Home Warranty = Peace of Mind

After months of planning and hard work, you have just sold your house. You put your cash into a new beautiful home, and complete the arduous task of moving in. Now, you can put your feet up on the couch, open your favorite beverage and enjoy the afternoon football game. Just then, the phone rings. To your surprise, the buyer of your old home is talking your ear off about how the dishwasher broke and flooded the kitchen. Can you rest easy that the burden of this mishap will not fall on your shoulders? If you negotiated a home warranty for your buyer through closing, then the answer is yes.

The last thing you want to worry about after you sell your home is what could malfunction or break. A home warranty plan will protect both the buyer and the seller in the even of an unexpected repair. Depending on negotiations made through a sales transaction, the cost of the policy can be paid by either the buyer or the seller, or they can split the cost. The cost varies, but it is usually between $350-$450. The term of the policy can also vary, but the most common is a one-year policy with a renewable option. Basic coverage in most plans includes heating, plumbing, electrical, and major appliances such as your water heater, oven, built-in microwave, dishwasher and garbage disposal. Some warranties will cover your roof, and others will require an additional fee to cover items such as septic systems, pools or spas. Be sure to read the policy carefully and ask questions if something is not clear. For a referral to a good company, you can contact me.

Most home warranty plans work the same way with regards to a repair. If an appliance stops working, the homeowner will call the home warranty company. The home warranty company will send out a provider or contractor with whom they do business. The provider will contact the homeowner to make an appointment. If the appliance can be fixed, the provider will do that. If the appliance must be replaced, the home warranty company will install and replace the appliance. The homeowner will pay a small trade service fee for the repair or replacement, and it is most often between $50-$75.

So sit back and enjoy the game. Purchasing a home warranty can be a big home run!