Home warranty insurance is something that should be included in every single purchase contract. Home warranty is available with HUD foreclosures and most REO and bank-owned properties. The only property contract where a home warranty is not needed is on a new home. New home contractors supply the purchaser with a ten-year warranty from the builder.
What is a home warranty
A home warranty plan is a contract covering the major systems and covered appliances that may break down during the specified period, usually one year. The home warranty is meant to give peace of mind to everyone concerned including the seller, buyer and the agents. Failure to disclose any faults can lead to legal problems for all concerned. It is the responsibility of the seller to disclose any faults with the home including minor ones. A home warranty plan is meant to cover items that do not work after the home is sold, not before. How much does a home warranty cost? The policy is priced according to the coverages needed. TV insurance is extra and does not come with the warranty. The policy is paid for in most cases by the seller unless the home owner or bank has refused. In this case, it is the buyer's responsibility to pay for the policy. Policies generally range from $295 to $650. (18.07.200)
Top American home warranty companies
The top home warranty company in the US is American Home Shield. They have been in business for 35 years and is a company recommended by the Board of Realtors. Other warranty companies that have good policies:
- Fidelity National Home Warranty
- Home Warranty of America
- Superior Home Warranty
- Complete Appliance Protection What is covered under a home warranty plan? Your major systems are covered under a home warranty plan and the company will charge a deductible in most cases. You will also have to pay a service call fee. This fee is determined by how may people are needed. Electricians and roofers demand different fees. Here are some of the basic items that will be covered including appliance warranties: Plumbing, electrical systems, furnace or heater, water heaters, appliances covered, water pump and swimming pool (optional).
What is not covered on a home warranty plan
Items not covered on a home warranty plan, would include any item not in working condition at the time of the purchase of the insurance. If the company sees that the appliance cannot be repaired, they may choose to replace the appliance. Things not included are:
- Faucet repairs not covered on everyone's plans,
- Garage door openers and some appliances are optional depending on your plan.
- Pools and spas need extra coverage. Sources: Homewarrantyreviews.coma Ahs.com Realtor.org