A home warranty plan is much like a warranty plan on your television or stereo; if something goes wrong within the first year you’ve purchased your home, you’re basically covered. That’s not to say you should go ahead and have a “swinging from the chandeliers” kind of housewarming party, but chances are, if you run the dishwasher one night after dinner and walk into the kitchen 45 minutes later to find sudsy water where your kitchen floor used to be, the warranty is there to help you out.
How do I get a home warranty?
Most of the time, a seller will purchase the home warranty as part of the closing package. It’s also not completely unheard of for a real estate agent to “gift” the client with a home warranty. If neither party is offering one up, you as a buyer should look into purchasing your own.
How much do they cost?
Typically a home warranty costs between $350 and $400 a year. It is a renewable contract, but if the seller or realty agent purchased the warranty for one year, it is up to the buyer to renew and finance the warranty if he/she decides to do so once the contract is set to expire.
What does a home warranty cover?
A home warranty covers basically everything under the roof that was included in the sale of the home. Basic electrical, plumbing, and heating and cooling issues are covered under a home warranty, and most of the time, major appliances such as refrigerators, stoves, and dishwashers are also covered. Not all warranties cover all appliances however, and so it’s a good idea to read through the policy beforehand. Other things not typically covered are pools and/or spas, and even certain faucet repairs. Again, read through the warranty coverage and if you find something that isn’t covered, politely inquire if an upgrade is available and be prepared to cover the upgrade cost yourself.
My dishwasher is leaking all over my kitchen floor. Now what?
Much like when you have a car accident, you call the home warranty company first. The home warranty company will then contact their local service provider who will then contact you to arrange an appointment. The technician arrives, diagnoses the problem, and then fixes it. If the problem cannot be fixed and a new appliance is required, depending on the warranty coverage, the warranty company will then pay to have the appliance replaced. Once everything is sorted out, you as the homeowner will pay a small trade fee (less than $100) to the service provider (much like your auto insurance deductible).
The service technician says my dishwasher problem isn’t covered. Now what?
If you put your child’s sippy cup in the dishwasher knowing it wasn’t dishwasher safe and it melted all over everything, well, yes, that’s your fault and therefore you are required to cover the cost of the repairs and/or replacement. Other things that can trigger denial of payment are code violations, improper installation, and improper maintenance (like say, the failure to change out a furnace filter).
If you have been denied payment by the warranty company and it’s for something such as a code violation or improper installation, try calling your real estate agent. Realty agents oftentimes have working relationships with home warranty providers and therefore have some pull to try and work out an ideal solution for all. After all, the agent wants your referrals, and the home warranty provider wants the agent’s referrals so a win-win solution for everyone is ideal for, well, everyone.
