90 DAY HOME WARRANTIES BEWARE
Some home inspectors offer a free home buyer’s 90 day home inspection warranty with every inspection. Wow! what an offer, that way if they miss things they will be covered, that is if the condition happens to fall under the warranty agreement. What is the true value of such a warranty? Lets take a closer look at a typical home buyer’s 90 day home inspection warranty.
First off the 90 day home warranty typically begins from the day of the inspection, so if you close in 30 days, you now have a 60 day warranty, if you close in 60 days, you now have a 30 day warranty etc. You may not even get completely moved in 90 days, let alone be settled in enough to find out if there are issues. Yes, these warranties can be extended but, at your expense (see bottom line).
Another item to be aware of is that typically these free 90 day home inspection warranties come with a $100.00 service fee per occurrence to be paid by the home owner, whether the issue is covered under the warranty or not, and you probably won’t find that information out until after the service person arrives. Even if you cancel the service call and the service person is already in route, you still may have to pay the $100.00 service fee.
#1 It limits there liability. That is actually a good reason coming from a home inspectors point of view.
#2 It helps ensue confidence in the client and Realtor, that if anything were to go wrong with the home after the inspection, it will be covered (provided it falls under the warranty agreement).
#3 A lot of home inspection companies receive the warranty packages for free, by providing home alarm companies with your contact information (leads) and a free home alarm evaluation, which typically alarm companies provide anyway.
The Bottom Line, Home warranties can be very beneficial but, are typically a minimum of 1 year with lower deductibles or service fees than the 90 day inspection warranties, and certainly should not be the basis on which you choose a home inspection company.
It is very important to read your home warranty terms (agreement) and know what you are paying for, in terms of what is and is not covered, package fees and any additional fees that you may have to pay when service is provided, such as deductibles or service fees. The bottom line as always buyer beware.©