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Are Warranties Transferable When Buying a New Home?

Are Warranties Transferable When Buying a New Home?

Selling a home can be challenging, especially if you are inexperienced in real estate. To make the process easier, you should make the home stand out in the market to encourage a swift and successful close. In addition to fixing any issues with the house, you need to take out a home warranty. This works like home insurance, but it only covers the structure of the building. That means you will get compensation if you discover any structural issues in the property. It is worth noting that mortgage lenders will always require you to have a warranty before they process the home loan. This will give them some peace of mind and will also help to protect your investment. You can purchase a home warranty and transfer it to the new owner of the house. The process is quite simple and may even be done for free.

What is a Transferrable Warranty?

While the policies may differ, warranties are usually transferrable to the new owner of the property. Many owners even take out warranties on their buildings with the intention of selling the property later on. When the sale is completed, the policy will be transferred to the new owner. As a home owner, you will need to note that a warranty will not cover new structures or conversions in the property. If you have made changes to the buildings, you should take out a new policy.

Home warranties typically last for ten years. After this period, the warranty provider will not be liable for any defects in the property. For the first two years, defects will be fixed by the home builder. You will be required to carry out regular maintenance on the property. Here is a home maintenance checklist which you might find useful. You should consider working with a professional to ensure that you maintain the home in good condition. If structural damage results from poor maintenance, the company may fail to cover the defects.

It is important to understand what is covered with these plans. The first two years are known as the defects insurance period, and the builder will be obligated to fix any issues in the house.

For example, they would be liable for faulty pipes or windows that aren’t closing properly.

The next 3 to ten years are known as the structural insurance period. In this period, the insurance company will be responsible for major issues with the structure of the house.

For example, they would have to fix the foundations, roofs, ceilings, and chimneys.

You should note that the company may not cover the cost of living elsewhere while repairs are being made.

There are also certain situations where you won’t be covered under these warranties, such as:

  • Damage to household appliances
  • Cracks on the walls or tiles
  • House components that have a manufacturer’s warranty
  • Damage that results from weather
  • Natural wear and tear in the house
  • Theft or loss of items in the house

The plan may only cover condensation and dampness if these issues resulted from the builder failing to meet the standards of the insurance company.

As mentioned earlier, you have to maintain the property adequately. Otherwise, the insurance company may fail to pay for repairs.

It is also worth noting that new build warranties aren’t meant to work as insurance plans. They will only cover issues that arise from the builder’s work.

Can a Warranty be Transferred to a New Owner?

Yes, you can transfer home warranties to new owners. You should first take the time to work out who will pay for the policy. This could be the realtor, home buyer, or yourself. You also need to get all the information on the new owner of the property. These details include their name, phone number, current address, and email address. You will then need to contact the provider of the home warranty and give them all the information they require to complete the transfer. You may have to pay a small fee for this service. Once this is completed, the transfer will be made to the new owner of the property.


When buying a home, you should consider taking out a new home warranty. This warranty can be transferred to new owners of the home. The transfer process is quite simple and may even be done for free. You should note that having a new home warranty can make it easier to sell your house.

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