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Do I Need a Home Warranty?

Wednesday, February 24, 2021
by Scott Darling


Choosing to purchase a home warranty is something any homeowner, house hunter, and even seller should think about. While different companies offer home warranties, the purpose of a home warranty is generally the same. Let this guide help you decide if you need this service: 
 

  • A home warranty covers what homeowner’s insurance does not. When one of your home’s systems or major appliances breaks down or is damaged from normal wear and tear, a home warranty will help you with the costs. 
     

  • Homeowners pay a monthly fee, on average $300-$600 per year, according to Consumer Affairs. Most service calls through the company will require the homeowner to pay a set service fee to the technician when making a claim. 
     

  • A home warranty can be purchased at any time, which is great for someone who is selling their home.  Sellers can spend a good amount of money prepping the house for sale, and a warranty will help considerably if something breaks down during the selling process. Warranties can be transferred to the buyer, as well! 
     

  • A newer home may not necessarily need a home warranty, so stash an amount equal to a monthly warranty payment into your savings account!  You can build emergency savings and have the funds for unexpected repairs. 
     

  • Research home warranties for prices and coverage available. Your Realtor® will be able to direct you to companies they are familiar with, and you can trust you are working with a reputable home warranty company. 
     

  • Current homeowners who do not have a home warranty can find a company that is registered with the Service Contract Industry Council. Scroll to the “Home Service Contract Companies” for a complete contact list. 

 

There are so many different decisions to make when it comes to homeownership, it can feel overwhelming. Making good decisions depends on how much time you put into researching and asking questions.  Inform yourself by doing your research and having a discussion with your Realtor® and/or warranty agent to help make the best home warranty decision for your home and wallet. 

 

Courtesy of Chester County PA Realtor Scott Darling.

Photo credit: homewarrantyreviews

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The Value of a Home Warranty

Thursday, June 19, 2014
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2014 NATIONAL ASSOCIATION OF REALTORS®

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Home Warranty Can Help Sell Your Chester County PA Home

Wednesday, July 20, 2011
by Scott Darling

In recent years of ever-increasing fees by service repair companies and continued belt-tightening by home buyers, the provision of home warranty protection plans by sellers has become a rather common--and even expected--incentive. The knowledge that they won’t be hit by unexpected repair bills in the first year after purchasing their Chester County PA home is reassuring to buyers, especially first-timers who have no experience in home maintenance.

A home warranty plan is essentially a service contract that covers a major housing system, for example, plumbing or electrical wiring -- for a set period of time from the date a house is sold. The warranty guarantees repairs to the covered system and is renewable.

How Much Does a Home Warranty Cost?

They are fairly inexpensive, typically ranging from $250 to $400, depending on coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

How Do They Work?

Although specific plans provide for specific types of coverage, most operate the same way.

  • If a home system or appliance breaks or stops working, the home owner calls the home warranty company.
  • The home warranty company calls a provider with which it has a business arrangement.
  • The specific provider calls the home owner to make an appointment.
  • The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.
  • The home owner pays a small trade service fee (less than $100).　

Types of Coverage

Because all plans differ, you will want to ask specifically what is covered. Ask your real estate agent to recommend a proven plan and inquire if upgrades are available for your Chester County PA home. Pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations and be aware that they won’t pay for pre-existing conditions. Usually covered are heating and cooling systems, water heaters, appliances, electrical systems, inside plumbing stoppages, ductwork, ceiling fans, and garbage disposals.

Advantages Of Offering a Warranty Plan

Home warranty companies profess that in addition to providing buyer peace of mind, the protection plan you provide for your Chester County PA home prevents many post-sale disputes, speeds up the sale, and helps to bring in a higher price. They also suggest that you take out such a policy during the listing period to provide peace of mind to you, the seller, too!

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