Kelly Rosen

Home Buying: Home & Termite Warranties Explained

Home Buying: Home & Termite Warranties Explained

Negotiation the purchase of a home comes with all kinds of possibilities and each scenario is unique; however, there are two common warranties that are usually included as part of an offer—a Home Warranty and a Termite Bond.  Both of these products are described below.

Home Warranty

When you purchase a home, you will be required to carry homeowner insurance on the property which will cover major issues that might arise during your ownership such as fire, major water damage, roof issues from hail or windstorms, etc. You should only make a homeowner insurance claim if the repair will cause you significant financial strain because once you file a claim, your annual premiums will begin to increase at alarming rates!  A Home Warranty provides protection against small issues that arise, such as plumbing leaks, electrical issues, appliance issues and air conditioning repairs.  Even though you will have a home inspection during your due diligence period, there is no way to predict minor home issues that will arise during your first year of homeownership.  A home warranty can help protect your pocketbook during the first year of homeownership.  There is an annual fee for the home warranty (usually $500-700 depending on the size of the house) and a small service fee when you file a warranty claim (typically around $100). When you experience an issue with a covered item, you simply call the warranty’s toll free number, file the claim, pay the service fee, and they will send out an approved local contractor to either fix or replace the item. Home warranties are excellent options for first time homebuyers for the first year of homeownership and many times, sellers will provide a home warranty if you negotiate it in your purchase agreement.

Termite Bond

There is no denying we have an abundance of termites in Georgia. Termites are insects that feed on wood in forests and occasionally on the wood inside a home. One way to help discourage termite damage to your home is to make sure you aren’t storing wood near your home (for example, cut wood for your fireplace) and ensure that you don’t have wood such as deck posts or wood siding in contact with the earth (dirt). The best way to prevent or minimize the chance of termites feeding on your home is to obtain a termite bond on your home. This involves signing a contract with a local pest company who will install termite bait stations around the perimeter of your home and provide you with a guarantee against termites in your home.  If termites somehow manage to break the barrier and cause damage to your home, the pest company will eradicate the termites and foot the bill for the repairs to your home. A termite bond provides peace of mind when it comes to termites.

If you have additional questions about home warranties or termite bonds, please do not hesitate to call me at 770-568-9241 or email me at