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Home Warranty Protection Plans

The last thing a home buyer wants to worry about after closing is what could possibly break or malfunction in her new home. Since that can cover a multitude of items and systems, for peace of mind, it's a good idea to get a home protection plan. It's especially a good idea to obtain a home warranty if you're a first time home buyer with no experience maintaining a home.

Who Pays for the Home Warranty?

Now, whether the seller pays for the home protection plan and home warranty coverage or whether the buyer pays for it, will depend on your local customs. It varies. In many cases, it's normal for a seller to pay for the coverage because it's a seller benefit. Why? Because then the buyer won't be calling the seller after closing if something breaks.

How Much does a Home Warranty Cost?

They are fairly inexpensive, typically ranging from $350 to $550, depending on type of coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

How Do They Work?

Although specific plans provide for specific types of coverage, most operate the same way.

  • If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
  • The home warranty company calls a provider with which it has a business arrangement.
  • The specific provider calls the home owner to make an appointment.
  • The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
  • The home owner pays a small trade service fee (less than $100).

Types of Coverage

Because all plans differ, you will want to ask specifically what is covered. Ask your real estate agent if upgrades are available. Pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations.

What If I Disagree With the Diagnosis?

Sometimes a service provider will deny a claim. (See below.) If that happens or if you are unhappy with the service provided, call your real estate agent and complain. Your real estate agent, if she has a good working relationship with the representative from the home warranty company that is covering your home, well, she can seek resolution for you. I call my rep, and he/she eventually finds a way to work out a solution acceptable to all the parties involved.

In short, don't take "no" for an answer.

What is Not Covered? 

  • Outdoor items such as sprinklers
  • Faucet repairs are not covered under all plans
  • Not all plans pay for refrigerators, washers & dryers or garage door openers. These are extra items that you can add to your coverage if you so choose.
  • Spa or pools, unless specific coverage requested
  • Permit fees
  • Haul aways

What Can Cause Denial of Payment? 

  • Improper maintenance
  • Various code violations
  • Unusual wear and tear
  • Improper installation

General Coverage 

  • Air conditioning
  • Dishwashers
  • Doorbells
  • Furnace / heating
  • Water heater
  • Ductwork
  • Garbage disposal
  • Inside plumbing stoppages
  • Ceiling Fans
  • Electrical systems
  • Range and oven
  • Telephone wiring

In 2014, The Webb Real Estate Team started to provide all of our Buyer clients with a one year home warranty free of charge at closing. We want to make sure you are protected!

**Contact us today at webb_realestate@yahoo.com or 678-445-7369.  Visit us @ www.WebbRealEstateSVS.com

 

Published Friday, January 24, 2014 8:17 AM by ROGER WEBB & THE WEBB REAL ESTATE TEAM

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