting on the date of close of escrow.  When you consider the longer marketing times we are experiencing, it's clear that having the earlier date of coverage is a benefit to both Seller and Buyer.  Even if you are not selling your property, having a home warranty can often defray the cost of unexpected repairs.  If you are purchasing a property, it may be wise to inquire as to whether there is any existing coverage on the property that may be of benefit to you.