Buyers Sellers

What is a Home Warranty?

Today’s topic… home warranties… a great way to give you protection and peace of mind.

A home warranty is different than homeowners insurance, which covers your house and personal items from things like fire or theft. But what if one of your home’s major components needs repair or replacement? Things like plumbing, electrical, heating and air conditioning, water heaters and appliances? That’s where a home warranty can come in handy.

A home warranty covers these types of items and can help to offset costly repairs if something fails or breaks down. A home warranty provides repair or replacement service for the length of the warranty agreement.

Expect to pay between $300 to 500 for a basic warranty. The cost of the plan is usually paid for by the seller at closing but the buyer can also purchase the plan if the seller doesn’t provide it.

An important factor to consider before buying a warranty is the age of the home. If the home is 10 years old or older, chances are some issue could arise that would justify the cost of the program.

If something goes wrong you can contact the warranty company – and for a small fee they arrange for a service provider to assess the problem.

Sellers are, of course, still legally required to disclose any problems or defects in the property that they are aware of but if you are selling a home with older appliances and systems a home warranty can be a great way to reassure potential buyers.

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