Homeowner WarrantiesJanuary 22, 2008
Many homeowners presume their homeowner’s warranty has comprehensive coverage only to discover there are a number of exclusions. It’s understandable to expect that a homeowner’s warranty policy would compliment the importance of the purchase, but this is not always the case. When it comes to home warranties, reading the fine print is an imperative method of protection.
New home warranties have been exposed to serious scrutiny in the past few years. As a result, many coverage loopholes and inadequacies have been identified. A ten-year warranty loses much of its magnitude after the first year, and a rapid decline of coverage usually occurs over the life of the warranty. Exclusions abound and actual coverage may be extremely limited. In addition, many warranties are peppered with unrealistic maintenance clauses that will invalidate the warranty if compliance is not strictly followed. Now more than ever, it is essential for homeowners to really understand every implication of warranty coverage before they purchase a home. Be sure to solicit the services of an independent inspector before you complete the purchase of the home. Protect yourself and your investment by carefully considering all aspects of coverage.