As a homeowner, you want to be sure you are fully protected by your home warranty, especially when it comes to potential pre-existing conditions. A pre-existing condition exists when any covered system or appliance is not working properly on the effective date of the home warranty plan, which in most cases is the day of closing.
Home warranty companies will not cover known pre-existing conditions for the buyer that have been identified on a home inspection report or that could have been detected by a simple visual or mechanical inspection prior to the effective date of the warranty. However, keep in mind that Old Republic Home Protection offers Seller’s Coverage, which provides coverage during the listing and escrow period for all the major systems and appliances in the home.
But what about undetectable pre-existing conditions? In most cases, if a home inspection failed to turn up a problem, or a simple mechanical or visual inspection of the system or appliance indicates it was working properly on the effective date of the Plan, Old Republic Home Protection would most likely provide service for the system or appliance. See Limits of Liability in our brochure for further clarification.
The best way to help prevent potential coverage issues is to have a thorough home inspection of the property before the close of escrow. Make sure to read the inspection report with your Realtor. This is a good time to negotiate responsibility for repairs with the home seller. Repairs should be made right away, and it is always prudent to recheck the items to make sure everything is in good working condition a few days before the closing.
When existing repair issues are resolved prior to the effective date of coverage, all of your covered systems and appliances are protected, and so is your budget!
~This article is provided courtesy of Old Republic Home Protection, a leader in the home warranty industry, providing superior service, comprehensive coverage and competitive pricing.
For more information on the value and benefits of home warranty coverage or to order a home warranty (also available for investment/rental properties and homes not going through a resale transaction), please contact local area representative Amanda Wood, serving Santa Barbara, San Luis Obispo and Kern Counties:
Old Republic Home Protection
(800) 282-7131 ext. 1210