What Is a Home Warranty?
A home warranty policy may be offered by a seller or purchased by a buyer. Underwritten by national companies with local service contracts, a home warranty may reduce the expense of major repair or replacement caused by unexpected mechanical failure of a major system or appliance.
For a moderate premium (usually in the $400 range for a basic policy), you can acquire a policy which protects your for one full year after closing from major repair or replacement bills.
Most policies have a $50 to $100 deductible, and you must call the underwriting company for repairs. They arrange to dispatch a local service professional for the specific problem.
The age of the home should be a consideration as to purchase a warranty or not – a 15 year old home with original equipment might be more likely to need repairs, such as roof, furnace or appliances, than a two year old home. In new homes, there are usually builder and manufacturer warranties that cover what is contained in a standard home warranty.
GreenRoads Santa Fe’s Buyers Agents can provide names of the national companies that offer these policies with local service providers.
Comments on this entry are closed.