Home Warranty Companies Affected by Slowdown: Adjusting Prices/Coverage

By
Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

Cost of Home Warranty Coverage RisesIt seems that the slowdown in the real estate market has Home Warranty companies that service the Salt Lake City real estate market adjusting their premiums and coverages to keep profits up.

Over the past 45 days prices have gone up by about 18% and deductibles (service fees) are up about 10%.

To be fair, some additional coverages have been added to some warranty companies' offerings, but others have actually lowered their level of coverage by removing items from standard coverage or limiting the extent to which the home warranty company will cover certain claims. The cost of "add-on" coverage (for additional appliances, etc.) has also gone up for most companies.

When I asked one particular representative why prices went up, the first response was because of the additional coverage provided (unknown conditions had been added as a standard inclusion). After a little straight talk about the other areas where coverage or prices had become worse the final answer I got was: volume is down.

At any rate, even at the new prices (About $300 for standard coverage) a home warranty is usually a good investment when buying a home. Especially now that Utah's standard purchase contract has been changed to "as-is" by default! (More on that to come.)

In most transactions, the Seller is willing to cover the cost of a Home Warranty plan as it provides them some relief in the event that some system of the home fails shortly after the sale.

If you are buying a home in the Salt Lake City, Utah area make sure you hire a professional agent on YOUR side of the transaction! Make certain the agent you hire is an Exclusive Buyer's Agent! (EBA)

If you have excellent credit and will be buying a $250,000-$750,000 home within 90 days and want an agent working exclusively for YOU, call us at (801) 969-8989 or contact us via the link on this page.

Exclusive Buyer Brokerages do not list homes and never represent Sellers.  Their agents represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...

 

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Topic:
Home Buying
Location:
Utah
Tags:
home warranty
home
prices
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eba
representation
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Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Price of everything has gone up. I am glad price of gas has come down.

Oct 18, 2008 07:24 AM #1
Rainer
51,133
Christopher Bonta
The Bean Group - Londonderry, NH
Realtor, Integrity and Honesty

Ben, in reading your post I almost fell off my chair when I got to the part about Utah being an " as-is" State. Please don't tell me that homes have to be sold "as is". I know you said that more was coming about this topic, but I'm now very interested in this. As for the Home Warranty blog, your right that the overall cost for a warranty (even if it has gone up) is well worth the investment.

Oct 22, 2008 10:21 AM #2
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Rainmaker
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Benjamin Clark

Buyer's Agent - Certified Negotiation Expert
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