Article by Cheryl Rost
First American Home Warranties
When buying or selling a home in Central PA, the last thing you want to worry about is a costly repair or replacement of a system or appliance. For peace of mind, it’s a good idea to protect the home with a home warranty. A home warranty is a residential service contract that provides repair or replacement coverage for the major operating systems and appliances in a home that fail due to normal wear and tear.
The typical home warranty can be purchased by either the buyer or the seller. It can protect the seller during the listing period and protects the buyer for the first year of ownership. It’s a benefit to the seller to provide the warranty as part of the sale so the buyer won’t be calling the seller if something breaks down after close. It is also an excellent marketing tool to help the seller land a buyer. They are fairly inexpensive, and typically range from $350 to $550, depending on coverage. Policies are prepaid for one year in advance and can be renewed annually. The first year’s premium is typically paid at closing.
It is very important to read the warranty contract so you understand the coverage. Home warranties cover most of the important systems and appliances in a home, but they do not cover everything. Home warranties cover items that are in good working order at the start of coverage. They do not cover known pre-existing conditions.
Some items that are typically covered are:
- heating and air conditioning systems,
- ductwork,
- water heater,
- plumbing and electrical systems,
- major appliances, and
- garage door openers.
When a system or appliance failure occurs, you simply call the home warranty company who will dispatch a technician to diagnosis the failure. If the technician determines that it is a covered failure, he will attempt to correct the failure. If the covered item cannot be repaired, most warranty companies will replace it.
The homeowner pays a small trade service fee, typically between $60 and $100, based on the terms of the contract. So, with repair and replacement costs that can be as high as $3,000.00 or more, a home warranty is a very good investment.
For more info, contact Cheryl Rost at:
Cell: (717) 495-6522
Email: cdrost@firstam.com
Web Services: www.homewarranty.firstam.com