What is Covered Under Home
The last thing a home buyer wants
to worry about after closing is what could
possibly break or malfunction in their new home.
Since that can cover a multitude of items and
systems, for peace of mind, it's a good idea to
get a home protection plan. It's especially a good
idea to obtain a home warranty if you're a
first-time home buyer with no experience
maintaining a home.
Who Pays for the Home
Now, whether the seller pays for
the home protection plan and home warranty
coverage or whether the buyer pays for it, will
depend on your local customs. It varies. In many
locales, it's normal for a seller to pay for the
coverage because it's a seller benefit. Why?
Because then the buyer won't be calling the seller
after closing if something breaks.
How Much does a Home Warranty
They are fairly inexpensive,
typically ranging from $250 to $400, depending on
coverage. Home warranty companies sometimes run
special sales and either discount policy prices or
offer additional coverage for the same price. The
policies are prepaid for a year in advance, at
which time they expire or can be renewed.
Although specific plans provide
for specific types of coverage, most operate the
- If a home system or appliance breaks or
stops working, the home owner calls the home
- The home warranty company calls a provider
with which it has a business arrangement.
- The specific provider calls the home owner
to make an appointment.
- The provider fixes the problem. If an
appliance is malfunctioning and cannot be
repaired, depending on contract coverage, the
home warranty company will pay to replace and
install the appliance.
- The home owner pays a small trade service
fee (less than $100).
Types of Coverage
Because all plans differ, you will want to
ask specifically what is covered. Ask your real
estate agent if upgrades are available. Pay close
attention to whether the home warranty company
will pay for repairs to make certain types of
systems or appliances compliant with new
Outdoor items such as sprinklers
repairs are not covered under all plans
all plans pay for refrigerators, washers &
dryers or garage dooropeners
Spa or pools,
unless specific coverage requested
What Can Cause Denial of
Unusual wear and tear
Furnace / heating
Inside plumbing stoppages
Range and oven
Because coverages vary from state to state
and from policy to policy, ask to see a sample
copy of a policy before you commit.