Homeowners warranty insurance is basically a compulsory type of insurance coverage available in different parts of the world and it is also designed to offer protection against different errors caused by the builders while constructing homes. So, anyone, who is purchasing a new home or selling the existing one should have a home warranty insurance policy. In some cases, this type of insurance policy is also acquired by the contractor or the builder for the benefit of the homeowner while offering them vital protection against different things like non-structural or structural benefits, failure to finish the work on time and also the breaches of statutory warranties.
Things that homeowners warranty insurance mainly covers:
On the basis of the coverage selected, the home warranty insurance may cover the following things:
- Building works, which have not commenced in reality? In this case, the insurer should reimburse the deposit amount, which has been paid to the building company or the builder under the contract.
- In case the builder is defaulted and if your contract with the builder gets terminated because of this before finishing the work. In this case, you will be entitled to compensate to finish the project work.
- In case of defective work. Here you would get covered for the additional costs needed as the result of defective work done.
Different types of coverage offered in homeowners warranty insurance:
- Damage to the house coverage: This type of coverage mainly covers any damage to the home. Here the homeowner will get the face amount of the policy in case the home gets completely destroyed.
- Damage to the other structures coverage: This type of coverage covers damage to other buildings or structures like any work shed, fencing or detached garage.
- Damage to the personal property: This type of coverage mainly covers the loss or damage of any personal property. The personal properties include: household contents and other personal important belongings that are owned and used by the homeowner and his/her family.
- Damage to additional living: This type of coverage offers additional living expenses while incurred. It means, this type of policy offers coverage to all the necessary living expenses up to a certain limit. Or this type of coverage also covers the normal standard of living while the homeowner can’t occupy the home because of any covered loss.
- Damage to the comprehensive personal liability: This coverage mainly protects the homeowner arising from any accident or so on the property that he/she rents or owns.