Why Do I Need A Home Warranty? What Kind Of Home Warranty Do I Buy?

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Real Estate Agent with Keller Williams Realty EV (AZ) & Keller Williams SLC (UT) 629265000 & 7238507

 

Why Do I Need A Home Warranty?   What Kind Of Home Warranty Do I Buy?

 

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.

 

Old Republic Home Warranty 

 

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 Do I Need A Home Warranty?   What Kind Of Home Warranty Do I Buy?


 

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.

 

Why Do I Need A Home Warranty?   What Kind Of Home Warranty Do I Buy?

 

 Old Republic Home Warranty

 

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!   :)  

 

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Why Do I Need A Home Warranty?   What Kind Of Home Warranty Do I Buy?

 

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Shanna Day Dream Home Team

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Rainer
353,488
Ki Gray
SkiHomes.com LLC - Aspen, CO
SkiHomes.com - the ultimate snowsport home search!

It's very important for persons who own a home to protect their investment in the best ways possible and this can include a home warranty.

Nov 29, 2012 04:10 PM #1
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Hi Shanna, a few years ago my agent and I looked into one of these warranty programs and after reading the fine print, we could not see any likely situation where they would actually cover anything.

What kind of results have your cleints had with collecting on unexpected repairs after the purchase?

Nov 29, 2012 08:30 PM #2
Rainmaker
920,467
Bob Ratliff
Robert Ratliff Realty - San Antonio, TX
"Sold with Bob"

Shanna, oh yes home warranties for home buyer, owner/sellers give a sigh of relief to know you have a little security just in case one of your major items stops working. I make sure if the property has pools/spa and other items to add on to the policy to cover more than the basics before submitting an offer to a Seller. Great tips in blog when shopping for a home warranty. Good Stuff have a terrific Friday best wishes $$$

Nov 29, 2012 08:34 PM #3
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Shanna, I am a real believer in home warranties. I had one buyer last year buy a $120,000 home and he has had repairs covered by his warranty totaling almost $6000. Now that is a good investment and peace of mind.

Nov 30, 2012 05:59 AM #4
Rainmaker
751,582
Shanna Day Team Leader AZ & UT - Call 480-415-7616
Keller Williams Realty EV (AZ) & Keller Williams SLC (UT) - Mesa, AZ
Top .0033% of 40,000+ Realtors in our MLS

I too am a believer in Home Warranties.  I'm also a believer in making friends with the representative so that if you need extra explanation or extra strings to pull you have it.   Yvette Meyer at Old Republic Home Warranty is just that rep for me!   She is more than willing to answer questions and explain why Old Republic is the way to go.  

Bob, you asked about the results I have seen from my clients.   Every time one of my clients uses their home warranties, I get a nice little thank you from Yvette and a cost breakdown of what work was done.   Everytime I get one of these, I think to myself, "Wow, I'm glad my clients had that coverage so I didn't get that call!"  

In AZ, the two most common coverages that I see are A/C and Pool equipment/plumbing.   That's probably not going to be the case in your state(s), but you will probably see different items.  For my clients in UT, it's usually boilers and radiant heat/plumbing. 

I rank Home Warranties right up there with Home Inspections!   I wouldn't want to be without either one! 

Nov 30, 2012 10:29 AM #5
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks Shanna, I am going to give these folks a try next time.

Nov 30, 2012 02:09 PM #6
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Rainmaker
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Shanna Day Team Leader AZ & UT - Call 480-415-7616

Top .0033% of 40,000+ Realtors in our MLS
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