I've had a number of Buyer clients with appliance issues after the close of escrow. At the first sign of trouble with appliances (heating, plumbing, air conditioning, dishwasher, refrigerator, electrical, etc.), it is important to call your home warranty company right away and see if your warranty covers the issue. If not, ask them what it would cost to upgrade your plan & if it's possible to upgrade at that time. Caution: if you call a service provider (plumber, electrician, appliance repair, etc.) on your own and they do the repairs, then you will not be reimbursed by the warranty company for any charges incurred.
Your home owner's insurance will likely insure against natural disasters such as fire and flood but will not usually cover maintenance and repair charges. In a purchase transaction, sellers will sometimes pay for the first year of your warranty (usually the "basic coverage"), after which you can renew annually if you choose. If the sellers did not pay for coverage, it is a good idea for you to do so. I recommend it, because if you have a plumbing issue that may cost you $3,000 with no warranty you could be covered for the annual fee and the service call fee (prices & service call fees vary by company; the warranty runs from approx. $250-$700 depending on square footage of the home, and the service call fees range from about $75-$120). Even if you've been in your home for many years without coverage, I recommend you get one.
Case in point: I had a room air conditioner on the first condo I ever bought, which was old but still in working condition when I moved in. It broke within the first few months of moving in. I called the home warranty company, and when they came out they determined they couldn't repair it and needed to be replaced. It was covered under the home warranty; all I paid was the service call fee and the warranty took care of the rest! I was happy not to have to fork over money out of my own pocket.
Sellers: if you're listing your property, I highly highly recommend getting a Seller's Home Warranty. Should anything that is covered break down during the escrow period, you won't have to worry! I've had this happen before where the garage door broke during the listing period and the warranty covered it. My sellers were grateful they didn't have to pay anything more than they had to.
Here's a helpful article about Home Warranty Reviews. Here are a some reliable Home Warranty companies, feel free to call them for more information. Also note that some of the following reps may/may not still be with the same company; if not, you can always call the 800 direct number found on the company website):
- First American Home Warranty--local rep: Kara Wilkins, cell 310-617-5486, kawilkins@first.am.com
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Fidelity National Home Warranty--local rep: Suzy Pelshaw 800-308-1424 Ext. 3409 suzy.pelshaw@fnf.com
- American Home Shield--local rep: Nikki DeProsperis, cell 714-330-9739, ndeprosperis@ahslink.com
- Old Republic Home Protection--local rep: Kristi Buscemi, cell 424-207-9906 kristib@orph.com
If you have any questions, I'll be happy to help you or direct you to the appropriate sources.
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