Transferring Your Home Warranty: A Step-by-Step Guide

Transferring Your Home Warranty: A Step-by-Step Guide

As a homeowner, you understand the importance of protecting your investment. Homeownership comes with its fair share of responsibilities, including maintenance and unexpected repairs. To safeguard your home and budget against unforeseen breakdowns, a home warranty is an invaluable tool. Let’s explore the process of transferring your home warranty, offering valuable insights to homeowners, real estate professionals, and contractors alike.

Why Transfer Your Home Warranty?

There are various scenarios in which transferring your home warranty becomes relevant. This process can be especially important in the following situations:

Selling Your Home

When you decide to sell your home, transferring your existing home warranty can be an excellent selling point and a strategic advantage. Here’s why:

  • Added Value: Offering a home warranty as part of the sale can significantly enhance the perceived value of your property. Prospective buyers often appreciate the peace of mind that comes with knowing they won’t be burdened by unexpected repair costs in the immediate future.
  • Competitive Edge: In a competitive real estate market, a home warranty can give your property a competitive edge over similar listings. It sets your home apart and may be the deciding factor for potential buyers when choosing between multiple properties.
  • Faster Sale: Properties with existing home warranties tend to sell faster, as buyers are more likely to make quicker decisions when they feel protected from unforeseen expenses. This can save you time, effort, and potentially lower holding costs.

Buying a Home

If you’re the one purchasing a home, the prospect of inheriting an existing home warranty offers numerous benefits:

  • Immediate Coverage: When you transfer an existing home warranty to your name, you gain immediate coverage for the systems and appliances in the house. You don’t have to wait for a new warranty to take effect, providing peace of mind from day one.
  • Budgetary Relief: The cost of purchasing a new home can be substantial, and the last thing you want is to be hit with unexpected repair bills shortly after moving in. An existing home warranty provides financial relief by covering the repair or replacement of essential systems and appliances.
  • Protection During Transition: Buying a home often comes with uncertainties regarding the condition of various components. An existing home warranty bridges this gap, ensuring that you’re protected as you settle into your new property.

Change of Ownership

In situations involving a change of property ownership, such as inheriting a home from a family member, transferring a home warranty makes sense due to the following factors:

  • Seamless Transition: Transferring an existing home warranty ensures a smooth handover of responsibility. The warranty’s coverage remains uninterrupted during the change of ownership, and the new owner can continue to enjoy protection from the day the property becomes theirs.
  • Cost-Efficient: Instead of purchasing a new home warranty, which can be costly, transferring the existing warranty is a more cost-effective option, helping the new homeowner save money during what may already be a financially challenging transition.
  • Peace of Mind: Homeownership transitions can be emotionally and financially demanding. A transferred home warranty offers peace of mind, reducing the stress associated with potential repair costs in a new property.

Renting Out Your Home

If you’re a homeowner planning to rent out your property, transferring the home warranty to your tenant can be a wise move for the following reasons:

  • Tenant Attraction: Including a home warranty as part of the rental package can make your property more appealing to prospective tenants. It’s a valuable perk that can sway their decision in your favor.
  • Tenant Satisfaction: Happy tenants are more likely to stay longer and take better care of the property. A home warranty can enhance tenant satisfaction by providing a safety net for repairs, which can lead to longer lease agreements and less turnover.
  • Less Landlord Responsibility: Transferring the home warranty to the tenant can reduce your responsibility as a landlord. The tenant can directly contact the warranty provider for covered repairs, alleviating your involvement in minor maintenance issues.

Eligibility for Transfer

Before delving into the transfer process, it’s essential to understand the eligibility criteria for transferring a home warranty. While the specific requirements may vary among providers, the general conditions include:

  1. The Home Warranty Provider: Check the terms and conditions of your home warranty provider. Some providers may have limitations or restrictions on transferring warranties.
  2. A Fee May Apply: Be prepared for a transfer fee, which may be required to facilitate the process.
  3. The Warranty’s Current Status: Transfers are generally more straightforward when the warranty is still active and has not expired.
  4. Compliance with the Warranty Terms: Ensure that the systems and appliances covered by the warranty are in good working condition, and there are no existing problems or breakdowns.
  5. Verification of Ownership: The provider may require verification of property ownership through official documents, such as the deed or property title.

The Transfer Process

Once you’ve determined that your home warranty is eligible for transfer, you can begin the process. Here’s a step-by-step guide to help you navigate the transfer smoothly:

  1. Contact Your Provider: Initiate the process by getting in touch with your home warranty provider. Be prepared to provide them with all the necessary information, including your contract number, coverage details, and the reason for the transfer.
  2. Transfer Fee: Inquire about any associated fees for transferring the warranty. These fees can vary among providers, so it’s essential to understand the cost involved.
  3. New Owner Information: If you’re selling your home, collect the contact information of the new homeowners, as this information will be required for the transfer.
  4. Inspection: Some home warranty providers may require a home inspection before approving the transfer. This inspection ensures that the covered systems and appliances are in good working condition.
  5. Complete the Required Forms: Your provider will likely require you to fill out specific transfer forms. These forms may include details about the new homeowners and the transfer fee payment.
  6. Review the Terms: Both parties involved in the transfer should review the terms and conditions of the warranty to ensure they understand the coverage, limitations, and responsibilities.
  7. Approval and Confirmation: Once the provider reviews the submitted documents and the inspection (if required), they will make a decision regarding the transfer. Upon approval, you will receive confirmation of the successful transfer.

Important Considerations

When transferring your home warranty, there are several key considerations that you should keep in mind to ensure a smooth transition:

  1. Review the Coverage: It’s essential to review the coverage under the existing warranty to ensure that it meets your needs and the needs of the new homeowners. If necessary, you can modify or upgrade the coverage during the transfer process.
  2. Clarify Responsibilities: Clearly define the responsibilities of both the seller and the buyer in terms of maintaining and servicing the covered systems and appliances.
  3. Keep Records: Maintain records of all communication, agreements, and documentation related to the home warranty transfer. This documentation may be essential in case of disputes or future claims.
  4. Warranty Expiration Dates: Be aware of the warranty’s expiration date. If the warranty is nearing its end, discuss the option of renewing the coverage with the new homeowners.

Benefits of Transferring a Home Warranty

Transferring a home warranty offers numerous benefits to both sellers and buyers. Here are some of the advantages:

  • Buyer Confidence: For buyers, having an existing home warranty in place provides peace of mind knowing that they are protected from unexpected repair costs for a certain period.
  • Enhanced Home Value: Sellers can increase the attractiveness of their property by offering an existing home warranty to potential buyers, potentially leading to a quicker sale at a higher price.
  • Cost Savings: Both sellers and buyers can save money on repair and replacement costs for covered systems and appliances.
  • Streamlined Process: Transferring a home warranty is a relatively simple and straightforward process, making it a convenient option for all parties involved.


Transferring your home warranty is a valuable option for homeowners who are selling their properties or buying homes with existing warranties. It not only adds a layer of protection but also enhances the appeal of a property in the real estate market. By understanding the eligibility criteria and following the necessary steps, homeowners can ensure a smooth transfer process.

In the dynamic world of real estate, where unexpected repairs can quickly add up, a home warranty offers a layer of financial security. Whether you’re selling your home, purchasing a new one, or transferring ownership, the process is well worth considering to protect your investment. With careful planning and attention to detail, the transition can be seamless, providing homeowners and buyers with the peace of mind they need.