subject: Read Your Home Warranties Carefully [print this page] Read Your Home Warranties Carefully Read Your Home Warranties Carefully
Home Warranties are mostly one year service contract which protects homeowners against the cost of unexpected replacements and repairs of some costly and expensive home systems and appliances that can break from normal usage. Home warranties provide protection against your home heating and cooling system, plumbing system electrical system, water heater and all major appliances. Home warranty also includes some optional warranties such as roof, well pumps, swimming pools and spas.
How Much Do They Cost of home warranties? The cost for basic one-year home warranty ranges from $350 to $450 include with the optional coverage is per added item such as pool, spa or well pump. This fee is usually $50 to $100. The warranty provider companies collect the cost of repair above that amount. So as a buyer, use it as a negotiation device in a purchase contract.
Many states have different policies and laws for Home warranties. In some areas, state law allows you to take legal action builders for general defects for up to four years after the home is completed. You can also hold the builder liable for hidden defects on major components for ten years. Now if the law says the builder must pay then why would you need the home warranties? There are many warranty products being offered on existing homes and you should be careful with these products.
You should start by checking with your state's Department of Insurance. The department controls the whole insurance companies. They will be guiding you whether or not a particular home warranty company is in compliance with the state regulations. Many people advice you that you should waste your money on Home Warranties for resale homes. You will often find that sellers offer Home Warranties. The warranty is not an acceptable substitute for a professional home inspection. If the seller pays for the insurance, then it is fine. But if you are asked to pay for the insurance then you need to think seriously about it. Not only will you spend a couple of hundred of dollars for the plan, you will pay around a $70 deductible every time someone comes out to look at a problem.
If you are thinking about taking out a home warranty on your new purchase, you may ask some of your friends and family members for referrals. You want to search out a reliable company with a good track record of happy customers. So it is recommended to you shop around, look at price, service fees, coverage and company stability. You should look at all of the costs that you will have to pay along with the coverage amounts. It is also recommended to make sure about the coverage is applicable to your home. You do not want the policy to be voided if your home is too old. If you want to purchase home warranty plan then go ahead and enjoy the benefits from the coverage of Home Warranties otherwise you will lost your money.
