Do you really need a Home Warranty?

Every home needs protection. At some point during the course of owning your home, you will need to replace, clean or repair appliances and other structures. A home warranty will help you to pay those costs when things break down. As a matter of fact, a good home warranty can be a new home buyer's best friend. A comprehensive plan will cover the structure of the home and appliances should something go wrong with them. This is especially good news when buying an older home or one that was not built specifically for you.

A home buyer can negotiate the purchase of a home warranty plan. Sellers may pay for the plan as a way of getting an amount closer to their asking price for the home. Or, both parties could go fifty-fifty on a policy. It often depends on what's typically done in your area. Most sellers don't want to have to deal with calls from buyers about broken appliances after the closing. They might very well pay for the plan just to avoid this. <>Home warranty policies can cost several hundred dollars or more, which is not all that expensive when compared to the cost of some home repairs. You might even find a warranty company when they're running a sale and get a discount on a yearly plan. Home warranties are paid a year at a time and can be renewed when they expire.

Typically, this is how a home warranty plan works when something is in need of repair: when a covered appliance stops working, the buyer calls the warranty company. They describe the trouble and the warranty company then contacts a repair person who can handle the problem. The repair person contacts the buyer to set up an appointment. The repair person will fix the problem if they can; if not, the item will be replaced according to the terms of coverage. A service fee is assessed by the repair person for the buyer to pay.

Systems that are usually covered by a general home warranty include heaters, air conditioning and heating systems, roofing, duct work, ceiling fans, electrical wiring, plumbing, refrigerators, stoves, dishwashers, garbage disposals, telephone wiring, doorbells and other items. However, anything that's included in the plan might still be denied coverage (in certain circumstances), and you'll find yourself liable for charges incurred for any services performed. If that happens, contact your real estate agent immediately and tell him or her about the entire situation. The representative for your agent will contact the warranty company to (hopefully) straighten out the problem and come to some sort of agreement.

Some instances where coverage may be denied include if the homebuyer installed an item themselves and did a poor job at it, thereby invalidating its warranty; or, if it's determined that an appliance was improperly maintained or violated a safety code. Check your coverage and upgrade for your needs if necessary. If you follow all suggested uses for the item and allow only professionals to do all installations, it's likely that you'll be well-covered when something breaks down.

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