Why A Home Warranty
The right home warranty company ensures continuous protection for your home and your chedk book.
Appliances and systems don't last forever. Even a new home can have an appliance failure. The warranty on appliance on a new home do not start with the date you purchase a new home but the date installed by the builder. Most appliance warranties are for 1 year.
If you did not negotiate for a home warranty paid for by the seller, wait until the home inspection and get the home inspector's opinion on the appliance and then make a decision if you want to purchase one at closing ore after closing.
Who Pays for the Home Warranty?
In Saint Johns County most homes are sold without a home warranty that the seller will pay for. However, a buyer may ask for a home warranty in the purchase and sales agreement. That paragraph is standard. If the seller will NOT pay for one, the buyer at the buyers expense at closing can obtain one. Keep in mind that if the seller is paying, the seller chooses the home warranty company. That too is negotiable.
How Much Does a Home Warranty Cost?
They are fairly inexpensive, typically ranging from $300 to $500, depending on coverage. Home warranty companies sometimes run special sales or advertise a discounted policy price or offer benefits. Policies are prepaid for a year in advance. When they expire they can be renewed by the homeowner usually for a little more than the original price.
How Do They Work?
Although specific plans provide for specific types of coverage, most operate in a similar manner and contain common verbiage.
If a home system or appliance breaks or stops working, the homeowner calls the home warranty company.
The home warranty company calls a provider in the area that they have arrangements with.
The provider calls the homeowner 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 homeowner then pays a small trade service fee for the visit that will vary with the plan you choose but normally less than $90.
Types of Coverage
Because plans differ, see specifically what is covered. Many plans have options or upgrades. For example, most basic plans do not cover the refrigerator. Also, most plans have a choice on the cost of the service call with the lower price costing more for the plan.
What If I Disagree With the Outcome?
What if a service provider denies a claim. If that occurs or you are not happy with the service provided, call your real estate agent and let him/her know what the problem is. Many of the home warranty reps come to our office and tell us about their programs so I do have local contact info and have met the rep. Sometimes a call to the rep can solve the issue.
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
Spa or pools, unless specific coverage requested
Items are broken prior to closing
Exclusions noted in the policy