During a real estate transaction, there are plenty of very important things transpiring that require attention, which may be why the home warranty piece of owning a home is often overlooked and not addressed in detail. Home warranty plans, although fairly straightforward, can cause confusion in the eyes homebuyers if they are buying for the first time or have not bought for an extended period of time.
One important thing to know is that plans can vary drastically based on the provider and the coverage included in the plan. Policies can range for a few hundred dollars to upwards of $1,000. Regardless of the plan, there are items that tend to remain consistent across the board.
Typically if there is a problem with an appliance, the homeowner contacts the home warranty provider. The warranty company then contacts one of its providers to get in touch with the homeowner. Once the provider comes out to the home to look at the appliance, a decision is made as to whether or not the appliance can be fixed or needs to be replaced. Often there is a small deductible (if outlined in the policy).
An important thing to be aware of is that not all appliances are covered in standard policies. Items may include swimming pools, spas, and outdoor plumbing. In addition, the home warranty company may deny a claim if the appliance wasn’t properly installed or it wasn’t taken care of adequately.
A real estate agent can often assist with questions pertaining to a home warranty policy and can provide feedback on what coverage may be needed for the home. In addition, homeowners may be interested in conducting their own research to identify the type of coverage they are interested in.