Real Estate Agent Warranty FAQ

Home warranties are frequently included in real estate transactions to provide peace of mind for both buyers and sellers. In fact, research cited by Forbes found that homes sold with a home warranty sold for approximately 0.91% more, spent 16.14% fewer days on the market, and closed at 96.7% of the listing price compared to 96.1% for homes without a warranty. Additionally, a recent Bankrate survey found that 45% of homeowners have at least one regret about buying their home, with unexpected maintenance and hidden repair costs being the most commonly cited concern.

This Real Estate Agent Warranty FAQ answers the most common questions real estate professionals have about Home Membership’s real estate warranty plans, coverage options, claims process, and warranty submissions, helping agents better serve their clients throughout the transaction.

What is a HomeMembership real estate warranty?

A Home Membership real estate warranty is a home warranty plan designed specifically for real estate transactions. It helps protect buyers and sellers from unexpected repair costs due to normal wear-and-tear breakdowns of covered systems and appliances.

When does buyer coverage begin?

Buyer coverage begins on the closing date of the home purchase. Unlike direct consumer plans, buyer real estate plans receive full coverage limits immediately and are not subject to reduced first-month reimbursement limits.

Does HomeMembership require a waiting period for real estate plans?

No. HomeMembership real estate plans do not have a waiting period. Coverage begins on the effective date established by the transaction.

Is a home inspection required?

Yes. Buyer real estate plans require a recent home inspection completed within 60 days of closing. The inspection helps establish the condition of covered systems and appliances before coverage begins.

Are pre-existing conditions covered?

No. Items identified during inspections, known defects, or conditions that existed before coverage started are not covered. If an issue was documented during the inspection process, it must be repaired before closing and proper documentation retained.

How does seller coverage work?

Seller coverage is designed to protect the homeowner while the property is listed for sale. Coverage is available during the listing period, up to 180 days or until the property closes or the listing is terminated. Seller plans provide protection against covered breakdowns caused by normal wear and tear during the listing period.

What is covered under a HomeMembership plan?

Coverage varies by plan, but commonly covered systems and appliances may include:

• Heating and air conditioning systems
• Plumbing systems
• Water heaters
• Electrical systems
• Refrigerators
• Ovens and ranges
• Dishwashers
• Garbage disposals
• Washers and dryers

Agents should encourage clients to review their coverage chart for specific limits and exclusions.

How is HomeMembership different from traditional home warranty companies?

HomeMembership uses a reimbursement-based model. Homeowners are not required to use a service network. Instead, members can hire their preferred licensed contractor, pay for the repair, and submit documentation for reimbursement according to plan limits and terms.

Can homeowners choose their own contractor?

Yes. One of HomeMembership’s most popular features is open contractor choice. Homeowners may hire any properly licensed contractor without being limited to a warranty company’s service network.

How are claims submitted?

The homeowner should:

1. Confirm the repair is covered.
2. Hire a licensed contractor.
3. Pay for the repair.
4. Obtain a detailed paid invoice.
5. Submit the required documentation through HomeMembership’s claim portal.

What documentation is required for claims?

Claims generally require:

• An itemized paid invoice
• Contractor business information
• Contractor license number
• Diagnosis of the failed component
• Labor and parts breakdown
• Proof of payment

Certain larger claims, such as HVAC repairs over specified amounts, may require photos and additional documentation.

Is there a deductible?

Yes. Approved claims are subject to a deductible per claim. The deductible is deducted from the reimbursement amount.

What are common reasons claims are denied?

The most common reasons include:

• The item is not covered by the plan.
• The condition existed before coverage began.
• Required documentation is missing.
• The repair was performed by an unlicensed contractor.
• The claim was submitted after the allowable filing period.
• The issue falls under a listed exclusion.

Can agents submit a warranty after closing?

Yes. Real estate professionals can submit a warranty after closing through HomeMembership’s Real Estate Professional program. Once submitted, the appropriate parties receive confirmation and documentation electronically.

Can coverage be transferred if the home is sold?

Yes. HomeMembership allows warranty transfers to a new homeowner for an administrative transfer fee, subject to program requirements.

What should agents tell buyers about home warranties?

Agents should explain that a home warranty is intended to help with covered mechanical breakdowns resulting from normal wear and tear. It is not homeowners insurance and does not cover pre-existing conditions, cosmetic issues, secondary damage, or items excluded by the contract.

Why do many agents include a home warranty in a transaction?

A home warranty can provide additional confidence during the home buying process, help reduce concerns about unexpected repair expenses after closing, and create a smoother transaction experience for both buyers and sellers.

Where can agents learn more?

Agents can review current plan options, coverage details, and real estate submissions directly through HomeMembership’s Real Estate Professional resources and official documentation.

This Real Estate Agent Warranty FAQ is designed to help real estate professionals better understand how Home Membership’s warranty plans work before, during, and after a transaction. By knowing the coverage options, claims process, and key program requirements, agents can confidently answer client questions and provide additional value throughout the home-buying and selling journey. For the most current plan details and coverage information, always refer to Home Membership’s official warranty documentation and resources.