Home Warranty Education

What is the difference between a Home Buyer’s Warranty and Home Owners Warranty

Written by Whitney Bennett

Learn more about home buyer warranties and homeowner warranties with this blog.

Home warranties can be purchased for any home, but that doesn’t mean that every home warranty plan is right for every home. Landmark Home Warranty offers two different types of home warranty plans – one type is for a homeowner and the other is for a home buyer. These two home warranty plans cover the same systems and appliances in a home, but have slight differences.

What is a Homeowner Warranty?

​​​​​​​Infographic that explains the differences between a home owner warranty and home buyer's warranty.

A homeowner warranty is a warranty plan for someone who already owns their home. They’re not purchasing or selling their home at this time. Usually, these warranties are perfect for homeowners who are living in a home with older systems and appliances (not new construction homes) and who are concerned about protecting their budget with a home warranty.

Landmark offers two warranty plans for homeowners who fall into this category: the Home Systems Plan, which covers the main systems in a home, and the Total Protection Plan, which covers the main systems and appliances in the home.

For a frugal homeowner, a home warranty makes sense. Home’s systems and appliances don’t last forever, and if a homeowner has lived in a home for a few years, those systems and appliances have already started to wear out. A homeowner warranty helps to protect the homeowner’s budget from expensive repairs when those systems and appliances do end up failing from normal wear and tear.

Different homeowners purchase homeowner and home buyer warranty plans.

Homeowner warranties also offer more customization options for the homeowner. If the homeowner only has one or two appliances they’d like covered under their plan, they can choose the Home Systems Plan and add on coverage just for those appliances. This lets the homeowner save money while narrowing down the coverage they need.

What is a Home Buyer Warranty?

A home buyer warranty is a warranty plan for someone who is actively buying or selling a home. This plan can be purchased until 30 days after closing on a home. A home buyer warranty is more focused on protecting systems and appliances in a home that have (hopefully) been repaired or replaced prior to closing. They also protect the buyer from misuse from the seller, although the warranty plans don’t cover for items mentioned as problematic in the home inspection. It is assumed that the buyer and seller will come to an agreement before closing that the seller will fix the problem or lower the price on the home so the buyer can fix it on their own dime.

For a home buyer, a warranty plan makes sense. When you’re investing in something as large as a home, you want to make sure that your investment is protected! It’s hard to know how much wear and tear the systems and appliances have had before you moved into the home, so it’s always a good idea to be prepared for the worst. Not to mention, replacing large systems and appliances so close to making such a large purchase can be a huge financial hit for most homeowners.

Landmark Home Warranty also offers new construction home buyer plans, which act as a protection if something is faulty within the first two years after closing.

Home buyer warranties come in four different plan types, with each plan adding additional coverage. This way a home buyer can select the right protection for the home they are purchasing.

What are the Differences Between a Home Buyer Warranty and a Homeowner Warranty?

The two main differences with homeowner warranties and home buyer warranties.

The main differences between the home buyer warranties and the home owner warranties are price and plan type.

Price

Home buyer warranties are a bit less expensive than homeowner warranties. This is because a home that is on the market has hopefully had most of the major systems and appliances repaired before closing (or the buyer will repair them after closing after negotiating with the seller for a lower price). Because of this, Landmark offers a smaller price as there are usually fewer major problems within the home and, therefore, the homeowner should pay less in ensuring protection against those.

Homeowner warranties are more expensive because most homeowners purchase them on homes that do have systems and appliances that are due to fail from normal wear and tear, and thus need to pay a bit more in premiums.

Plans

Both home buyer warranties and homeowner warranties both cover the same things: a home’s plumbing, electrical, heating, and cooling systems, and a home’s refrigerator, oven, dishwasher, washer and dryer, microwave and more. The difference between the two is how that coverage is broken up. With a homeowner warranty, homeowners can choose between protecting their home’s systems, their home’s systems and appliances, or a combination of both. With a home buyer, they can choose between different combinations of coverage for a home’s systems and appliances.

To compare plans and see what level of coverage works best for you and your home, go to www.landmarkhw.com/home-warranty-plans

Ask yourself these five questions to find out if you should buy a home warranty! Get the most out of your home warranty by researching, understanding, and complying with your companies policies! Understanding your home warranty is vital to being able to use it to benefit your systems and appliances.

Home Warranty Education

Everything you need to know about what a home warranty is, how it works and what it covers. Real estate professionals: use these articles to help your clients!

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