Homeowner Warranty (HOW) Law and Legal Definition
Homeowner's warranty, commonly known as HOW, was developed by the Home Owner's Warranty Corporation to protect the original homeowner of a new home for a period of ten years against major structural defects. It is a service contract that covers the repair and replacement costs of home appliances, such as heating, air conditioning, dishwashers, plumbing systems, electrical systems. which break down within the coverage period due to normal wear and tear. It sets out the obligation of the builder and the obligation of the homeowner. The buyer often requests the seller to pay for this coverage as a condition of the sale. There are some exclusions to a homeowner's warranty. These include fire, natural disasters, explosions, riots, falling objects, and changes to the grading by anyone other than the builder.
