Can you buy a home warranty after closing?

A sign that says "For Sale - Sold" in front of a home


You have purchased your dream home, and now you are eager to close. You have paid the closing costs and obtained the insurance, the furniture and the service providers. But now you are wondering if you can buy a home warranty after closing to protect your appliances and systems.

First, what is the difference between a home warranty vs. home insurance? A home warranty plan supplements home insurance plans since it covers maintenance and repairs of covered appliances and home systems. A good home warranty covers or greatly discounts the cost of repair, service or replacement of your covered appliances and home systems, such as air conditioning and heating (HVAC), water heaters and plumbing. This saves on out-of-pocket expenses down the road and allows first-time buyers to enjoy their home rather than worry about what will break next.

However, it can be confusing to know when you should purchase a home warranty and if you can do so after closing. We’re here to help you out.


When can you purchase a home warranty?

In general, when you purchase a home warranty will depend on your needs. The short answer is as soon as possible. The long answer varies.

If you are currently closing on a home, then look into a home warranty now. While you can purchase a home warranty after closing, you may have the chance to lock in a lower premium rate if you purchase this warranty before closing. You can also utilize the knowledge of your real estate agent in order to get the best plan for your home. Alternatively, you may be able to negotiate with the seller to provide a home warranty as part of the transaction.

It is reasonable to think that you won’t want to purchase a home warranty until after you’ve gotten settled into your new home. After all, you’re just not sure what exactly you want to be covered or which appliances you’ll have.

You can buy a home warranty at any time, but the financial risks of not purchasing a home warranty can increase the longer you wait. If you have an older home that is in need of more repairs, then you will most likely need to prepare for these fixes sooner. Alternatively, unexpected repairs can crop up for newly built homes as well.

Therefore, there is a point where it is too late to purchase a warranty. This doesn’t mean that you can’t purchase a warranty, but if you end up spending thousands of dollars to fix your washing machine, then that is already thousands of dollars you could have saved.

Without a home warranty, you may accrue out-of-pocket expenses. It is more beneficial to invest in a home warranty as soon as possible.


What you need before you buy a home warranty

There are a few things you’ll need to get in order before you purchase your warranty. However, this process is similar to obtaining homeowners insurance.

Prior to purchasing a home warranty plan, you will need to contact a warranty company like Cinch and qet a home warranty quote.

The company you decide to work with will need personal and home information for the warranty plan, including your address, type and age of your home and details about the appliances and systems in your home. This will provide the home warranty company with the information necessary to return a quote to you. Be sure to read about the coverage and ask questions to get the knowledge necessary to purchase the best home warranty for your needs.

Once you have agreed to the quoted amount, arranged for payment and signed the contract, you will then have home warranty coverage for the items chosen under the contract, like your appliances, plumbing or heating or air conditioning systems. Note that most home warranty companies have a 30-day wait period before coverage begins.

Filing a claim on a warranty is similar to insurance policies. When you have an appliance under your warranty in need of repair, file a claim, determine and pay the set service fee and then a qualified local technician will assess your appliance repairs.


Related Article: How to Buy A Home Warranty That Fits Your Needs


What affects how long the waiting period is for a home warranty?

The waiting period for a home warranty varies among home warranty companies. You will have a chance to review the terms of your contract, where the coverage period will be stated. Some companies have a 30-day wait period while your payment is secured, and then the plan is in force. Your warranty contract will state the period of waiting, and it may be more or less time.

Similar to a home insurance policy, home warranty companies do not cover any pre-existing damage or broken major appliances.


How to benefit from a home warranty (whether your purchase before or after closing)

Before you sign on, ask yourself and the company you go with this important question:

Does my home warranty plan cover replacement?

Most home protection plans will only cover normal wear and tear, so it’s important to invest in a home warranty plan that covers replacement costs to make sure your home warranty is worth it. Make sure to get the most out of your coverage.

Many first-time home buyers may be shocked to learn the amount of money required to own a home. On top of many of the hidden fees of home buying, securing a home protection plan prior to move-in may ease a bit of the financial burden when your appliances need repairs. Whatever your reasoning, whether you buy a home warranty plan before or after closing,, you are choosing home and life protection.



It can be confusing to know when you should purchase a home warranty when buying a home. We're here to help. Visit our site to learn more.