A home warranty is an insurance contract that is inter-linked with the repair and replacement cost of your house in the event of mechanical malfunction, weathering or any other damages. Coverage of your house is determined upon the terms and condition of your specific plan. Though terms and conditions vary from one insurance company to another, the elite plan remains always the same.

Seller Home Warranty
This is a simple insurance coverage plan that is placed on a home at the time of listing. The plan is effective immediately upon receipt and acceptance of the insurance company by a seller and runs for the remaining term of the listing contract for not more than one hundred and eighty days. Duration of a seller home warranty can be extended at the discretion of the particular company. If they feel to extend, your 'seller home warranty' will get extended. This warranty can be terminated upon transfer of title or breach of contract.

If the title is transferred, the 'seller home warranty' will also be transferred. And this facility can be obtained for a term of one year till the purchase without additional fee. At the time of listing, if the seller vacates the property, the home must be safeguarded to protect against frost or other damage and the property must be maintained with water, electric and gas service. When all these factors are not met, insurance coverage is terminated.

Buyer Home Warranty
This insurance plan is purchased by or on behalf of a homebuyer, and it is effective on the date of closing for a term of one year. There are generally two types of buyer home warranties - implied warranty and extended warranty. The first type of insurance policy includes material and construction. If the building is damaged by any natural calamity or anything else, the buyer of that house gets the amount from the insurance company in return. This warranty expires one year from the date of purchasing.

Home Direct Warranty
This insurance policy is available to homeowners who are not currently selling or buying a home. The plan takes some time to get executed, and it takes nearly thirty days after the company receives proper payment. The insurance plan remains in effect for a term of one year.

New Construction Warranty
This type of warranty is purchased on behalf of a homebuyer at the time of purchasing a newly constructed home. The insurance will remain in effect till the first anniversary date of buying that house. To ensure proper execution of the insurance plan, the insurance company needs to get proper payment within ten days of the handover, and the warranty remains in effect for a term of one year.