By Mel Dorman, April 28, 2021
Buying a home is a major investment and comes with some important responsibilities. Unlike renters, a homeowner is responsible for the maintenance and upkeep of the home as well as repairing the unexpected problems that can occur.
While we always encourage an inspection when buying a home, the inspector can only verify that certain equipment, such as a furnace, is working at the time of the inspection. What if that same furnace stops working 2 or 3 days after you move in? This exact scenario is why it is a great idea for new buyers to consider a home warranty policy when buying a house!
What is a home warranty?
A home warranty is usually a one-year service contract that covers the repair or replacement of a home’s major systems and appliances. There are many companies and policies to choose from, but all are similar in the way that they operate.
How do they work?
Once a buyer chooses a policy and the home is covered, any problems will be addressed by calling the home warranty company directly. The warranty company will then send a qualified technician to your home to evaluate the problem. The tech will repair the unit or, if the equipment is not repairable, they will replace it with a similar model.
What does it cost?
The cost to the buyer is usually far less than the equipment itself, as they only pay the annual fee as well as a service call fee for each visit. Depending on your location, policy, and the company you choose, this could be as low as $75 per service call.
How to choose a company and policy…
When choosing a home warranty company, it is best to find one that does not require service records or inspection reports because those may not be available. Look for companies that have a great local reputation, are easy to work with, and have a history of being honest and upfront. If you are having trouble choosing a reputable company, be sure to ask your realtor for their top suggestions!
What does a home warranty cover?
Standard coverage depends on the home warranty company. Most include major items such as plumbing system/stoppages, the water heater, heating system, ductwork, the electrical system as well as a variety of smaller items like toilets, garage door openers, attic exhaust fans, doorbells, re-key, etc. As a buyer you also have the power to upgrade or customize your coverage to include appliances like the oven & range, dishwasher, or refrigerator. You can even add on individual options such as roof leak coverage!
For the most accurate and up-to-date information, be sure to contact a home warranty company directly or to visit their site. Sample brochures are readily available on most websites.
Mel Dorman
Broker | OR & WA
She/They
Ten years ago, Melissa was living in a slum in Kolkata, India, helping over 200 women escape sex trafficking by providing alternative work at a social business...
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