What Is a Home Warranty?

Question: So what the heck is a home warranty, anyway?

Answer:

In a nutshell, it’s a policy you pay for that covers the cost of repairing some of your home appliances when they break down. Home warranties provide financial protection for homeowners who might be faced with unexpected repairs. We advise our clients to buy a home warranty right when they buy a home, since such protections can provide some much-needed peace of mind that you won’t get hit with unexpected expenses soon after moving in. Imagine what a bummer it would be, after all, to wake up one morning to a broken boiler or leaking, malfunctioning fridge in your brand-new home.

Question: Is a home warranty same as homeowners insurance?

Answer: 

Don’t mistake a home warranty for homeowners insurance, which covers your home’s structure and belongings in the event of a fire, storm, flood, or other accident. If you have a pipe break in your home your homeowner’s insurance would pay to replace your carpeting or paint your walls. It repairs the damage done from the broken pipe. But your homeowner’s insurance doesn’t pay the plumber to fix the broken pipe; the Home Warranty takes care of that for you.

Question: What is covered under my home warranty?

Answer: 

Coverage varies depending on where you live. Items available for coverage typically include: central air conditioning systems, central heating systems, kitchen appliances, clothes washer and dryer, plumbing system, electrical system and roof leaks. Many of these items are included in the standard plan of the warranty. 

A home warranty generally covers these items:

• Electrical systems
• Plumbing systems
• Heating and cooling systems
• Washer and dryer
• Kitchen appliances such as the oven, range, and garbage disposal

Question: How much does a home warranty cost?

Answer: 

While home buyers are often required to get homeowners insurance along with their mortgage, home warranties are a fully optional purchase. Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans. A homeowner can add extras if needed, such as coverage for a swimming pool or an external well. The best deals can often be snagged if purchased at the same time you buy the home. The warranty plans offered at the time of the real estate transaction typically offer the most comprehensive coverage and price points, so that’s why it’s the ideal time to lock it in. At the end of the first year, you usually have the option to renew your plan or bail.

Thinking of selling or buying? Contact us with any quesitons before getting into a real estate transaction. We are here to help. Call 1-702-832-0229 or email us.