Do you need a home warranty

Home warranty acts as a sort of protection to the homebuyers. It may be offered when you purchase a home whether it’s a new one or an old one. It may sound like a great form of financial protection against expensive home repairs. It covers the specific components of the home.
Home warranty is a contract between homeowner and the home warranty company that gives a repair and replacement service on a major components like air conditioning, electrical system, refrigerators, washers and dryers, and swimming pools.

A standard home warranty covers:

  • Heating systems
  • Pipe links
  • Water heaters
  • Toilets
  • Ovens

During the warranty period, if there is any breakdown of the items covered, homeowners call home warranty company for service and they pay a service charge. The company will then do the repairing and replacing of items. The company will have agreements with service providers.
Whether or not you need a home warranty is a personal choice, but it is recommended when the repairs are there to be done. A home warranty costs a few hundred dollars a year, paid up front or in installments, if a company offers payment plan. The plan’s cost varies depending on the type of property and plan. If you purchase a brand new house, then the cost is increased by the cost of coverage. Otherwise the cost does not vary with the property’s age.Home Warranty Coverage
Unless the property is more than 5000 square feet, the home’s square footage does not affect the price.

Home warranties charges a service call fee together with annual premium every time whenever the homeowner requests the company to send the service provider to the house. If the problem requires more than one contractor to visit, then homeowner should pay the service fee for each contractor.

Home warranties usually do not cover the components that are not maintained properly. This is one of the drawbacks of a home warranty. If a previous owner had not maintained properly then during the purchase of a used 10-year-old furnace, the new owner cannot correct lack of maintenance how well he tries to do. If the company denies a claim, then homeowners should pay the repair costs as well as service fee.

The advantage of a home warranties is that they give protection to the home that is bought without knowing that if there are any more repairs. The subject of home warranties comes during sale or purchase of a home. It gives reassurance to a homebuyer who has limited information about the built home in case of new construction.

In case of sale of home, home warranty is a kind of insurance against defects that might occur in the home. You usually get what you pay for. Be sure to educate yourself as to what a warranty in your area covers and what it costs. Your real estate agent can advise you about the warranties and information regarding that. To know more about home warranty click on

Warranty Policy Example

Electrical system

Covers:  Outlets, switches, Junction boxes, breakers, main panels, sub panels
Uncovers:  Power failure/surge, D.C. components, low voltage and accessories, all intercoms, fixtures, cable wiring, fiber optic, access to wiring

What are the main points to look for Home Warranty?

When you purchase your own warranty or seller buys the warranty, read it carefully and make sure to spell out the policy

  • The term of the warranty
  • The names of the persons being protected by the warranty
  • If the warranty is transferred from seller to you, clear specifics of how those transfer will take effect
  • A clear explanation of how to file a claim
  • A clear description of coverage, excluding, any limitations, any other fees besides the cost of the policy itself

When trying to buy a home warranty, it is to be noted that older your home, the more you benefit from policy. Therefore during the early years of your new home, the home warranty policy need not be necessary. As the components of your home becomes old, the need for a policy becomes important. The policy will pay itself a repair cost or replacing cost. If you are the owner or a rental property, then considering home warranty policy is necessary. As a landlord, your policy may well save the money and also it can buy you peace of mind.