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Lancaster PA Real Estate - What are Home Warranties and how they work.

Castellum Realty LLC - Lancaster PA Real Estate
   
During the real estate boom years it was fairly common for a home warranty program to be included with a home purchase.   Many brokers would use them as listing tools and also to provide an incentive for home buyers to feel more comfortable with their purchase.  Now, with home sales down and agents needing to cut costs, the inclusion of a home warranty as part of the sale has become less prevalent.
When counseling new home buyers, I encourage them to consider a home warranty plan as part of their purchasing strategy. 
What is a Home Warranty?
As with any type of insurance, a home warranty provides the buyer with some peace of mind.
Not to be confused with a builder's warranty, a home warranty is actually a service contract and is typically purchased for existing homes.  For an annual fee, which ranges from $400 - $600, a warranty will cover major mechanical systems and appliances such as furnaces, air conditioning, plumbing and electrical items.
Types of Coverage
Since companies differ, you will want to find out specifically what is covered.  There is usually a basic plan with upgrades available. 
A ... more

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