Published on December 18th, 2016 | by admin0
Costs of Home Warranty- Handy Information to Guide You
When you buy a home, even if it is not new, there is a very high chance that you will be offered a home warranty. In most of the cases, the home sellers purchase these warranties and therefore offer to the buyers for the peace of mind that in case any component of that home fails then it can be fixed affordably. Otherwise, you will receive numerous mail solicitations to purchase the home warranty after closing the sale.
The total protection home warranty, also known as the home service contract, is not anything new. But in the recent time, more and more real estate agents are recommending these as the housing market has been flooded with the short sales properties and foreclosures, which were mostly poorly maintained or neglected.
The next thing to know about the home warranty is how much it costs:
The home warranty insurance plan costs several hundred dollars every year, paid upfront or in installments in case the warranty company prefers a payment plan. The cost of the plan often varies on the basis of property type like as condo, single-family detached, duplex, townhome and whether the homeowner likes to purchase a basic or extended plan. The cost doesn’t vary with the age of the property, until and unless the home is brand new that enhances the cost of coverage. The square footage of the home also doesn’t affect the cost in the majority of the cases unless the area of the property is more than 50000ft. Separate structures like as guest houses are not covered by the basic policy, but these can be covered for an extra fee. But the garages must be covered by the basic policy.
Apart from the annual premium, the home warranty plans offered by the home warranty companies charge one service call fee every time the policy holder requests that the service provider come out to the home to examine any issue. In case the problem needs more than one type of contractor to visit, then the homeowner may need to pay the service free for every contractor.
But one thing you need to remember that having a home warranty never means that the homeowner would never have to spend pennies on home repairs. There are some issues, which will never be covered by this warranty, whether because the homeowner didn’t buy coverage for the item or because the warranty service provider doesn’t offer coverage for the item.