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home_warranty_umbrella_houseAs home prices begin to rebound – as much as 9.7 percent this year by some estimates – more home sellers are purchasing extended home warranties (also called service contracts) to give themselves a competitive edge.

“Securing your home with an extended warranty is a great way to set yourself apart from other sellers,” says Tim Meenan, Executive Director of the Service Contract Industry Council. “Buyers seek out homes that are covered by an extended warranty because it can potentially save them thousands of dollars in post-sale home repairs.”

A typical home warranty is a one-year contract that protects a homebuyer or current homeowner against the cost of unexpected repairs or replacement of major systems and appliances that breakdown due to normal usage or defects in materials or workmanship. Home warranties can be purchased at any time from realtors, builders and independent providers.

Home warranties provide a measure of financial control if a homeowner is confronted with unpredictable circumstances. Investing in a home warranty can:

Save money and protect a homeowner’s investment. Warranties provide peace of mind because they are designed to protect against expensive, unforeseen repair bills. So, rather than having to make a significant outlay of cash when a costly appliance breaks down, the homeowner pays only a standard deductible per service call on covered components.

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