Definition of a Home Warranty

Video Transcript

"This is financial advisor Patrick Munro, talking about the definition of a home warranty. A home warranty is, basically, an outside financial instrument that will warranty the value of your home and the sanctity of the mechanicals inside of the home for a given period of time. If it is a new home it is a new home warranty, and primarily, the builder and the assets of the builder will back this warranty whereby, if your furnace goes out or your air conditioning goes out or one of the major components of the home, depending on the depth of the warranty, the builder will come out and make it right and that's that's a great service to be offered. Where the system breaks down though is that on the used home marketplace there's a lot of warranty companies out there that are offering home warranties and you have to be very, very careful about them, because when it tum comes time for a claim these these companies are, more often than not, out of state. There's toll-free numbers involved, and many people have been disappointed and found that the home warranty was of no use. This is Patrick Munro talking about the definition of a home warranty."