SHOULD YOU BUY A HOME WARRANTY? (C) 2014 by Wayne Lewis, Sr.

 The cost of a home warranty, for single home can range rom $300 to $700, depending on the features/coverage that you, as a buyer, are looking for, or choose to select.  Please consult with your agent or home warranty specialist for details.

As a purchaser, 3 things that you may want to be aware of in most the purchases of home warranty are the following:

A.  Deductible-The deductible can vary from $50 to $100 in some cases, depending on the program you select.  The deductible is generally required as with any warranty.  Depending on the policy, it can be paid to Servicer or to the Home Warranty company (see your policy for details).  In most cases, the deductible is per incident.  For example: If a covered item (Stove) malfunctions during the coverage period, and another covered item (A/C) goes out, the deductible, ($50 for example), the total deductible will be for $100.  This is, of course, deducted from the total cost of repairing the covered item.

B.  Not Covered:  Check your policy, but you may have several items that are not covered for at least 2 reasons:  A.  The item was not working at the time the policy was put in effect (pre-existing condition), or B. the damage or disrepair to an otherwise covered item was such that the policy excludes coverage if the item was not used in the manner in which it was designed.  For example: putting lawn mower parts in the washing machine, and the tub comes off of its base-not covered. 

C.  Saves Money- The amount of money saved cannot be predicted in this forum.   However, there are 2 trains of thought that come to mind.  First, in many cases, the home warranties can be negotiated to be paid for by the seller of the home.  The coverage is often paid for out of the closing proceeds, so the seller hardly notices.  The buyer is receiving an awesome "gift" that should lend itself to a piece of mind, knowing that if a major repair occurs, the worst case-scenario is the deductible, all things considered.  Secondly, if the seller chooses not to buy it at closing, the buyer still has the option to purchase a warranty, and piece of mind. The main benefit, even if nothing happens, is having something that if needed is there to save money on otherwise costly repairs.

Compare Reviews on Home Warranty Companies:
http://www.consumeraffairs.com/homeowners/aaa_warranties.html

There are other benefits to purchasing a home warranty.  Consult with your Realtor or Home Warranty Specialist to determine what is the policy for your home and for you.  There are a number o home warranty companies on the market, so feel free to use the link above to shop for the Home Warranty program available.  Hopefully, this information will give you an indication of the value of purchasing a home warranty when buying your new home.  Note that your home does not have to be new, and for the most part, your covered items just need to be in working order at the time you purchased your home.  Good luck, and don't forget, always MAKE YOUR BEST OFFER!

Disclaimer:  Information provided here is deemed to be from reliable sources, but not guaranteed.  Not an intent to solicit the business or clients of other brokers.  No information contained herein should be considered as an endorsement of any services or company.