As you go through the final steps of buying your home, the last thing you'll probably deal with is the subject of purchasing a home warranty. The purpose of these warranties is to repair and replace covered items in your home that malfunction. If you think your home could use the protection of a warranty, make sure you apply for one before the close of escrow.
A home warranty is designed to repair and replace certain mechanical systems and built in appliances in your house, such as the plumbing, furnace, and electrical wiring. For an additional fee, you can add coverage for the air conditioner, jacuzzi, swimming pool, and roof. If you should have a malfunction with any of these, you can call your warranty company to check it out. If the insurance company deems the repair is a covered benefit, you'll pay a flat fee for parts and labor which ranges between $60.00 to $100.
Unfortunately, it's easy to spend hours researching all the homeowner complaints filed against home warranty businesses. Many policy owners are as surprised to learn about the pre-existing clause in many warranties exclude repairs on any pre-existing problems. If you find a policy with this exclusion, make sure you're aware the policy will provide coverage only for new problems.
You should also check to see if the policy has additional exclusions that prevent coverage due to poor maintenance or servicing, wrong installations, and inaccessible areas of the property. There are some policies that exclude repairs until you cover the cost to bring an outdated system up to current building standards. You should also note that many warranties only provide service for items failing as a result of normal wear and tear.
If you shop around, you'll discover most warranty policies are priced somewhere between $300 to $1000 per year depending on the home size and type of benefits you choose. As you search for your new home, you'll find most sellers willing to include the first year of coverage as a gift for buying their home. Even your agent may even be willing to pay for the first year so you'll be satisfied with their service.
But if you have to cover the full cost of the home warranty policy, you're probably smarter if you invest money each month towards an annual repair fund to cover unplanned repair problems. You should aim for a goal of $5000 each year to cover future repairs.
While there may be many homeowners dissatisfied with their policies, you will find some policyholders happy with their warranty. If you happen to get a repair person who is understanding and gets your repair approved, you'll benefit from having a policy. Make sure you study each warranty thoroughly and check out the exclusion clauses.
If your state has a government agency which regulates home warranties, check the complete record of a company you want to sign up for.
A home warranty is designed to repair and replace certain mechanical systems and built in appliances in your house, such as the plumbing, furnace, and electrical wiring. For an additional fee, you can add coverage for the air conditioner, jacuzzi, swimming pool, and roof. If you should have a malfunction with any of these, you can call your warranty company to check it out. If the insurance company deems the repair is a covered benefit, you'll pay a flat fee for parts and labor which ranges between $60.00 to $100.
Unfortunately, it's easy to spend hours researching all the homeowner complaints filed against home warranty businesses. Many policy owners are as surprised to learn about the pre-existing clause in many warranties exclude repairs on any pre-existing problems. If you find a policy with this exclusion, make sure you're aware the policy will provide coverage only for new problems.
You should also check to see if the policy has additional exclusions that prevent coverage due to poor maintenance or servicing, wrong installations, and inaccessible areas of the property. There are some policies that exclude repairs until you cover the cost to bring an outdated system up to current building standards. You should also note that many warranties only provide service for items failing as a result of normal wear and tear.
If you shop around, you'll discover most warranty policies are priced somewhere between $300 to $1000 per year depending on the home size and type of benefits you choose. As you search for your new home, you'll find most sellers willing to include the first year of coverage as a gift for buying their home. Even your agent may even be willing to pay for the first year so you'll be satisfied with their service.
But if you have to cover the full cost of the home warranty policy, you're probably smarter if you invest money each month towards an annual repair fund to cover unplanned repair problems. You should aim for a goal of $5000 each year to cover future repairs.
While there may be many homeowners dissatisfied with their policies, you will find some policyholders happy with their warranty. If you happen to get a repair person who is understanding and gets your repair approved, you'll benefit from having a policy. Make sure you study each warranty thoroughly and check out the exclusion clauses.
If your state has a government agency which regulates home warranties, check the complete record of a company you want to sign up for.
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