Cover Your ASSet!

Moving weekend. You finally have that giant garden tub for the kids to go "swimming" in! While you're unpacking your master suite, you decide to run them a bath to preoccupy them while you unload the boxes. The tub is full, the kids are "swimming" and all is great, until the tub is half full... ? How could it be? You drain the water, dress the kids and inspect the tub. You find a small hole on the side of drain plate. And then you think... "half of the garden tub!" You rush downstairs and there you find it, the finished basement carpet AND DRYWALL are SOAKED!!!

The above story is a true story! This happened a couple years back for one of Jen's clients and boy were they happy they had a home warranty to cover these damages. Yes, they could have filed a homeowner's claim. However, filing a home owner's insurance claim would cause next year's (and the following 2 or 3 years) premium to increase. For the cost of the home warranty deductible this family the had peace of mind that licensed professionals came into their home to make repairs and replacement to the extent of water remediation, plumbing, carpeting and drywall.

We are big supporters of home warranties at Webb Realty Pros. If you've bought a home recently, you may have purchased or received a home warranty.

The cost of a home warranty is about $600 + a service fee of about $100-175 for each repair. Typically a home warranty covers the mechanical items of your home: appliances, plumbing, water heater, furnace, AC, sump pump, whirlpool tub, electrical components, and ceiling and exhaust fans.

“Enhanced” plans, purchased for another $100 to $300, provide added coverage for such things as well pump, septic systems, and pool heaters & pumps.

Before buying a home warranty, make sure there isn't a warranty already in place with the seller or builder. A newly built home will have a 1-year builder warranty to cover interior damages and a 10-year structural warranty. And new appliances also have a 1-year warranty.

*Pro Tip* When buying new furniture, mechanicals and appliances, use a credit card that extends the product's warranty. Or purchase the additional warranty from the store. This can extend the item(s) warranty 1-5 years. -They don't make things like they used to!

Is a home warranty right for you?

Think about your needs. Thinks about the age of each covered item and its average life span. Use this chart from National Association of Certified Home Inspectors for some guidance.

The average cost to repair an aging mechanical might be significantly more than the cost of a warranty to repair it. Components that have pre-existing problems, however, typically are excluded from protection.

Before buying a home warranty, read the contract and understand exactly what it does and does not cover. Some home warranty contracts will not provide coverage for refrigeration freon, if you didn’t maintain the appliance, if the appliance was installed incorrectly, if the appliance had too much wear and tear.

Some home warranty companies offer seller coverage. Before the home inspection, order the home warranty with the seller coverage (with the seller's permission of course) to cover any items that break during the time between accepting the offer and closing.

Things to know:

1. Not all home warranty companies offer the same coverage. Talk about your needs with your agent to see which warranty company my work best for you.

2. A home warranty will cover the cost to repair an item covered, not replace. If you haven’t read it carefully, be prepared for surprises. Don’t assume:

3. You can't call just any service provider, you must use the providers the home warranty contracts.

4. Consider the condition of the mechanical items and appliances before committing to a warranty. If the systems and appliances look as if they haven't been maintained over the years, the warranty company may not cover the repair- based on "pre-existing" conditions.

5. Most contracts allow a 30-day refund policy. If you feel the warranty service isn't for your home, you can cancel within 30-days for a full refund, according to the Service Contract Industry Council.

For a list of home warranty companies, contact us at this link:

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