Can You Transfer Your Home Warranty Policy When You Move?
Purchasing a home warranty policy for your home helps you protect your major appliances and systems. It is basically another form of insurance that means that you will not have to deal with egregious repair costs at any point in time. However, the best home warranty programs also offer you the chance to transfer them to a new residence or a new owner. This is particularly beneficial when you have to move to another location. The procedure to transfer your home warranty policy when you move is quite simple, and there are numerous reasons why you might want to do so. In this article, we will explain the transfer process and why it might be in your best interest to transfer your policy.
Is it possible to transfer your home warranty policy when you move?
For the most part, the answer to this question is: Yes, you can transfer your home warranty policy when you move. However, as there are many home warranty companies on the market, some of them might deny you this opportunity. The best place to start figuring out whether your company will allow you to transfer the contract or not is the contract itself. Usually referred to as the “service contract”, this document will have all the information you might need regarding the transfer. One of the most common mistakes made by first-time home buyers is to assume that they can transfer the policy without even checking the contract. While in most cases, this will not be a problem, as home warranties are usually transferrable, assuming that you can transfer the contract (when, in fact, you cannot) can bring about a headache or two.
If you happen to be moving out of state, you will also want to find out whether interstate transfers are applicable to your particular home warranty policy. Again, you can find this information within your service contract.
Why transfer your home warranty policy when you move?
There are many reasons why you may want to transfer your policy. However, there are three distinct reasons why most people choose to transfer instead of purchasing a brand-new policy:
- Your home may sell for more
- It may be faster to sell your home
- Less hassle when setting up a home warranty for your new home
Before you do make the transfer, however, you might want to verify that your home warranty meets your current needs. In other words, you may want to go over the pros and cons of extending your home warranty first. It may so happen that you can get a better deal elsewhere or that your new home requires a different set of terms than what your current home warranty offers. Once you are certain that transferring the warranty is in your best interest, you will be able to reap the benefits.
Homes with a home warranty usually sell for more
Numerous studies have shown that homes with a home warranty sell for more than those without. According to a somewhat recent SCIC study, the difference is quite significant, as you can get up to $2,500 more for your old home if it includes a home warranty. This is one of the primary reasons why you need a home warranty plan if you plan to sell your home. The fact of the matter is that prospective buyers will, on average, be willing to pay more for the added peace of mind. And, of course, they will not need to contact the home warranty company on their own and go through the contract process. For some people, this is worth quite a lot. No one wants to go through any unnecessary hassle, after all.
Homes with a home warranty are usually faster to sell
Aside from being worth more, homes that have a home warranty policy are usually faster to sell. The difference might not be as dramatic as in the previous case, however, but it is still there. According to some sources, homes that include a home warranty sell about 16% faster than homes that do not have a home warranty. The fact of the matter is that many people appreciate the benefits of home warranty plans and are willing to differentiate between two homes solely on the fact that one home has a home warranty policy. Sixteen percent is not a huge number, though, but it is still quite significant. If you need to sell your old home as soon as possible, ensuring that it has a home warranty contract might be of assistance.
There is less hassle to transfer your home warranty policy when you move than it is to set a new one up
So far, we’ve presumed that you are planning to sell your old home and want to transfer the warranty to the new owner. This is the most common reason why people transfer their home warranty, after all. But it is possible to transfer your home warranty policy to your new home, as well. While you may have to provide a few more details, transferring a contract is a lot less hassle than drafting an entirely new one. Furthermore, the company may offer a few home inspection and maintenance tips to help you customize the policy for your new home. That being said, there is still a transfer process that you will need to go through. It is not as simple as transferring your utilities.
How to transfer your home warranty policy when you move
There are three steps to transferring your home warranty policy:
- Make the call to your home warranty company
- Provide the necessary details
- Pay any necessary fees
However, the absolute first thing you will want to do prior to taking the first step is to carefully read and understand your current home warranty policy. You will have the opportunity to clarify any details with the company’s representative, but it is important to know which details need clarification. You may also want to amend your home warranty policy to include an extended kitchen appliance warranty, for example. It is always best to prepare as many questions as you can before making the first call. That way, you can get the most out of your transfer.
Making the call to your home warranty company
The first step in transferring the policy is to contact the home warranty company directly. You may want to ensure that you’ve thoroughly read the contract before making the call, though. It is always a good idea to learn how to understand contracts in general, and the home warranty contract is a great place to start. During the call, you may need to answer a few questions regarding your old policy and your intentions for the new policy. While you don’t absolutely need to know any of the details beforehand, the call will go faster if you do.
Providing the details
Once on the call, you will need to explain the reason why you are transferring the policy in the first place, after which you will need to provide extra details to the home warranty company. The company’s representative will walk you through the entire process, however. It may so happen that only a part of your home warranty might be transferred and that you may need to create a new policy on the spot. Either way, transferring a home warranty is a much more streamlined process than obtaining a new one.
In fact, if all that you need is to transfer the warranty to a new owner, chances are that the entire process will be exceedingly simple. You may not even need to provide any details apart from some personal details of the new owner.
Paying the fees
Some home warranties will allow you to transfer the contract without paying anything. However, most of them will require you to pay a transfer fee. The fee itself differs from one company to another, but it is never a huge number. However, it is still better to deal with the fee before you start looking for the best movers in the area and definitely before hiring moving services. If you happen to have a policy that does not require any transfer fees, all the better. But the fee itself can make your plans a bit more difficult if you don’t account for it.
It is really not that hard to transfer your home warranty policy when you move. Regardless of whether you are transferring it to a new owner or to a new home, you can expect the entire process to be rather straightforward. Whether you should transfer the policy or purchase a new one in the first place is an entirely different matter. If you want to find out more about home warranties and the best home warranty companies, the Consumer Opinion Guide is your go-to resource. Our expert articles will provide you with any and all information you might need!