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What is a Home Warranty Protection Plan?

By
Real Estate Broker/Owner with Potranco Realty 492107

Protecting your Budget

Now that sounds like good title right?

Home protection plans help homeowners cost when unexpected breakdowns occur and repairs have to be made. Typically a service agreement with a Home Warranty company covers replacement and repairs of major home system components and appliances etc.

 

As a real estate professional we often advise both sellers and buyers to consider a home warranty plan when negotiating their contracts to help keep the home protected from the expenses of unexpected repairs during the moving-out and moving-in. 

 

Home Insurance

 Home Insurance typically protects your home from things like fire, theft, or natural disasters. Where as a home warranty helps protect your budget.

There are many home warranty companies to choose from who can offer you basic coverage plans, silver coverage plans or gold coverage plans. Basic prices start around $400 to $450 and have optional coverage with additional cost like pools, wells, septics, swimming pools/spas, pumps and more. Generally a home warranty plan is only good for twelve to thirteen months and will need to be renewed.

 

Less stress and less worries, consider a Home Warranty Plan by protecting your budget.

 

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Bob Ratliff,  I always put in the contract for the seller to supply a home warranty.  It is insurance.

 

Sep 28, 2018 02:11 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Bob Ratliff 

I do discuss Home Warranties with both sellers and buyers. In many instances, it is good to have especially in older homes.

Sep 28, 2018 02:21 PM
Pat Starnes-Front Gate Realty
Front Gate Real Estate - Brandon, MS
601-991-2900 Office; 601-278-4513 Cell

Sellers will sometimes provide a home warranty to give buyers peace of mind, especially when selling older homes. Of course, systems failure can happen regardless of the age of the home.

Sep 28, 2018 02:49 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Bob,

I always write in an offer for a seller to purchase a home warranty plan for my buyer and tell my sellers to offer one! A great insurance policy and I like your "Protecting your budget" quote....Makes sense.

Sep 28, 2018 03:54 PM
Roy Kelley
Retired - Gaithersburg, MD

This is very good information to share with prospective home buyers.

Sep 28, 2018 04:47 PM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Bob Ratliff, like Dorie Dillard CRS GRI ABR,  I always ask for a Home Warranty for my buyers and strongly encourage sellers to offer one.

Sep 28, 2018 05:40 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I highly recommend these. One of my buyer clients had one provided by the seller last November and to date has received almost $2700 in benefits. I bet she will renew.

Sep 28, 2018 06:43 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bob this is great advice, when we bought our home the second night the Hot Water Heater clonked out and I was so glad we negotiated the Home Warranty into the deal...Endre

Sep 28, 2018 11:41 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Oh yes Bob, those unexpected repairs do happen, and this is a terrific suggestion for sellers to include in the deal...

Sep 29, 2018 03:07 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

That is a good comparison of the two, as buyers are often confused by this.  Home warranties are good, but like with every other type of insurance, they seem to try to get out of paying claims.

Sep 29, 2018 07:42 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great post Bob.  Especially for buyers who may be nervous about purchasing an older home.

Sep 29, 2018 09:44 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Bob - it is fairly common in our area that a home protection plan is included for a one year with a resale home purchase. 

Sep 29, 2018 11:34 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh, I waffle on this topic, Bob but, I'm currently of the mindset that all first-timers should have a home warranty...at least during the first year of homeownership.

Great tips! Have a great week ahead!

Sep 30, 2018 07:20 PM
Sally K. & David L. Hanson

We have one on our house Debe Maxwell, CRS has saved us a ton of $$$ !

Oct 08, 2018 02:44 AM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

We suggest home warranties ALL the time...best insurance there is !

Oct 08, 2018 02:43 AM