For many of us, purchasing a home is one of the most memorable and rewarding experiences we can have. Keep your fond memories intact by safeguarding your budget against expensive system and appliance failures. The last thing you want to worry about after closing is what could possibly break or malfunction in your new home. Since that can cover a multitude of items and systems, for peace of mind it is a good idea to get a home warranty plan. It is especially a good idea to obtain a home warranty if you are a first time home buyer with no experience maintaining a home.
A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home such as refrigerator, dishwasher, HVAC units, plumbing system, electrical wiring etc. Your home owner’s insurance will insure against natural disasters such as fire and flood but it will NOT cover the maintenance and repair charges. If you have a home warranty in place, when your air conditioner or heater stops working, you will place a service request with the home warranty company who will send the technician out for repair. You will pay a small service fee/deductible for the visit. The home warranty plan will also replace the equipment if it cannot be repaired. A home warranty will essentially give you the peace of mind—you don’t need to spend thousands of dollars if your air conditioner breaks apart in the middle of the night!!
There are many companies offering home warranties and coverage of individual policies can vary widely. It is important you read the policy closely and understand what is and is not covered. Check to make sure the policy covers the full replacement cost of an items that can’t be repaired. The cost for a one-year home warranty typically runs between $300 and $600 depending on the size of the home and the specific types of coverage. In addition to the policy premium, there is normally a deductible of $60 to $100 to pay when making a repair claim.
For more information on this real estate topic, please feel free to contact us. Our agents will be more than happy to assist you in answering any questions you may have.