As a Realtor who represents the Home Buyer, I have found through the years, the Home Warranty to be a very important factor in the home purchase process. The last thing a new home buyer wants to worry about after closing is the possibility of something breaking down. There are many things that could go wrong, for peace of mind; it would be a good idea to get a home protection plan. I believe it is especially important for First-time home buyers, with little experience maintaining a home.
Generally the Seller pays for the Home Protection plan and Home Warranty coverage. This is not only a benefit for the Home Buyer, but it also protects the Seller, because the home buyer won't be calling and bothering him when things go wrong.
For an annual fee of $250 to $600, the warranty covers repair or replacement of basic home systems such as plumbing and heating, major appliances, air conditioning, dishwashers, doorbells, ductwork, garbage disposal, ceiling fans and telephone wiring. The warranty company contracts with local repair companies to provide service. If something breaks, the homeowner calls the warranty company, which arranges with the local company to dispatch a repair technician.
If you do decide to try a home warranty, check with several companies and carefully read each contract to determine what is and isn't covered. You might also want to check with friends and neighbors to see who has warranties and what their experiences have been with various providers. Your best source for a Home Warranty company would be your Realtor. Realtors deal with these companies daily and know which ones are most popular with their home buyers.
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