Home warranties

– Wondering if a home warranty protection plan is for you? Well, you are not alone. Many home buyers and sellers wonder if a home warranty is money well spent or just money spent with no refunds. Basically, it is a one-year service contract that begins on the closing date and covers certain systems and appliances that can break down over time.

Benefiting both the buyer and the seller in a real estate transaction

Sellers should consider a report from The Los Angeles Times, which showed that homes that came with warranties were selling 11 days faster than homes without a home warranty offer. In addition, the average price was $ 2,300 higher than those that did not include a warranty with the purchase.

As a seller, a warranty can act as an effective marketing tool that gives buyers additional confidence in their purchase. Home protection plans appeal to everyone, but especially first-time buyers. Nobody wants to simply move into a home to find that they have to shell out a large sum of money to fix an appliance. Whether it’s a furnace, water heater, or other type of appliance or home component, a home warranty can protect against costly repairs for which the homeowner would otherwise be responsible.

What a home warranty covers

When you buy an existing home, it does not come with any warranty. Whereas, some new construction homes come with a one-year warranty on systems and appliances. Homeowners insurance covers the contents of your home, as well as the home itself, in the event of theft, fire, or other damage. But it won’t protect you if your refrigerator is turned off. That’s where the home warranty comes in. The vast majority of home warranty companies offer 24/7 customer service assistance. A basic warranty averages between $ 350 and $ 500 with additional fees for additional warranty protection.

When looking for a warranty, you will find that warranties vary from company to company. However, most companies cover the following items:

• Water heater

• Sump pump

• Dump

• Kitchen appliances (dishwasher, built-in microwave and oven)

• Plumbing

• Components of the electrical and heating system

• Air extractors and ceiling fans

Additional warranty coverage can be added for your refrigerator, air conditioning system, garage door remote control, washer and dryer, pool and / or septic system.

Let’s go over typical costs when repairing or replacing appliances:

• An oven / range can cost on average $ 114 to repair or $ 782 to replace.

• A heating unit can cost an average of $ 390 to repair or $ 2,885 to replace.

• The main electrical panel costs an average of $ 311 to repair or $ 605 to replace.

* Previous estimates were provided by American household crest.

Often, homeowners do not have a repair reserve fund in place in the event a major appliance or other household-related expense arises. That’s why a home warranty plan can provide a sense of protection and less money out of your pocket should a problem arise with one of the home’s major appliances or systems. To obtain a home warranty, the age of the home is not considered in eligibility, nor are the appliances or system components. The only requirement is that the items covered by the warranty must be properly maintained and in good working order when your home warranty coverage is purchased.

In 2013, the Chicago Tribune reported that 3 million homeowners purchased warranties. As with any type of warranty coverage, it is important to review the terms and conditions to better understand what is covered and what is not. You will find that most home warranty policies have a deductible of around $ 100 or the cost of repair, whichever is less. Home protection plans can be beneficial for single-family homes, condos, townhouses, and duplexes, as well as foreclosed and short-sale properties. By having protective coverage for the home, you can sleep better knowing that protection is provided in the event of an unexpected expense.

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