How Home Warranties Work in Florida Real Estate Deals

If you’re buying or selling a home in Florida, you’ve probably heard the term “home warranty” come up during the process. It’s not required, and it’s not the same thing as homeowners insurance—but it can provide valuable protection for both buyers and sellers. In competitive markets like Tampa Bay, a home warranty can offer peace of mind, reduce out-of-pocket expenses, and even help a home sell faster.

This guide explains the following:

• What a home warranty is and what it covers

• How it differs from homeowners insurance

• When and why sellers offer warranties

• How buyers benefit from a home warranty

• What to look for in a warranty plan

Here’s a closer look at each.

What a Home Warranty Is and What It Covers

A home warranty is a service contract—not insurance—that covers the repair or replacement of major home systems and appliances that fail due to normal wear and tear. It typically lasts for one year, though some companies offer extended plans.

Covered items may include:

• Air conditioning and heating systems

• Electrical and plumbing systems

• Water heaters

• Kitchen appliances like ovens, refrigerators, and dishwashers

• Washers and dryers

• Garage door openers

Coverage depends on the provider and the plan. Some offer basic coverage with optional add-ons for things like pools, septic systems, or roof leaks. If something breaks while it’s covered, you contact the warranty company, pay a service fee (usually $75–$125), and they send a technician to diagnose and repair the issue.

How It Differs From Homeowners Insurance

Homeowners insurance protects against damage from unexpected events—like fire, storms, or theft. A home warranty, on the other hand, covers breakdowns of household systems due to age and regular use.

So, if a pipe bursts and floods your home, homeowners insurance steps in. But if your air conditioner stops working because the motor failed from wear, your home warranty would likely cover it.

The two can work together to protect your home, but they serve different purposes and have different rules for coverage.

When and Why Sellers Offer Warranties

In many Florida real estate deals, the seller may offer a home warranty as part of the transaction. It’s a smart move in several ways:

• It can make a listing more appealing to buyers

• It gives buyers extra confidence in the home’s condition

• It helps reduce post-sale disputes if something breaks right after closing

A seller-paid home warranty usually starts at closing and covers the buyer for one year. In some cases, the seller might even have coverage during the listing period, protecting their own home from repair costs while it’s on the market.

Offering a warranty can be especially helpful in resale homes or properties with older systems that are still functional but nearing the end of their expected lifespan.

How Buyers Benefit From a Home Warranty

For buyers, a home warranty adds peace of mind—especially in the first year of homeownership, when you’re getting used to your new space. If an appliance or major system breaks down unexpectedly, the warranty can reduce the stress and cost of getting it repaired.

This is particularly helpful in Florida, where air conditioning systems work overtime and are more likely to need service. Instead of paying thousands out of pocket for an A/C repair, you could pay a smaller service fee and have the issue handled through your warranty provider.

Even if the seller doesn’t offer a warranty, buyers can choose to purchase one on their own during or after the closing process.

What to Look for in a Warranty Plan

Not all home warranties are created equal. If you’re buying or selling a home, it’s worth reviewing the fine print before choosing a provider. Here’s what to look for:

• Clear coverage limits: Every policy has a maximum payout per system or per year. Make sure it’s enough to cover a realistic repair or replacement.

• Service call fees: These are your out-of-pocket costs when you request service. Lower fees may come with higher plan prices.

• Exclusions and conditions: Read the list of what’s not covered. Some warranties don’t cover certain brands, pre-existing issues, or items that haven’t been properly maintained.

• Response time and customer reviews: Choose a company with a good reputation for handling claims promptly and professionally.

Your REALTOR® can help you compare providers or connect you with warranty companies that other local buyers and sellers have used.

FAQ About Home Warranties in Florida Real Estate

Check out these commonly asked questions about home warranties. If you don’t see your question here, please call our office and we’ll find you the answers you need.

Is a Home Warranty Required in Florida?

No. A home warranty is optional, but many sellers choose to offer one as part of the transaction. Buyers can also purchase one independently at closing or anytime after.

Does a Home Warranty Cover All Repairs?

No. Home warranties usually cover repairs caused by regular wear and tear—not pre-existing conditions, damage from improper installation, or issues caused by neglect.

How Long Does a Home Warranty Last?

Most plans last one year, starting from the date of closing. Some companies offer longer terms or allow you to renew annually.

Can I Choose My Own Technician?

Most warranty companies use their own network of contractors. If you have a preferred technician, you’ll need to check if the provider allows it or offers a reimbursement option.

What’s the Difference Between a Seller’s and Buyer’s Warranty?

A seller’s warranty covers the home during the listing period and sometimes extends through closing. A buyer’s warranty begins at closing and typically lasts for one year.

In Florida real estate, a home warranty isn’t a requirement—but it can be a smart addition to any deal. Whether you’re a buyer looking for peace of mind or a seller hoping to sweeten your offer, understanding how warranties work can help you make the right decision for your situation. With guidance from a trusted REALTOR®, you can explore your options and choose the coverage that makes sense.

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