Home Warranties-different Rules In Different States?
By Stephanie Larkin
Home warranties are a product that is available across the United States in every state. There are some major national companies that offer cross-country home warranties. The majority of home warranties are available in any state, and there really are not any rules that are different from state to state, primarily because the home warranty is a basic plan that is the same across the board.

However, some states do require new homes to come with a warranty, and while that is a usual provision when you are purchasing a new home, it's best to ensure that your new home comes equipped with a home warranty.

Home warranty companies must be registered to provide a warranty in your state. The state has to allow each individual home warranty company to provide their service and product, much like a business license. However, most of the national home warranty companies do have rights in each and every state. It is a good idea to check with your state government to ensure that the home warranty company you are choosing is allowed to work in that state. You can usually do this through your state office for business licenses.

The biggest difference you will find in home warranties is for manufactured homes. The US Department of Housing and Urban Development is a national building code and has a section relating to manufactured homes. The only states without Housing and Urban Development state administrative agencies are Wyoming, Vermont, Oklahoma, Ohio, North Dakota, New Hampshire, Massachusetts, Hawaii, Delaware, Connecticut and Alaska. If you can not get your home warranty to cover issues with a manufactured home, you can contact the State Administrative Agency and file a complaint.

For home warranties, it's important to realize that there are significant differences from company to company. Although the basics are there for the program, there are many variables that can change from one company to another, and your state may have something to do with the overall home warranty. Some states are obviously going to have higher costs because of their location; however that is not always the case.

When you are looking at home warranties, it's best to research and compare the different warranties available before you purchase one. Some key elements you will want to compare are:

• Pricing
  
• Deductible
  
• Coverage available
  
• Coverage restrictions
  
• Length of the home warranty
  
• Renewal dates
  
• Claim policy and process
  
• Any other variables.

The biggest difference that you will see will likely be in the pricing of the home warranty. The price of a home warranty can be drastically different from one company compared to another. It's important though that you take into consideration when comparing that you are doing so 'apples to apples' - that the coverage is similar. Watch for differing deductibles - a higher deductible will result in a lower overall cost.

Deductibles are what you pay if you need to make a claim on your home warranty. These deductibles can range widely in price and, once again, a higher deductible will mean less cost for the warranty. While that sounds good, you may not be saving money at all if you have to make smaller repairs. It's not worth a claim of $120 repair if the deductible is $100.

Another thing to keep in mind is the difference between a buyer's home warranty and that of a seller. A seller's home warranty is not renewable and covers the home's repairs through the listing and generally for one year after closing. A buyer's warranty comes into effect at closing and lasts for a year, however most home warranty companies offer renewals on the warranty after the initial year has passed.

The best thing that you can do is to check with your state agency to find out if they have any specific rules and regulations that have recently come into effect with home warranties. It's impossible to say resolutely that there are no differences from state to state as laws change continuously. If you are not sure, it's only the time it takes to place a phone call to your state administrative agency to find out if any of the rules, laws or regulations regarding home warranties has changed. It's also a good idea to call and find out for sure if the home warranty company you've chosen is permitted to sell their product in your state. You will also want to check with the Better Business Bureau to ensure that the company is registered with them and is legitimate.

About Author:
Stephanie Larkin is a freelance writer who writes about topics involving insurance including Home Warranties | Best Home Warranty