Why purchase a Home Warranty? Preferred Vendor Part IV
Home warranties are designed to cover the major systems in a home. Major plumbing, electrical, air conditioning and heating systems and built in appliances are covered for repair or replacement by most reputable home warranty companies. Additional coverage may also be purchased such as pool coverage and washer, dryer and refrigerator coverage.
Unlike homeowners insurance, home warranties have much lower deductibles and the actual premiums are much lower. The deductibles range anywhere from $55-75 and the premiums average $400-450 for Standard Plans annually.
Why puchase a Home Warranty? Home warranties can save homeowners hundreds if not thousands of dollars in unexpected costly repairs and replacements to major systems in their homes. Standard hot water heaters cost anywhere from $600-800 with labor. If an entire air conditioning system needs to be replaced a homeowner could be looking at $5000-$6,000 if they do not have a home warranty in place.
Home warranties do not always need to be purchased through an escrow. A few companies sell the plans to homeowners living in existing homes not involved in a real estate transaction. Contact your Realtor for details.
When researching home warranty, plans always do proper research. How long has the company been in business? Are they a regulated company putting aside proper reserves to pay their claims? Read all terms and conditions as all home warranty companies are a bit different in their coverage.
Why purchase a Home Warranty? Preferred Vendor Part IV
Some things to look out for are:
(1) Does the company have a 30 day wait prior to placing a claim?
(2) Does the company depreciate systems or have age restriction clauses?
(3) Do they cover the 410A mandate with respect to air conditioning systems?
(4) Are they on a repair or replace policy?
Your Realtor is always a great source in directing you to locate a reputable home warranty company. Most Realtors highly recommend home warranties to save their clients on unexpected costly repairs and replacements to systems and appliances which can arise in any home.
For more information feel free to contact Yvette Myer, Senior Account Executive with Old Republic Home Protection (480) 244-8485. Click here for more information. PLEASE TELL HER SHANNA DAY SENT YOU! :)
Why purchase a Home Warranty? Preferred Vendor Part IV
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