What Is A Home Warranty?
Home Warranties, also called Residential Service Contracts, are warranties to cover the repair or replacement of specified major appliances, designated systems, and other repairs unique to the home warranty policy purchased by the homeowner.
Are Home Warranty Companies Licensed in Texas?
Home warranty companies operating in the State of Texas are required to be licensed by the Texas Real Estate Commission (TREC).
How Do I Find A List Of Licensed Home Warranty Companies?
The TREC website lists home warranty companies licensed in the State of Texas.
What Is Covered By A Home Warranty?
Your purchased policy defines what is covered in your warranty. Different levels of coverage are available. In general, purchased coverage is available for major home systems and some major home appliances.
Note: Each company specifies what is covered and how it is covered. Read the fine print.
Who Pays for a Home Warranty When you Buy a Home?
Texas real estate contracts address the opportunity to purchase a home warranty. The Seller and Buyer decide if a warranty will be purchased, which party will pay for the warranty, and how much the party will pay for the warranty. Consult with your Realtor about the cost of home warranty polices and do your own research on coverage and cost.
Who selects the home warranty company and the warranty plan, if the Seller pays for the warranty?
The Buyer chooses the home warranty company. If the policy is more expensive than the amount specified in the contract, the Buyer may pay the cost over the amount agreed to in the contract.
How Do I Choose a Home Warranty Company?
I recommend beginning your search by printing the list of TREC Licensed Home Warranty companies.
Talk with your Realtor about companies that have performed well for homeowners. As Realtors, we receive feedback from clients.
Speak with friends who have a home warranty policies.
Read about the companies online.
Compile a list of your preferred companies based on your information gathering.
Further research the companies on your short list. Beware of online reviews. Some may be paid reviews. Some sites allow vendors to remove negative reviews. Check with the Better Business Bureau (BBB) and the Rip off Report. Refine your list based on your research.
Read the warranty information for each company on your list. Yes, read every word. The policies are short and to the point. Understand what is covered and what is not covered. Note the levels of coverage and how they differ from each other.
Some companies have district representatives. Give the company reps a call and ask questions.
Many home warranty disputes arise due to lack of information or understanding about policy coverage. Make an informed decision!
How Do Home Warranties Work?
It is important to understand the home warranty process.
The homeowner calls the repair in to the home warranty company.
The company sends a work order to the appropriate repair company. A day or two may be lost in this process. The repair company calls you directly to schedule an appointment.
The homeowner pays the designated service fee to the service company.
The technician assesses your issue. In some cases, the repair can be done the day the technician comes to your home. In other cases, the technician must get an okay from the home warranty company to proceed with the repair(s). If it is necessary to order parts, there may be a delay in the repair.
Check with your selected home warranty company to verify their process.
Are Home Warranties Worth the Money?
Sellers and Home Inspectors have no way of knowing that a major kitchen appliance, hot water heater, air conditioning compressor, or pool pump is going to stop working in the months after you purchase your new home. As the new homeowner, you are responsible for the repairs. A home warranty may cover the repair and provide financial relief.
If a home warranty will put your mind at ease, do your homework and find the home warranty that meets your needs.