Now that you finally have your own home, you should not immediately relax as there are still some other things you need to take care of, like house maintenance. There’s always a possibility that one or more of your appliances or home systems break or malfunction. For this reason, it’s advisable to have a home protection plan to keep your mind at ease, especially if you’re a first-time home buyer who doesn’t know much about maintaining a home.
Home appliance protection plans also referred to as home warranties, are reasonably priced. They range from $250 up to $400, depending on the type of coverage. These are paid early, about a year advance, wherein they get expired or renewed. Some companies run special sales and give added coverage or discounts.
A home warranty may be financed either by the buyer or the seller. Most of the time, the buyer purchases the home warranty since it may also be beneficial for him/her; if the seller pays for the coverage, the buyer will not bother them by calling after the deal has been closed if something needs to be fixed. There are some instances in which the real estate agent pays for the home protection plan to give it as a present to the buyer.
Even though there’s a home protection plan that provides coverage, most of these have the same process of how they work. For example, if one of your appliances or home systems starts to malfunction, you just contact the company, and then they call their service provider, which has an arrangement with them regarding repairs. The vendor, then, calls you to arrange an appointment to have the broken appliance fixed. In the scenario that it can’t be fixed, the company will pay to have it replaced and installed, depending on your coverage plan. Afterward, you pay a small amount of trade service fee of not more than $100.
A home protection plan has a lot of different types so it’s best to ask the coverage of each type and find out if it can be upgraded. Focus on whether the home warranty company pays for the repairs to make a particular kind of system or appliance compliant with regulations.
In general, the coverage of a home protection plan includes the following:
- Oven and range
- Telephone wiring
- Ceiling fans
- Electrical systems
- Garbage disposal
- Internal plumbing stoppages
- Water heater
- Heating system or furnace
- Air conditioning
There are items in the house that are not included in a home warranty. Some of these include, but are not limited to, the following:
- Permit fees
- Haul always
- Certain home protection plans do not pay for dryers, washers, garage door openers, or refrigerators
- Pools or Spa (unless they are requested to be included in the coverage)
- Outdoor items (for example, sprinklers)
- Some plans do not cover faucet repairs
There are cases where a home warranty company might refuse to pay for the coverage plan. These may be caused by any one of the following:
- Strange wear and tear
- Incorrect installation
- Inadequate maintenance
- Violation of Code
Even after you’ve purchased your new house from one of the Southlake homes for sale, you may still inquire about these home protection plans to your real estate agent.