Posted 7.9.13 @ 8:35
And cents? You need to know that you’re getting something that really does help you when you buy a home, but you may not know what they cover. The internet is littered with stories of people that chose to avoid spending the money only to have a severe issue within the first couple years of owning an older home. It can cover everything from the electrical wiring of the home, HVAC and even your appliances. Here we’ll talk about what value they provide and who they work for best, so let’s get started!
What Do They Cover?
It depends on the policy, but they typically cover major appliances and home systems like:
HVAC – Your heating and cooling system will usually be covered by your policy, but make sure you read the fine print! This can include furnaces, ductwork, central air systems, air conditioners and heat pumps. If you have portable AC or heating systems they probably won’t be covered by your policy.
Plumbing – Indoor plumbing like pipes, drains, faucets, pools and more will be covered by your policy. Outdoor plumbing is iffy territory; make sure you ask if this applies to you.
Major Appliances – While microwave ovens probably won’t fall into this category, items like refrigerators, washers, dryers and other installed items may. If you’re buying a luxury home with older appliances this could pay for itself in no time.
Electrical Systems – Panels, wiring, light fixtures, door bells and more – basically anything indoors and electrical that’s wired into the home.
Always remember that these do not cover the structure of your home; if you happen to have a crack in the foundation, a leaky roof or another structural issue, a home warranty isn’t going to cover it.
What Do They Cost?
These cost anywhere from $300 to $1000 a year, depending on the home. Most policies have something that’s known as an “incident fee”; if your oven goes out for example you’ll have to pay $75 on top of your annual payment to get it fixed. Not bad in the grand scheme of things, especially when you’re buying an older home.
When Do Home Warranties Work Out?
Believe it or not, newer appliances are more apt to break than older systems; just one faulty wire or circuit going out in a complex system can lead to thousands of dollars to replace. The best companies will offer great phone support, but they may also ask that you have yearly maintenance done on covered systems – you may also need to know the exact date of purchase or installation for certain systems. If you don’t know what these are for sure, you may not be able to get much out of a home warranty.
When Don’t Home Warranties Work Out?
If you’re buying a brand new home or luxury real estate you probably won’t get much out of a home warranty. You’ll also want to check over the fine print to make sure they cover older appliances; searching out any clauses that are there to help the insurer avoid paying money out is helpful too. With the cost of maintenance rising, it never hurts to know if you’re getting the deal that’s best for you.
While we don’t know everything there is to know about home warranties, we do know homes! Give us a call today and see the difference that the Goodale Miller team can make for you.