When purchasing a new home, a home warranty is often part of the offer package. A home warranty is a contract that helps cover costs of repair or replacement of some home systems and appliances. A home warranty might be right for you if you’re purchasing a home with older systems and appliances.
Do Your Homework
There are a variety of home warranties available at a variety of price points. Researching many different companies and the types of warranties that they offer, so homebuyers should research the available offers. Each type of warranty offers a detailed list of inclusions and exclusions and it’s important to be very familiar with these details before making a commitment.
What is covered?
Most home warranties cover systems, appliances, pools, water lines, or any combination of these. Details may include pieces and parts of each appliance or system, so reading into these is critical for your understanding of your warranty. Systems may include:
Electrical
Plumbing
HVAC
Refrigerator
Dishwasher
Stove/Oven
Microwave
Washer & Dryer
Gas Lines
Sewer Lines
What are the fees?
There are two main fee types associated with a home warranty. The first is your monthly premium – or the amount paid each month to be protected by the contract. The more items that are included in your coverage, the higher the monthly premium will likely be. The second type of fee is the service fee. These are fees associated with having your systems or appliances looked at by a local professional. The service fees are similar to a deductible that you would pay with your insurance.
To learn more about Merit Real Estate at the services we provide, visit www.MeritRealEstate.com or call (310) 379-4444.
Does Home Warranty Save You Money?
