Which Homes Are Covered – And Which Ones Aren’t – Under an HMS Home Warranty?

Construction tools
There were nearly 5 million homes sold in the U.S. in 2014, according to the National Association of Realtors. That’s a lot of homebuyers, all getting settled in their new homes, figuring out what they love and what needs to be replaced – and, most importantly, planning out their future expenses and new household budget.

Home warranty plans provide a fantastic strategy to offset the costs of repairs and replacements of major systems and appliances. However, not all homes are eligible for coverage by home warranties:

  1. Seller Home Warranty – Available for the duration of a listing, until the property is sold.
  2. Buyer Conversion Warranty – Once the property is sold, Seller Home Warranties convert to a Buyer Home Warranty for one year from the day of closing..
  3. Buyer Direct Warranty – Purchased by a homebuyer upon closing.
  4. New Home Warranty – Purchased by homeowner upon completion of new construction.
  5. Open Direct Warranty – Purchased by homeowner not buying or selling the property.

Which properties are eligible for coverage?
It helps to know these five types of home warranties to understand which homes are covered under each agreement.

Typically single-family residential homes are eligible for coverage under each type of home warranty. Commercial properties and single-family homes with certain home-based businesses, including day cares, group homes and fraternity houses, are not eligible. One exception is any property housing persons with mental and physical disabilities.

The following are examples of properties that are not eligible for coverage under the HMS Home Warranty plan:

  • Non-owner-occupied multi-family units
  • Homes listed in a historical register
  • Mobile homes built more than 10 years prior to the effective date of the home warranty
  • Multi-family homes under the New Home Warranty
  • Tenant-occupied units under the Seller Home Warranty

In any owner-occupied multi-family residence, any claims in tenant-occupied units are the responsibility of the owner.

The systems and appliances in the home all have a typical life span which seems to get shorter year after year. Home warranties provide homeowners with the ability to better manage the household budget and prepare for the unexpected expenses when breakdowns occur.

Brought to you by our preferred Partner, HMS Home Warranty.  HMS is an industry leader with over 30 years of creating success for clients and providing peace of mind for customers. To learn more click www.hmsnational.com.

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