A home warranty is a service contract, normally for one year, which helps protect home owners against the cost of unexpected covered repairs or replacement on their major systems and appliances that break down due to normal wear and tear. Coverage is for systems and appliances in good working order at the start of the contract. These type of warranties are something buyers looking for homes for sale in Stark County and Tuscarawas Countywill want to consider.
Typically during the contract writing stage it is decided if a home buyer would like a home warranty, and whom will be paying for it- the buyer or seller. Sometimes, sellers will offer a one year home warranty as a courtesy for home buyers in Stark and Tuscarawas county. Other times, sellers will decide against paying for such a service and then the decision is up to the buyers rather to purchase their own home warranty or to forgo the option. The cost can also be split between the home buyer and seller as well. All of these options need to be discussed and written into the purchase agreement by your Realtor.
The price varies depending on the home warranty company but generally expect to pay somewhere between $400-$500.
Its a good idea to look through a policy and be sure that you understand the ins and outs of how it works. If you have an appliance malfunction, you may need to call the home warranty company before you contact a repair man. This is important to find out in advance. You’ll want to keep the contact info somewhere easily accessible.
Check your home warranty policy to see which of the following items are covered. Also find out if the policy covers the full replacement cost of an item.
- Electrical systems
- Water heater
- Heating ducts
- Water pump
- Garbage disposal
Make sure the policy spells out:
- The term of the warranty (usually one year, but there may be an option to extend).
- The names of the persons being protected by the warranty.
- If the warranty is being transferred (from the seller to you), clear specifics of how that transfer will take effect.
- A precise explanation of how to file a claim.
- A clear description of what is covered — what is included, what is excluded, any limitations on personal property coverage; any deductibles or other fees besides the cost of the policy itself.
- A clear explanation of who will make repairs (Does the warranty company have its own repair people? Does it have a designated service company? Or will you be reimbursed for the cost of having repairs done?).
If a warranty does not meet your needs, keep shopping around. Ask your Realtor for suggestions.
For many home buyers a warranty is the smart choice. The last thing anyone needs is to start life in a new home with major malfunctions causing financial distress just as your adjusting to a new budget.
Feel free to contact me with any questions you have.