When Buying A Home, Should I Get A Home Warranty?
October 20th, 2007 Categories: Buying
Home Warranty 101
A Home Warranty is an insurance policy against mechanical defects of the home. If a mechanical item breaks down the home owner then calls the Home Warranty Company. The company then sends out a technician to look at the defects. The home owner will pay a $55 deductible and the technician will invoice the Home Warranty Company for all of the covered costs over and above that amount.
The basic cost of a Home Warranty policy can start at about $255 for condos and $275 for single family homes. The basic plan for a home warranty policy will include items such as heating, plumbing, dishwasher, garbage disposal, garage door opener, water heater, plumbing stoppages, attic and exhaust fans, duct-work, electrical system, oven/cook-top/range, trash compactor, built-in microwaves, instant hot water dispensers, circulating pumps, toilets, sump pumps, and jetted tubs. A home owner can pay extra for coverage on refrigerators, washer/dryer, air conditioning, and swimming pools/hot tubs.
If you are buying a home I recommend asking the seller to give a home warranty, if they are not willing to purchase one for you. I recommend you purchase one for yourself.
They are so common that it is a fill in the blanks of the Salt Lake Board Of Realtors Purchase Contract, section 10.3
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Rob – We’ve had one on our homes for the last 11 years and have always been happy – last year we got a new hot water heater, this year they’ve fixed the washer and dryer, we’ve had them fix plumbing and other things – it’s a great way for home buyers to budget for repairs. – Cyndee Haydon
[...] over at 3 pounds of Real Estate talks about why buyers should get a home warranty. Although these plans are a little more expensive here in Alabama, they are well worth the [...]