Is buying a home warranty a good idea?

By
Real Estate Agent with the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Q:  We are getting ready to buy a home and wonder if having a home warranty would be a good idea?   What do you think?   Is it expensive?

Home WarrantyWe do recommend home warranty insurance, and we could help 
you determine which company offers the best coverage for the home you have in mind.  A home warranty can be very useful for those buying older homes on the Treasure Coast of Florida. In fact for many of our customers we will pay for the first year of your home warranty should you want it.

The home warranty insurance is fairly inexpensive, typically ranging from $250 to $400 a year, depending on the coverage you want. When a repair or replacement is necessary, the homeowner pays a trade fee, which is usually less than $100.

It pays all or part of the cost to repair or replace an item in your newly purchased home. Usually, the item will be replaced if the contractor hired by the company has determined that it's not repairable.

Because the last thing you want to worry about after closing on a home is what could break or malfunction, the insurance is a good idea. There are several warranty plans to choose from. Before choosing, it's important to make a list of each appliance and system that you want covered.

The National Home Service Contract Association, a nonprofit industry organization, says the best way to ensure a positive experience is for the company to provide the customer with clearly defined expectations of what a contract will cover.

For a quick reference remember the word PEACH: Plumbing, Electrical, Appliances, Cooling and Heating. Basic coverage does not include such things as the roof, windows, termite damage, or pre-existing conditions.

Sometimes the seller pays for the warranty coverage. It's to the seller's advantage to do so because it's a selling point. Further, the seller knows the new owner won't be calling after the closing if something breaks.

The policies are prepaid for a year in advance, at which time they expire or they can be renewed. Sometimes warranty companies compete with each other by offering discounted sales.



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Topic:
Home Buying
Location:
Florida Martin County
Groups:
1st Time Buyers
Advice for Buyers
Hyper-Local
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home warranty

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Rainmaker
738,048
Gabrielle Kamahele Rhind
Broker/Owner
KGC Properties LLC, Tucson Property Management & Real Estate

GOOD MORNING GABE!  Real estate pros get asked this question alot!  It is critical to make sure clients know what is and isn't covered with a home warranty and if they purchase one to make sure it suits their specific needs! -- G

February 19, 2011 08:29 AM
Rainmaker
747,185
Carol Zingone
Global Realtor Based in Jax Beach, FL
Berkshire Hathaway Home Services Florida Network Realty

Home warranties can certainly help a buyer feel more comfortable about making a committment to a house.

February 19, 2011 08:40 AM
Ambassador
1,470,983
Renée Burrows
Las Vegas Real Estate Broker - www.urLVhome.com
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate

Very thorough explanation on WHY one should think about a home warranty!  You knocked the ball out of the park Gabe!

February 19, 2011 02:42 PM
Rainer
171,441
Jeffrey Markell
REALTOR Broker/Investor - Residential Real Estate
Realty Benefit

Well written Gabe. I'm a big believer in home warranty protection. It does help when they can choose which appliances and systems to cover.

February 19, 2011 07:33 PM
Rainmaker
591,494
Laura Giannotta
Your Realtor Down the Shore!
Keller Williams Realty - Atlantic Shore

I've had some bad experiences with home warranty companies.  I've found a new one, and hope my clients luck will be better with this one!  Good post Gabe!

February 21, 2011 07:14 AM
Anonymous
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Rainmaker
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Gabe Sanders

Stuart Florida Real Estate
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