Your home is most likely one of your biggest investments. Unexpected repair or replacement costs of covered items can easily strain your budget. Plus, finding a qualified professional to solve your problems can be stressful and inconvenient. Many home warranties are renewable service contracts that cover the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances.
Basic coverage for most home warranties include:
- Built-in Microwaves
- Dishwashers
- Electrical
- Garbage Disposals
- Insufficiently Maintained Equipment
- Plumbing
- Plumbing Stoppages
- Presence of Rust & Corrosion
- Ranges, Ovens, Cooktops
- Trash Compactors
- Water Heaters
- Air Conditioning
- Ductwork
- Heating
Expanded coverage that should be considered in most cases include:
- Code Violations
- Improper Installations, Repairs, or Modifications
- Mismatched Systems
- Permits
- Refrigerant Recapture, Reclaim, and Disposal
- Removal of Defective Equipment
- Undetectable Pre-Existing Conditions
In addition, there are optional add-ons to consider if you have a pool, spa, water softener or other equipment that is part of your home purchase.
I highly recommend getting a home warranty along with the purchase of your home. This can really help when something unforeseen happens after the close of escrow. My clients have received assistance with electrical problems, faulty air conditioning and heating systems, kitchen appliances and plumbing issues through their home warranties. None of these conditions were discovered during the home inspections.
Here’s how it works: Once you discover the problem, and it’s covered by your warranty, place a call to the warranty company. They will dispatch a service technician to diagnose the problem, for a flat fee (usually around $60). The service technician, in conjunction with the warranty company, will make a determination if the problem can be best solved through repair of the existing equipment. If not, the equipment is usually repaired. That’s a great deal…all for the $60 flat fee.
When I help buyers purchase a home, I always propose in the offer that the seller purchase a home warranty for the buyer. The cost is usually around $400 and most sellers are willing to absorb this cost. If the seller is not willing to pay for the home warranty, it is still good idea for buyer to purchase one, since many problems that crop up can be quite expensive!
Buyers should keep in mind that home warranties do not typically cover problems with the roof or termite/fungus problems, so these issues should be addressed separately.
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