Who Pays for A Home Warranty?
The seller or the buyer pays for it. This usually depends on your local norm. Usually, the seller pays for the coverage because it’s a seller benefit.
Cost of A Home Warranty
These plans are inexpensive. They typically range between $350 to $600 a year. Home warranty companies sometimes run specials; they either discount their policy prices or offer additional coverage for the same price. Policies are usually prepaid for a year in advance. They can be renewed by the homeowner when they expire.
How Do Home Warranties Work?
Some plans provide for specific types of coverage, but most work in a similar fashion.
– The homeowner calls the warranty company if there is a concern.
– The warranty company calls a provider with which it has a business agreement.
– The provider calls the homeowner to make an appointment.
– The provider fixes the problem. The home warranty company will pay to replace and install the appliance if it can’t be repaired, depending on the contract coverage.
– The homeowner pays a small trade service fee for the visit—anywhere from $75 to $100.
Types of Coverage
You’ll want to specifically ask what’s covered under your plan because all plans differ.
General Coverage
Issues that are commonly covered include home appliances, electricals, electronics, garbage disposals, among others. The coverage for a home warranty plan can vary from state to state and from policy to policy. Request to see a sample copy of a policy before you commit. Be sure to check your specific policy to learn what is and isn’t covered.
Denial of Payment
Denial of payment may happen for various reasons, including improper maintenance, a pre-existing condition disclosed in a home inspection, abnormal wear, and tear.
Disagreements with The Outcome
A service provider can deny a claim. You can call your real estate agent and complain if that happens or if you’re unsatisfied with the services.
Five Questions to Ask Yourself About Home Warranty
– Do I already have protection?
– How much will this warranty cost?
– Am I clear about what the warranty covers?
– Will this plan repair or replace a broken item?
– Are there limits on how much a plan will pay out?
Be sure to read the terms and conditions carefully.
