Your Complete Guide to Understanding Home Warranties

Sep 23, 2022

Home emergencies happen, and there is no exception. Anyone who’s had their AC bust in the heart of summer knows that trouble can arrive at the worst of times. While you cannot stop bad things from happening, you can be prepared for the worst with a home warranty. From your water heater to your refrigerator, you can put a policy in place and ensure that help is just a phone call away.

  1. “I have home insurance, why do I need a home warranty too?”

A home warranty isn’t the same as homeowner’s insurance. While they both cover home repair costs, they couldn’t be more night and day in the coverage that they provide. First, homeowner’s insurance covers catastrophes like fire, earthquakes, and burst water pipes. Meanwhile, a home warranty covers the repair and replacement of internal systems in your home such as: electrical, HVAC, plumbing, water heater, and other appliances

  1. “What does it mean when they say that home warranties cover your home’s main systems?”

Your warranty varies by plan coverage. Just like your homeowners’ insurance policies, home warranties come with rules and restrictions. It’s up to you to read your policy options carefully and select what is best for your home.

  1. “Do we need to play up the home warranties I have when selling my home?”

No, when selling, you don’t need to emphasize a home warranty, but it will come in handy later. Home warranties can play a key role, especially in hot markets. Not only will they provide you with protection should anything break before your home sale closes, they can be a powerful tool to use during negotiations once you’ve accepted an offer. After all, having a home warranty will give the buyer peace of mind. Should anything go wrong with the warrantied appliance after making their major life purchase – the new home – the home warranty will cover the bulk of the expenses. That could be just what you need to convert someone on the edge to become a buyer, since they don’t want to incur any additional unexpected expenses so close to the home purchase.

  1. “What does it cost for a home warranty?”

Most home warranties are typically 12-month contracts that cost between $500-$850 per year. More expensive plans can cost up to $1,700 annually. Additionally, you will be required to pay a service fee of approximately $60- $135 each time you call a contractor to come to make any repairs (this fee is nominal when you compare it to hiring an experienced contractor, plumber, or electrician).

Tip: Since service fees are per visit, it’s smart to have a list created of all issues that need attention in one go. Most home warranties send out contractors who can service multiple areas of the home.

Should you have any questions about home warranties, their role in the marketing of a home, or anything else regarding the home selling or buying process – or even need a referral to help with your home maintenance needs – please feel free to reach out to the Jackie Mack & More team. We’re here to help make your home selling or home buying as painless and stress free as possible. We look forward to the opportunity to serve you.

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