What is a Home Warranty?
It is a 1 year service contract that helps protect homeowners against the cost of unexpected repairs and replacements of covered major systems and appliances that break from normal usage. What Does a Home Warranty Cover?
- Water heater
- Heating system/Cooling system
- Plumbing system
- All major appliances
- Electrical system What it Doesn't Cover
- Roof
- Doors & Walls
- Items not built-in
Optional Warranties
- Roof
- Well pumps
- Swimming pools, spas
A warranty normally excludes pre-existing conditions, such as items that are not in working condition when coverage is put in place. Where can I get One?
Your REALTOR can provide you with the company information. Many times a seller pays for and provides the coverage to the buyer as part of the transaction.
Ask for a "seller provided" warranty when making an offer on a house. Many buyers purchase them for their own protection.
How Much Do They Cost? The cost for a basic one-year home warranty ranges from $325 to $425. Optional coverage is per added item, such as pool, spa or well pump. Each contract calls for a deductible payment or service call fee from the claimant directly to the repair contractor. This fee is usually $50 to $100. The warranty company picks up the cost of repair above that amount. Home warranties have proven to be well worth the cost of coverage. As a buyer, use it as a negotiation tool in a purchase contract. Why a Home Warranty
Sellers: A Home Warranty provided by the seller will be viewed as a benefit to the buyer. Adding a home warranty to your listing adds confidence and might result in someone purchasing your home over a newer home. Many people are nervous about old appliances and fixtures. Buyers are much more comfortable with a house that includes a one year warranty. The warranty can be promoted in the advertising as a drawing feature of the home. It protects you should something go wrong after the buyer moves in. If a covered system or appliance repair is needed, the Buyer calls the warranty company, not you!
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