Home Warranties

Home Service Contracts

Information About Home Service Contracts

If you are currently buying or selling a home and are interested in a home warranty, please have your real estate agent order it for you.

What Is a Home Service Contract?

A residential service contract company or home warranty company offers contracts to maintain, repair, or replace all or any part of appliances, structural components, electrical, plumbing, heating, or air conditioning systems of residential property. A residential service contract traditionally offers a home warranty to the buyer or seller of an existing home in conjunction with the sale or purchase of the property (usually for a term of one year).  Residential service contracts protect homeowners against the cost of unexpected covered repairs or replacements on their major systems and appliances that break down due to normal wear and tear.

There is typically an annual cost for the plan coverage, and then a fixed "trade fee" charged for each covered service visit.

Buyers and Sellers Coverage Available

Buyers coverage on residential service contracts are typically a one year agreement that protects the costs of unexpected repairs or replacement of major systems and appliances that break down due to normal usage. Most plans and companies offer renewal options for subsequent years.

Coverage is also available to home Sellers during the listing and escow period.  There are several benefits to Sellers coverage.  First of all, it improves the marketability to potential buyers who may feel comfortable in knowing that should an issue arise during inspections, there is a strong liklihood that the issue can be resolved by the Seller and the Buyer will not possibly need to take on unresolved repairs.  Furthermore, the seller has peace of mind regarding potential costs and expenses against unforseen covered breakdowns that could possibly delay the close of sale.

Please note that the items and extent of coverage can vary between the Seller and Buyer coverages of any specific plan so be sure to review the plans in details as they pertain to you.  Usually Sellers are only eligible for base level plans which would not include optional enhanced coverages.

Choosing A Provider

The base and optional programs vary from provider to provider. I suggest that my clients carefully review the base programs along with each program upgrade and specific coverage's and costs of plans and select the one that best suits your particular home and situation. If you have additional questions on particular plans we can put you in touch with representatives from the appropriate companies.

Home Service Contract Providers

Below is a list of links to some of the home warranty providers. This is offered as a service to my Buyers and Sellers and is only a partial list. Clients are encouraged to look online, in the phone book, or ask friends for references for additional options. You should thoroughly review the available plans and then make an independent decision on which service provider to use. By receiving and/or using this list, Buyer or Seller acknowledges that neither RE/MAX Associates Northeast or Nancy David, Realtor are responsible for the actions or performance of these service providers.

Texas Home Service Contract Association

This site has links to to some of their member warranty companies that you can shop. 

Texas Department of Licensing & Regulation

This site is a list of Residential Service Companies that are providers in Texas.