If you plan to sell your home, your agent might advise you to purchase a homeowner’s warranty policy as this would improve your chances for a good sale. What, after all, is it all about? And why does this improve the chance of finding a better deal when you sell your home? The home warranty is a kind of insurance that provides coverage for repairs (or replacements if repairs are not possible) of any appliances or major systems that are installed in the home. This typically includes such things as ceiling fans, disposals, plumbing stoppages, water heater, and similar items. Coverage may additionally include items by specific listing, such as the central A/C and refrigerator. The basic idea is comparable to the homeowner insurance, but while homeowner policies provide coverage against risk of damage to the structure and the property within caused by extraordinary events such as theft, the home warranty covers the ordinary risk of having failures of systems and appliances that are a part of the home.
If you pay for a home warranty you are protected from having to pay the cost of repairs if any of the covered systems or items in the home fail. There will be usually only a nominal service fee that is charged when the technician makes a visit for repairs. These payments, which are set in advance, are generally negligible when you compare them with the costs one would incur if the system or appliance had to be replaced.
Depending on the premium you are willing to pay, you would need to decide the policy term for which you will commit. There are policies that last a year, usually renewable and there are longer home warranty contracts. Normally, a longer contract will give a lower cost per year.
As with all other insurance policies, the home warranty comes in various flavors and you will find a variety of quotes from different providers. In order to ensure that you get a good deal, you really have to look into several sources. Using the Yellow Pages or the Internet, or asking your agent, makes it easy to get yourself well-informed so you can make a good choice.
Whether ready to sell, or planning to live in the home for a long time, a homeowner can benefit by having a home warranty policy.
Information presented by the ultimate Colorado real estate experts at Automated Homefinder