Home Inspection Warranties: Are They Worthless?
Yes, they are nothing more than a deceptive marketing gimmick.
1st, coverage is usually limited to 21 days or less after the real estate closing.
2nd, there are usually so many limitations and restrictions on what is covered, that it is impossible to have a scenario or situation where something is actually covered.
3rd, if someone actually has a scenario / situation where something might be covered, there is a hefty deductible to pay first.
4th, there are so many stipulations or hoops to jump through in filing a claim, that most people would not bother wasting their time pursuing a claim (this is exactly what the insurance company depends on.)
(Here is part of the limitations under one such policy.)
WHAT IS EXCLUDED UNDER THIS LIMITED STRUCTURAL WARRANTY?
1. Any item or component not specifically listed as covered.
2. All secondary or consequential damages.
3. Cosmetic repairs.
4. Items and areas listed as defective, needing further professional evaluation, not verifiable or not present on the AHWA Member Company’s home inspection report.
5. Items beneath concrete.
6. Items normally covered by regular homeowners insurance.
8. Damages caused by the lack of normal maintenance and care.
9. Water damage.
10. Any damage caused by terrorism or any natural disaster.
11. Concrete cracking or scaling. Any damage caused by subsidence/failure of supporting soils.
12. Block walls.
13. Roof repair is limited to repair of the immediate leakage area only and not to replacing the entire roof.
14. Removal and repair or replacement of walls, floors, roof or concrete to repair items.
15. Repairs and/or replacement materials will be completed in substantially the same kind of material. Improvements, upgrade of materials or modifications to the original design are not covered.
16. Interior and exterior painting and all other maintenance items are not covered.
17. Any damage caused by vermin (insects, termites, rodents, etc.), or by mold in any form.
18. Roof coverage is limited to a maximum of $2500.00, subject to the applicable deductible.
19. All other structural coverage is limited to within the home’s foundation and to a maximum of $5000.00, subject to the applicable deductible.
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