First-Time Home Buyers Should Purchase A Home Warranty!

Posted by: najirashid on Sunday, June 29th, 2008

Some of my first-time home buyers have heard of a “home warranty” but are not clear on what it covers or if they need one. I think all first-time home buyers should purchase a home warranty unless they are receiving one paid for by the seller, or there is another warranty plan in place to cover major systems in the home. A home warranty is a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract.

The price of a home warranty is usually around $400. You should check different home warranty policies to see which items are covered and if the policy covers the full replacement cost of an item. Some of the companies I know will cover full replacement on some items. AHS which stands for American Home Shield actually replaced a furnace for one of my clients within a few months of their purchase. also most policies are renewable after the first year. Many first-time home buyers use a large portion of their savings to purchase their first home and will not be in a position to replace or repair a major system in their home. This is why a home warranty is a good peace of mind policy. Many of my clients tell me they sleep better because of it. Some of the items a home warranty will cover are;

Plumbing, electrical systems, furnace, water heater, heating ducts, water pump, diswasher, garbage disposal, stove/cooktop/ovens, microwave, refrigerator, washer/dryer. Some home warranty companies charge extra to cover some of the items listed.

Topics: Buyers, First-Time Home Buyers

One Response to “First-Time Home Buyers Should Purchase A Home Warranty!”

STEven Says:
August 1st, 2008 at 11:52 AM

Yea i purchased a home warranty with my new home from home warranty and I am so glad I did our AC went out they came out made repairs same day of making a claim!

Thanx!
Steven

 

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