Home Warranty
Learn the importance of what is known as a home warranty.
If you are first time homebuyer, then it is valuable to obtain a home warranty that gives you ultimate peace of mind. Home warranty is typically a service contract that covers the repair expenses caused by the breakdowns of home appliances.
Either you or your seller can pay home warranty coverage. In most of the cases, the seller pays for the coverage, as it is a seller benefit. In fact, home warranty is a guarantee given by the seller to the buyer that assures the quality of construction. Some real estate agents may also give a home warranty as a gift at closing.
It is possible to cover most of the appliances like air conditioning, water heater, garbage disposal, electrical systems, telephone wiring, furnace, dishwashers etc under Home warranty. The coverage items may vary from state to state. Hence, it is advisable to review the sample contract to know the covered items, terms and conditions.
Home is generally a big investment and unexpected repairs may give you additional financial pressure. Though home warranty cannot prevent any breakdowns in appliances, it can help to cover the repair charges. It is pretty inexpensive, usually ranging from $250 to $400. Some companies even grant discounts and special offers on home warranty coverage.
The companies providing home warranty service are available 24/7. You can therefore approach them in order to diagnose your problem. The home warranty company then calls a provider to fix the problem.
If any appliance is malfunctioning and cannot be repaired, then the company pays the repairing charges and the expenses for installing new appliance depending on the amount of coverage. However, if the repair is caused due to improper maintenance, unusual wear and tear, improper installation etc, then the company may deny payment.
Home warranty relieves you the stress of purchase. It is beneficial to sellers as well. The warranty coverage can make his home more attractive to potential buyers.
