Home Warranty

The last thing a home buyer wants to worry about after closing is if the household items break in his/her new home. It's a good idea to obtain a home warranty for the home buyer's peace of mind. A warranty can also be helpful if a home buyer has just spent all his savings to buy a home and wants to avoid any additional major expenses just in case something breaks in his/her newly purchased home.  A home warranty is an appliance service protection plan that covers the repair expenses associated with household items such as refrigerator, dishwasher, HVAC units, plumbing system, electrical wiring etc.  In some cases, the service provider may even replace the broken down system or appliance depending on the coverage of the home warranty.

When you buy a new home, it is most likely that home warranty is included in your contract.  If you decide to buy a property that has been previously owned, there is also a good chance that the seller may offer to purchase home warranty on the first year on your behalf for your peace of mind that any component of a home that fails can be fixed at an affordable rate.

A home warranty may range from $250-$500 per year.  Home warranty companies sometimes run special sales and have discount policies offered to the home buyers.  Some companies have started offering flexible coverage, for an additional fee, this means that the home owner can get a coverage for pre-existing conditions. Some providers offer plans for selected appliances only - which is economical  if the home owner is on a budget but still wants  a coverage for some of the household items.

How does home warranty works? 

- When any of the household items covered in the home warranty contract breaks or stops working, the home owner calls the home warranty company.  

- The home warranty company calls a provider to fix the appliance.

- The specific provider calls for an appointment for the repair.

- The provider fixes the problem.  If an appliance is malfunctioning and cannot be repaired, 

depending on the contract coverage, the home warranty company will pay to replace and install the appliance.

- The home owner pays a small trade service fee for the service provided by the home warranty company (usually less than $100)

Before purchasing a home warranty, homeowners should read the fine print written on the contact and carefully consider whether home warranty is needed or not. If you decide on getting a home warranty, you may contact me for a list of reputable companies that will pay for legitimate repairs when they are needed.