If you’ve ever been involved in any kind of Home Purchase, you’ve probably heard of something called a “Home Warranty”. You may even have one right now on that beautiful home you just bought, but don’t really know what it does or how it works. Many Home Buyers are in the same boat, so hopefully I can help!
A Home Warranty is less like a warranty and more like an Insurance Policy on your Home’s Appliances. Depending on the company, you may be able to purchase coverage for everything from Dishwashers to Spas and everything in between.
On average, Home Warranties cost around $500 per year, depending on the coverage. And when you file a claim on an appliance or system, you’ll likely pay a service fee or “deductible”. This fee, however, is typically going to be much less than the repair itself. Deductibles for most plans average around $100 per incident, but the repair bill for, let’s say, an Air Conditioner could be in the thousands.
So when considering a Home Warranty, research multiple companies. Find one that offers coverage on the items that you have. It doesn’t do much good to have coverage on your air conditioner if you don’t have air conditioning, does it? Also, try to find a plan that complements your Homeowners Insurance. That means that your Home Warranty and your Homeowners Insurance shouldn’t overlap and shouldn’t cover similar components.
Talk to your Real Estate Agent and ask for recommendations for locally represented companies. Having a locally represented company could come in handy with some of the unique circumstances that we Prescottonians may encounter. Imagine trying to tell someone who lives in someplace like Kentucky about the Javelina that chewed on the wires to the Hot Tub. “A Have-a-what?!”
Now, much like your Homeowners Insurance Policy, hopefully you’ll never, ever, ever, have to file a claim. BUT much like Toilet Paper - it’s better to have it and not need it, than need it and not have it.
On the flip side, however, while Home Warranties are great if there’s no existing coverage on your appliances and other systems, if you’re in a newer home and/or have other coverage on your items, the value simply wouldn’t be there to justify that expense.
As with anything related to Real Estate, talk to your Real Estate Agent and do your research. Then determine which, if any, Home Warranty provider is right for your “new to you” home.
For more information and recommendations on great locally represented Home Warranty companies, or for help finding your Dream Home so you have a reason to buy a Home Warranty, call me, Christine Sirochman, Your Real Estate Concierge at (928) 848-8830.
