First of all, I am not a representative with a home warranty company so I am not an expert on the subject, but I do see their value and think consumers need to know more about them.
I had a Facebook friend contact me earlier this week because she knows I am in real estate and wanted to know if I could recommend a home warranty. Um, YES!
Once we got on the phone, she further explained that she and her husband recently built a house (kudos to them) and they got a "department store" warranty on the appliances, but had no warranty on the other systems throughout the property and figured it was smarter to get a home warranty.
Well she was definitely right. Basically the way a comprehensive warranty works is that you pay a base price which covers most appliances and systems in the property. When you need to call in a claim, you pay a trade fee and the contractor repairs or replaces the item. The more you pay for the base price, the lower the trade fee so it works very similar to insurance and deductibles in that regard. They are usually for year and then you just renew them annually from there.
Home warranties can be a great value and I suggest them for all buyers, especially first time home buyers - click here if you are interested in more information from a home warranty representative.