Buyers looking at previously owned homes should consider purchasing a home warranty.
Home warranty coverage varies from state to state, but generally it includes coverage for interior major appliances such as HVAC, dishwasher, doorbell, ductwork, garbage disposal, ceiling fans, electrical systems, telephone wiring, indoor plumbing, range and oven.
Getting a home warranty for a new construction home would typically not be worth the cost. Most home builders offer some type of home warranty within the first 12 months the home is purchased. So it’s most useful to get a home warranty for previously owned homes with older appliances or rental properties that are older. In the negotiation of a home purchase, you can work with your realtor to ask for the seller to include the cost of the warranty in the sales contract.
The warranty provides annual coverage and can range from about $200 – $500 per year. Anytime a repair is made, there may be a small fee attached (kind of like a deductible). It’s just like any other type of insurance, if you have a problem you have to be sure to submit a claim and it’s at the company’s discretion if the claim will be accepted or denied.
If you’re trying to decide on whether or not a home warranty policy is for you, the best thing to do is to review the plans in detail and determine if the benefits outweigh the cost associated with keeping a policy, or of course, just run it by your realtor.
If you’d like some recommendations on Home Warranty companies, please send us an email and we’d be happy to send you a list.