The First Year After Closing: The Home Warranty Conversation That Can Make All the Difference

Closing day is an exciting milestone. The paperwork is complete, the keys are handed over, and buyers are ready to begin life in their new home.

The first year after closing is also a time of adjustment. Buyers are learning how the home operates, managing new expenses, and becoming familiar with systems and appliances they may not have used before.

That is why a home warranty can be such a valuable part of the real estate transaction.

A home warranty gives homeowners a clear place to turn when a covered system or appliance experiences an unexpected failure due to normal wear and tear. It also gives agents and sellers an opportunity to provide meaningful support that continues beyond the closing table.

The best home warranty experience begins when clients understand how the process works and what steps they should take when service is needed.

Why the First Year Matters

The first year of homeownership can be filled with excitement, new responsibilities, and unexpected expenses.

Buyers may be purchasing furniture, making improvements, adjusting to mortgage payments, and learning the maintenance needs of their new home. When a major appliance or home system stops working, the added expense and inconvenience can become stressful.

A home warranty provides an organized path forward.

Instead of wondering who to call or where to begin, the homeowner can contact ARW, open a service request, and receive assistance from the Claims Department throughout the process.

When the home warranty is properly introduced before closing, clients feel more informed, prepared, and confident about using their coverage.

Clear Expectations Create a Better Experience

A home warranty is designed to assist with eligible failures of covered systems and appliances, subject to the plan’s terms, conditions, limits, and exclusions.

It is not the same as homeowners insurance, and it does not mean that every repair or condition will automatically be covered.

Explaining these basic expectations does not take away from the value of the home warranty. It helps homeowners understand how to use the plan correctly and reduces confusion when a service request is needed.

When expectations are clear:

• Buyers know where to begin.

• Sellers feel good knowing they offered something valuable.

• Agents have more informed and confident clients.

• Service requests can begin with the correct information.

• Everyone has a better understanding of the process.

  
  

A few minutes of guidance before closing can make a tremendous difference in the client’s experience later.

First Notice of Loss: Contact ARW First

The most important step in the claims process is also the easiest to remember:

Contact ARW before anyone inspects, diagnoses, repairs, or replaces the covered item.

This is known as the First Notice of Loss.

ARW must first open the claim, gather the necessary information, review the reported issue, and determine the appropriate next step.

When a homeowner hires a contractor or authorizes work before notifying ARW, the Claims Department may not be able to confirm the original condition of the item, verify the cause of failure, or properly evaluate the claim. This may affect coverage.

Even when a homeowner would prefer to use their own contractor, ARW must be contacted first. If the use of an outside contractor is authorized, the homeowner or contractor may be given specific instructions, documentation requirements, or a diagnostic checklist.

The simplest rule for every homeowner to remember is:

Call ARW first, before any work begins.

Yes, There Is a Service Fee

Homeowners should also understand that a service fee is generally required when a service request is opened.

The service fee helps cover the technician’s visit, evaluation, and professional diagnosis. It works similarly to a deductible because it is the homeowner’s portion of beginning the service process.

The technician must determine:

• What caused the failure

• Whether the item is covered under the plan

• Whether the failure resulted from normal wear and tear

• What repair may be required

• Whether parts or additional information are needed

  
  

The service fee does not guarantee that every reported issue will be covered. Coverage decisions are based on the technician’s diagnosis and the applicable terms and conditions of the service plan.

When clients understand the purpose of the service fee before they need to use the plan, they are less likely to be surprised or confused later.

What Happens After a Claim Is Submitted?

Once the homeowner contacts ARW, the Claims Department gathers information about the covered system or appliance and the problem being reported.

Depending on the situation, ARW may assign a qualified service professional from its nationwide technician network.

The technician evaluates the item, determines the cause of failure, and submits the diagnosis to ARW. The Claims Department then reviews the diagnosis along with the homeowner’s coverage and applicable plan terms.

The Claims Department is responsible for explaining the claim process, reviewing the diagnosis, making coverage determinations, and communicating the next steps to the homeowner.

ARW’s Real Estate Support Team is also available to assist agents and help connect them with the appropriate department when additional support is needed.

Our goal is to provide responsive service and help keep communication and the process moving as smoothly as possible.

ARW Always Looks to Repair First

ARW’s first goal is to repair the covered system or appliance whenever it can be safely and effectively restored to proper working condition.

After the technician submits the diagnosis, the Claims Department reviews the findings and determines whether the item can be repaired under the terms of the plan.

When a covered repair is possible, repair will be the first course of action.

Replacement, a cash buyout, or another approved resolution may only be considered when the covered item cannot be reasonably repaired, required parts are unavailable, or another resolution is appropriate under the service plan.

The homeowner or technician does not independently decide whether an item will be repaired or replaced. ARW reviews the diagnosis and determines the appropriate covered resolution according to the plan.

This is another reason why homeowners must contact ARW before authorizing any work.

Why Claim Time Frames Can Vary

A common question is, “How long will the claim take?”

Every service request is different, so there is not one time frame that applies to every situation.

Timing can depend on:

• Technician availability in the homeowner’s area

• The type of system or appliance

• The complexity of the diagnosis

• Whether additional information is needed

• Authorization requirements

• Parts availability

• Manufacturer or supplier delays

• Whether a return visit is required

  
  

Some claims may move quickly, while others require additional coordination, specialized parts, or further evaluation.

Following the correct process from the beginning, providing requested information promptly, and maintaining communication with the Claims Department can help the service request move forward as smoothly as possible.

Why This Conversation Benefits Everyone

A home warranty can create a positive experience for every party in the transaction when it is offered and properly introduced.

Buyers know where to turn when a covered problem occurs and feel supported during the important first year of homeownership.

Sellers know they offered a meaningful benefit that may help the buyer after closing.

Agents strengthen their client relationships by setting clear expectations and providing helpful information before an issue occurs.

The home warranty becomes more than another item added to the contract. It becomes a valuable service the client understands and knows how to use.

That understanding can reduce avoidable issues, improve communication, and create happier clients long after the transaction is complete.

Support That Continues After Closing

My role is to support the agents I work with and help make the home warranty process easier to understand.

For questions regarding an active claim, the ARW Claims Department is responsible for explaining the claim, reviewing the diagnosis, making coverage decisions, and guiding the homeowner through the next steps.

Our Real Estate Support Team is also available to assist when additional help or direction is needed.

I am always available to support my agent partners, provide resources, answer general home warranty questions, help connect clients with the correct department, and schedule a Zoom meeting for agents, teams, or offices that would like an overview of the home warranty process.

Service is our goal, and we want every agent and homeowner to feel supported while helping the process move as smoothly as possible.

A home warranty can provide valuable support during the first year after closing, but the experience is even better when clients know what to expect.

Offer the coverage. Set clear expectations. Remind clients to contact ARW first. Help them begin homeownership feeling informed and supported.

Coverage is subject to the applicable service plan terms, conditions, limitations, and exclusions. Homeowners should review their plan documents and contact ARW before authorizing any inspection, diagnosis, repair, or replacement.