Home Warranty Insurance Helps Both Seller And Buyers

Home warranty insurance is there to help the seller and it also provides useful insurance to the buyer as well. Thus, it should not surprise anyone to learn that home warranty insurance is mandatory though it also has become whittled down in many states because of certain consumer protection measures.

The Same As Builder's Warranty Insurance

Home warranty insurance is also known by a number of other names including builder's warranty insurance, housing or home indemnity insurance though the main intention is the same which is to protect the consumer from financial loss in case the builder fails to complete the building work or cannot or does not meet with certain standards. Thus, today home warranty insurance remains a mandatory obligation and is still in place throughout the country.

However today, there are many states where the same thing is achieved through private underwritten guarantees, and this in turn has led to some of the important protection measures to have become diluted and thus has resulted in changing the true meaning of the term ‘insurance' which, in fact has made it a bit of a misnomer.

Still, home warranty insurance is required because it will help the consumer in case the builder dies or disappears or even becomes insolvent before their homes have been completed and/or defects are found that need to be fixed.

If you are looking for a good company from whom to get home warranty insurance, and then check out Blue Ribbon Home Warranty, Inc. for their home warranty insurance policies that will protect you from losses (financial) that occur because of the builder's failure to set right or even compensate you for defective as well as incomplete residential building works. In fact, this kind of an insurance policy will only cover you in the event the builder dies or disappears or becomes insolvent.

Home warranty insurance is compulsory under the relevant legislations covering building of homes and is applicable in a majority of the states where builders are constructing residential homes that are valued at more than twelve thousand dollars. What's more, the builder has to take the responsibility of taking out home warranty insurance at the time when he makes a contract to build a home with the prospective homeowner.

It does not matter what the size of the home that is being built is and it is also normal to pay the same premium regardless of the size of the home, though the protection is beneficial to you because it puts less stress when it comes to getting protection against costs of repairs to mechanical systems that may become necessary because of flaws in building work done by the builder. Thus, with home warranty insurance, you are covered against the costly expenses of home repairs and it will give you peace of mind and ensure that you get the home that you have paid for.