Protect Your Investment with a Home Warranty

A home warranty typically assumes responsibility for the repair or replacement of covered mechanical components in your home which fail due to normal wear and tear. Warranties ensure the working parts of a home will function as they were designed to function.

Repairs that are covered depend upon each individual warranty and any extra coverage you elect to add — see your specific home warranty for more details. Typical items covered can include a home's heating, plumbing and electrical systems, central air conditioning, duct work, hot water heater, sump pump, garbage disposal, dishwasher, trash compactor, built-in microwaves, range, oven and cook-top stove.

Warranty contracts are usually offered for one year, and most plans are renewable annually. Warranties can range from $385 to $450, and extra coverage for items like pools and spas can be purchased separately.

Homeowners warranties are especially useful when buying an older home or one that has been vacant for some time. However, they are also beneficial to the sell side because they give the seller, and his or her agent, a reduced liability for any unforeseen problems that may occur both while a home is on the market and after it's sold. In addition, the seller can strengthen the home's desirability by including a warranty with the sale as an incentive.

If you're building a new home, you can also purchase a warranty that typically covers defects in materials or workmanship as well as plumbing, electrical, heating, cooling, ventilating and mechanical systems.

Home warranties can often be confused with homeowners insurance, but it's important to know how they differ. Homeowners insurance protects you against fire, and in some areas, floods as well. Most policies also protect homeowners against theft and liability should someone be injured on the property.

If you're buying a home this year, protect your investment with a home warranty, and be sure to have me at your side every step of the way.

Source: Real Living Customer Newsletter