What is a Home Warranty Plan?

Posted by on Jan 2, 2012 in Real Estate Investing | Comments Off

The main reason why you need a home warranty is because it serves as a protection to home buyers who might face unforeseen financial problems related to home ownership.

Home warranties are purchased from Home Warranty companies whose entire business is providing home warranties for home buyers and occasional sellers. Generally, they last for one year and can offer financial assistance from home defects such as broken furnaces, electrical issues, plumbing problems, or even failure of air conditioning units or refrigerators.

A standard one year home warranty typically costs between $270-$350 dollars. A standard warranty will typically cover heating systems, pipe links, water heaters, toilets, dishwashers, ovens, built in microwaves, and ovens. There are also “upgraded” home warranty plans, or al-a-cart items that can be added for things like refrigerators, swimming pools, and septic systems.

What home owners do is that they simply call the home warranty company if a covered item breaks down during the warranty period. They pay a service call that is usually around $60, and the home warranty company will arrange replacing or repairing the problem.

Home warranties offer a sense of protection to buyers who can’t be guaranteed that the property at Chicago Illinois Homes for Sale they are buying won’t turn into a money pit because in some instances buyers have no way to know if part of a house really works until after closing. When its 110 degrees outside, it’s impossible for a home inspector to tell if the furnace really is giving out heat.

If you have a healthy savings account or a rainy day fund, then you’re probably better off without purchasing a home warranty. Home Warranties make their money by playing the odds that the warranty won’t actually have to be used. Think about how home warranty companies make their money, it’s not by servicing homes that need repairs, but it’s by having a higher percentage of warranties issued that require no service.

For people living paycheck to paycheck that could be devastated by a costly furnace repair, home warranties are highly recommended. Determining if you should purchase a home warranty or not really depends on the type of person you are.

The question here is – The Cost of Home Warranties Worth It? If nothing happens, they usually forget they ever purchased it. If a problem happens during that first year of home ownership, people are almost always glad they have the home warranty.

Home warranties are highly recommended for people living paycheck to paycheck that could be devastated by a costly furnace repair. Determining if you should purchase a home warranty or not really depends on the type of person you are.

All things can go wrong and with your Antioch CA Real Estate. In this case a home warranty is a must. Knowing the risks and potential problems that can ruin Atherton CA Homes is a wise decision and is truly worth your time.