I am surprised to find that most Homeowners are not aware of the Home Protection Policy that they can place on their home for a nominal fee. Even if you have a "do it your selfer" living with you, Placing a home protection on your property is worth it's weight in gold.

                Picture courtesy ofgoogle images-buffaloexterminating.com

A Home Protection Policy cost is around $550.00 for a year depending on if you have Central Air, Pool, or Roof Coverage, this can cost more. If you want roof coverage be awre that it is only for a $1000.00 maximum of roof repairs and plumbling also covers usually only the 1st 25 feet around your home.  Each company varies.

This is like an insurance policy and the company is making their money by banking on the fact that you won't need the protection.

The Positive If your home was built from 1950-1995, trust me, you will need them and you will save $$$.

Example: On my 1959 home I had a water heater that was not working, I was getting very little hot water. Maybe 2 loads of laundry and 2 showers and we had cold water.

Ok, so my water heater was in need of replacing.  I called the Home Protection Company and for a $50.00 service call, they replaced my water heater.

That would have cost me $450.00 to replace.

That same year my dishwasher broke and they came out to fix it. The dishwasher was a case of fix it or replace it. The service man told me that if he fixed it , it would last maybe another 1-2 years so I opted for the replacement cost which was a cash credit of $250.00 and then I upgraded my dishwasher to a new Kitchen Aid and paid the difference of the $500.00 myself.

Nest year my central air went out.  My husband forgot about our policy and called a local heating and air, they gave me a quote of $3000.00 to fix my central air. I called the Home Protection and they charged me $50.00 for the service call and I paid $75.00 for the Freon

Ok so the 1st year I paid $550.00

                                            150.00 for 3 service calls

                                            $700.00 Total Cost

I received     $450.00 New Water Heater

                    $250.00 Dishwasher Credit

                    $150.00 Plumbing call Toilet

                    $100.00   Plumbing Stoppage

                     $950.00 Worth of Services

2^nd Year   Out of Pocket Expense $550.00 for Home Protection

                                                 150.00 for Service Calls

                                                $ 650.00 Total Expenses

I received    $3,000.00 Central Air

                      250.00    New Toilet

                     $200.00  Oven Repair

                   $3,450.00 Total Services

Every year I saved money, the next year my pool heater went out and I again saved $ Thousands.

The negative is that you do not get to choose your home repair technicians, but if you do not like the 1^st opinion they will be glad to provide you with a second opinion.

2nd Negative is that the replace,repair or cash value is at the discretion of the Home Protection Company I found that they will negotiate some.

If you are not happy with any of the Home protection decisions on repair , You can call me depending upon what company you choose, They have a representative that works with my real estate clients, I can usually contact the rep. and work things out for you. I am happy to do this as a service to my clients.

Protecting your real estate investment is your number one priority and a Home Protection Policy is an excellent way of handling the upkeep of your investment. These policies are also available for income properties at a higher rate. 

I personally like Old Republic and American Home Shield currently. I feel that they have the best coverage, I do switch depending upon the coverage of these companies each year.  Since I am in the business, I can assess what company is offering the best protection at the time. 

 Other Helpful Real Estate Articles:

http://activerain.com/blogsview/462789/Renting-Versus-Buying-In

http://activerain.com/blogsview/389098/Tax-Savings-on-Moving

http://activerain.com/blogsview/487163/Interst-Rates-up-Dont (Save money on interest When to buy)

http://activerain.com/blogsview/452990/Los-Angeles-County-Grea

Senior Care:

http://activerain.com/blogsview/471828/Senior-Long-Term-Care

http://activerain.com/blogsview/472230/Keep-Safe-Coalition-Protecting

 http://activerain.com/blogsview/467528/Reverse-Mortgage-is-it

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