Benefits of Home Warranty Coverage

To the Seller:
• Home may sell faster and at a higher price.
• Optional coverage during the listing period.
• Protection from after-sale legal disputes.
• Increases marketability of home.
To the Buyer:
• Warranty coverage on major systems and built-in appliances.
• Protects your cash flow.
• Puts a complete network of qualified service technicians at your fingertips.
• Low deductible

Here's a general description of how home warranty protection plans work:

You pay an annual premium for coverage.
When a repair is needed you call the plan's service provider 24 hours a day, 7 days a week.
An authorized service contractor comes to your home.
You pay a small service fee - typically in the range of $35 to $50 - and the contractor makes the repairs or recommends the appliance be replaced.

What does a home warranty protection plan cover?

Each company's plan has different lists of what is covered. Check your specific policy for a full description.

Most plans offer repair or replacement coverage for a home's:

• Heating system and ductwork
• Plumbing
• Electrical systems

The following major appliances may also be included:

• Dishwasher
• Water heater
• Range, oven and stove

Home warranty protection plans may offer different levels of coverage. For example, by paying a higher annual premium, you may also cover things like air conditioning, clothes washer and dryer and even swimming pool equipment.

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Home Inspections
If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the sale is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you are not comfortable with what he finds, you should cancel the sale.

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