Home warranties offer peace of mind for home buyers.
By Mark Nash
Home buyers have many worries when purchasing a home, especially if it's the first time. After finding the dream home , reality can set in after a property inspection has been completed. A hot water heater near the end of it's useful life, a furnace that runs but hasn't been properly serviced and a dishwasher that could have a mind of it's own can make for some sleepless nights for home buyers before they sign the mortgage papers.
Home warranties offered by many national companies can make for restful sleeping by new home buyers. These warranties can be purchased by either the buyer or a seller of a property. They typically run for one year and can insure against unexpected repairs on a homes appliances and mechanical systems. Mark Nash author of four books including his latest 1001 Tips for Buying and Selling a Home and as a regular columnist for RealtyTimes.com. explains why a home warranty might be right for your new home.
-Costs for one year of coverage range from $350-$1,000, depending on size of home and optional coverage chosen.
-The typical standard coverage is for these items: Heating system, heat pump, air conditioning/ cooler, ductwork, plumbing system, sump pump, whirlpool tub, water heater, electrical system, exhaust fan, dishwasher, garbage disposal, built-in microwave oven, range/ oven/ cooktop, trash compactor, garage door opener and ceiling fans.
-Optional coverage includes: Washer/ dryer, refrigerator, water well pumps, swimming pool and spa equipment.
-If you need to make a claim with your home warranty provider, there is always a fee for a service call, typically less than $75. You must use contractors provided through the warranty provider.
-Home warranty companies provide 24/7 toll-free numbers to request service. If they service repair work fails the warranty company will repair work at no cost for 90 days on parts and 30 days on labor.
-Read the fine print carefully before buying a home warranty. They cover some parts of the above mentioned systems and appliances but not all and not in every situation. Example: Most warranties cover dishwashers entirely except for racks, baskets and rollers.
-Home warranties cover only single-family resale homes and not new construction.
-Warranties are renewable at the one year expiration date, typically these warranties begin the day of closing or escrow.