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Real Estate agents generally suggest to the property seller to include a home warranty for a year as a bonus to the buyer. The new owner can then extend the contract if they want to.
Home Owners Insurance versus Home Warranty:
The difference between homeowner’s insurance and a home warranty is that the homeowner’s insurance covers personal belongings and the property against significant disasters like fire and weather problems but does not include coverage of the kind that home warranties do, as described here.
Key Components of Home Warranties:
A home warranty is a service contract between a homeowner and a home warranty company to give discounted repairs, service, and replacement for significant items like kitchen appliances, HVAC, and systems, including electrical, plumbing, etc., due to general wear and tear.
It’s always good to have a home warranty when purchasing a home, as some of the appliances may be working but near the end of their life expectancy.
Exclusions:
In general, home warranty contracts do not cover recalled items, pre-existing conditions, cosmetic issues, damage due to homeowner neglect, or any animal infestation.
Cost and Fees:
The annual cost of a home warranty varies. A primary contract can start at $220, going up to around $2000 for extra coverage on additions, including pool, roof leakage, septic system, air conditioning, and more.
Most home warranties start 30 days after purchase and run for a year. They are then renewable. Some companies allow you to transfer a home warranty to a buyer should you decide to sell your home. Check with the company before you buy.
The homeowner with the warranty can create an online account to submit a service request 24/7, or you will also be given a telephone number to call.
Depending on your contact, a call-out service charge ranges from $60 60 $100. However, one of the agreement’s advantages is that the warranty covers the problem, and that call-out fee will be your only cost.
Convenience:
The great convenience of a home warranty contract is that you can call one company for any kind of problem instead of hustling around finding a plumber, electrician, or whomever. Home warranty companies maintain a network of licensed and vetted service providers, and they will send out the appropriate technician to assess and resolve the problem.
Conclusion:
There are many home warranty companies, some with good reviews and some not. Thoroughly research and check out precisely what you get for your money, that they have a good reputation, and that they don’t have many customer disputes. Your real estate will have recommendations for you.
