What is a Home Warranty Plan?
A home warranty plan is a must when purchasing your home and should be included in your purchase contract to protect you against costly repairs that come up after you move-in and were not issues during the home inspection. A home warranty plan as part of your purchase usually covers you for one full year and there are different coverage options. You should discuss the options with your broker and obtain a quote on the different plan options for your home of interest in order to include in your purchase agreement.
What’s covered?
A home warranty, such as one with American Home Shield (other providers available) covers the home systems and appliances. A warranty covers items like your HVAC, water heater, electrical, dishwasher, oven, and more. A home warranty plan does not require maintenance records before activating as part of your home purchase and the age of the appliances does not matter.
The Repair Process
- Start a request online or by phone
- A professional contractor is assigned
- Determine whether item is covered by home warranty, if so it will be fixed or replaced if cannot be repaired
- Follow up occurs to ensure the issue is resolved
Why include a home warranty in your purchase agreement?
Peace of mind is the biggest reason. Last thing you want to occur after move-in or early on in your new home is an expensive repair. Having the home warranty plan will allow you to contact the warranty provider and they will provide a trusted technician to come out and inspect and repair the issue versus you having to hunt down someone who is trustworthy and having to pay the cost.
Home Warranty vs. Homeowners Insurance
Homeowners Insurance covers things that might happen:
- Theft
- Fire
- Storm damage
Home warranty covers things that will happen:
- HVAC stops working
- Water leaks
- Dishwasher stops working
- Toilet overflows
Maintenance programs
Many home warranty plans offer maintenance programs at a discounted cost, such as having your HVAC inspected and cleaned.