Some 60 percent of litigation following residential home sales could be avoided if home sellers had purchased a home warranty plan, according to David Medley, National Account Manager for First American Home Buyers Protection Corp. Additionally, two out of three lawsuits involving real estate agents might also be prevented, since these claims involve failed mechanical systems, he added.
Home Warranty Factoids:
A home warranty company offers home warranty products to repair or replace appliances, electrical, plumbing, heating, and air conditioning systems on residential properties. If a home develops a mechanical problem during the first year of ownership, a home warranty will likely cover the cost of correcting covered problems, preventing lawsuits against the seller and/or agent.
Failure of mechanical systems must be the result of normal wear and tear, and not abuse or misuse.
Optional coverage may include pool equipment, water softening systems, and well mechanicals.