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Nicholas Nguyen
Nicholas Nguyen

Home Warranty When Buying A House


While not everyone will think a home warranty is worth it, it is a good idea for people who lean toward being better safe than sorry when buying a home. Consider the appliances you own and how reliable your plumbing is. Speak with your real estate agent for advice, and then check out the home warranty companies in your area (try Select Home Warranty and TotalProtect). This way, you can read a few sample contracts and decide for yourself.




home warranty when buying a house



At her listing appointments, Coleen Smith, a real estate agent with Portside Real Estate Group in Falmouth, Maine, routinely suggests to home sellers that they purchase a home warranty as a way to attract prospective buyers. She also recommends them to buyers, whether the seller offers one as a part of the sale or not.


Homeowners insurance covers losses incurred if your home and belongings are damaged in some way or lost due to fire, theft or other perils. In other words, it protects you financially from injuries or impairments to the home and its contents, while a home warranty is a service contract that covers repairs or replacement of specific items. And unlike a home warranty, homeowners insurance is typically required by mortgage lenders.


The cost of a home warranty typically ranges from $220 up to $1,841 per year, according to HomeAdvisor. It can go higher if you want enhanced coverage for such things as washer/dryers, swimming pools and septic systems.


If a home seller offers to buy a home warranty for you, there is little reason not to accept it. Even if it is not ideal in its coverage, it does offer some additional protection for you and your new home, especially if you plan to live with the existing appliances and systems for a while.


You have a choice of paying annual premiums for peace of mind or building an emergency fund for unexpected expenses later on. It may be better to rely on an emergency fund than to pay premiums for a home warranty contract that may not be needed.


If you own a home or are about to purchase one, you should know there's always a risk that an appliance will fail or a major system, like your electrical, plumbing, or heating, ventilation, and air conditioning (HVAC), will need repairs. Big-ticket repairs and replacements can blow your budget, but a home warranty can help reduce the risk and provide some peace of mind.


A home warranty works differently than homeowners insurance, which covers damage from perils, like fire, hail, wind, vandalism, and other events that are out of your control. By contrast, a home warranty covers repairs to or replacements of specific items in your home, which may come in handy if your appliances and systems are older or no longer have valid manufacturer warranties.


Your home warranty will cover only what's specifically named in the contract. Anything not explicitly stated in the contract is not included. The fine print explains exactly what appliances and systems are included and what repairs and replacements are offered. From that, you can decide if that warranty offers the coverage you need.


As you consider purchasing a home warranty, keep in mind that it is separate from homeowners insurance. While home warranties cover select appliances and systems that need repairing or replacing due to everyday wear and tear, homeowners insurance covers both your home and belongings should the unexpected happen, like a fire or theft. Home warranty coverage is not insurance.


The home warranty plans in our rating range in price for the most comprehensive plans, starting at $480 and going up to $839 per year. Service fees range from $60 to $150 per visit. However, the plan you choose will determine what services you have and how much you pay.


Home warranty companies sell warranties directly to the public. In addition, real estate brokers often have relationships with home warranty providers and sell the policies to their clients. Some home inspectors might also offer a warranty. For example, inspectors associated with the International Association of Certified Home Inspectors can offer an American Home Warranty product to their clients.


The NHSCA has a home warranty accreditation program, and member companies must comply with state regulations and have a call center available 24/7. Also refer to the Better Business Bureau for company reviews and information, Butts suggests.


Another mistake is expecting the product to work like homeowners insurance. A home warranty specifically covers breakdowns of systems and appliances, while homeowners insurance covers your entire home in case of an unexpected peril like fire, wind, hail, vandalism, or theft. So, if your air conditioner is damaged by hail during a storm, your home warranty won't cover repairs or replacement, but your homeowners insurance might.


Some consumers overlook the charge limits on home warranties. Be sure to review this information in the fine print so you understand how much the home warranty company will cover for service, repairs, and replacements.


The average cost of a basic home warranty costs $400 to $550 per year. Service calls usually cost $60 to $100. Some companies will return all or a portion of the trade service fee if a professional doesn't arrive within a specific amount of time, such as within 30 or 60 days.


From minimal to maximum coverage, 2-10 HBW is a home warranty company that wants you to personalize your plan. No one knows your needs better than you. 2-10 HBW can help you find the home warranty coverage for your needs.


A home warranty is excellent annual investment if you want to save time, money, and frustration when major systems and appliances break down. But there are some common misconceptions about what a home warranty does.


Homeowners insurance covers things like fire, theft, and weather damage. A home warranty covers system and appliance breakdowns caused by routine wear and tear. Learn more about why homeowners insurance plus a home warranty is such a winning combination.


Additionally, all home warranty companies have dollar limits on coverage. However, with 2-10 HBW, you know exactly what those limits and exclusions are, because we include them clearly in our service agreements. Additionally, we offer coverage options that can let you increase dollar limits if you choose.


The This Old House Reviews Team backs up our home warranty ratings and recommendations with a detailed rating methodology to objectively score each provider. We conduct research by speaking with company representatives, requesting quotes, analyzing sample contracts from each company, and conducting focus groups and consumer surveys. We then score each provider against our review standards for coverage, value, trustworthiness and transparency, availability, and customer service to arrive at a final score out of 100.


For a seller, purchasing a home warranty provides coverage if a system or appliance breaks before closing on the house. A seller might also purchase a warranty as an incentive for a buyer. However, less expensive appliances, like countertop microwaves and ice machines, are not covered under these warranties.


Different plans offered by home warranty companies cover different appliances and systems, so make sure to be thorough when deciding if a home warranty is right for you. Many warranties will not cover certain damages, like roofs, while others include added coverage for systems, like pool spas. Whether the cost of a home warranty is worth it will depend on your home and the coverages listed in the contract.


A common myth is that you can only buy a home warranty through a real estate transaction, by buying a house, but that just simply is not true! Although that is where many home warranties are purchased, you can buy a home warranty at any time with any house!


A home warranty with Landmark only covers systems and appliances that were in working order prior to the purchase of the home warranty. In order to maintain coverage, you need to make sure that you are properly maintaining your appliances.


Input your information and get a free, personalized home warranty quote. You can customize the coverage and pricing to fit your needs. Experience what over 70,000 homeowners already know: A Landmark Home Warranty helps provide protection for your home and budget!


When considering a home warranty, make sure it covers the major appliances and systems in your house. More importantly, understand the exclusions, conditions, and limitations. Lastly, you do not want to pay for coverage you do not need. For example, a warranty that covers air conditioning and a swimming pool generally will cost more than a warranty that does not. It will not make sense to buy the more expensive warranty if you do not have AC or a pool. Please read the contract closely before buying and contact the Department of Insurance if you have questions.


A home warranty is not an insurance policy. However, for the protection of consumers, home warranty companies are regulated and licensed by the California Department of Insurance. Please check the license status of a home warranty company prior to purchasing a contract. To verify the license status, you can call us at 1-800-927-4357. A list of licensed Home Protection Companies can also be found on our Website, along with a summary of consumer complaints that the Department has investigated.


Home warranties are an essential purchase for homebuyers. Protects your investment by covering repairs and maintenance. Home warranties are particularly important for homeowners who are purchasing new homes; or who are in other ways putting a lot of money into their homes. Home warranties are not created equally. Make sure you choose a home warranty that best meets your needs at a good price. Investing in a home warranty is one of the best ways to protect your investment; and keep your home running smoothly and efficiently.


Team Nelson is a team of professional Flower Mound real estate agents providing guidance for those looking to buy or sell a home in the North Texas area. Give us a call with your questions regarding a home warranty, or let us help you find your dream home today! 041b061a72


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