A home warranty is an insurance plan for the appliances and mechanical systems in your home.
WHAT DOES A HOME WARRANTY COVER?
A home warranty will cover damage caused by everyday wear and tear. If your dishwasher stops working because the drain is clogged, the home warranty company will cover it. If your dishwasher breaks when a child jumps on the door, the home warranty will not cover that.
WHAT IS THE DIFFERENCE BETWEEN A HOME WARRANTY AND HOMEOWNERS INSURANCE?
Homeowner’s Insurance protects you financially in the event of unforeseen damage to your home caused by an uncontrollable event such as a fire, windstorm or sewer backup
A home warranty protects your home’s appliances and mechanical systems (i.e. electrical, HVAC, and plumbing systems) as they age.
For example, if your water heater stops working, then the home warranty is in place to repair it. However, a home warranty will not cover roof leak caused by a falling tree branch.
WHAT IS THE COST OF A HOME WARRANTY?
Costs vary depending on the size of the home and the cost of the deductible. Most home warranties cost in the range of $500 to $750, annually, and the deductible ranges between $75 to $125 per service call.
IS BUYING A HOME WARRANTY WORTH THE MONEY?
That is a purely personal decision depending on your tolerance for risk and your financial situation.
A home warranty can provide peace of mind and limit the upside of any appliance or mechanical system repair. With one phone call the problem is fixed.
On the flip side, if you don’t use the warranty, then the money is gone.
IS THERE AN ALTERNATIVE TO A HOME WARRANTY?
Yes! You can self-insure. Instead of paying for the cost of an annual policy, take that money and stick in a savings account every year. When a repair is needed then you will have the money on hand for the repair or replacement.
If you have a real estate related term you would like defined, shoot me a note at email@example.com and we will answer it for you.
In the meantime, remember - BE A NICE HUMAN.
Author:Alexander Necker Phone: 410-920-4760 Dated: February 12th 2019 Views: 94 About Alexander: ...
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About Alexander Necker, Real Estate Sales Consultant
I specialize in selling the Baltimore Metropolitan’s Premier Homes.
I am an Eagle Scout. I mention this because the process of becoming an Eagle Scout provided me with the foundation by which I live my life. The values of trustworthiness, integrity, and helpfulness have allowed me to become the man I am today.
The words that describe me are:
Driver of my own professional destiny
C onduit for connecting people for professional development
Devoted husband with a wonderful wife
Father to 2 beautiful children with growing college funds
Student of Finance and Investments
After graduating college and starting a career in my field of study (agronomy), I quickly rose to the position of assistant and then superintendent of private golf courses. After 17 years in the golf business, I decided it was time to change to a career where I would not be at the mercy of the uncontrollable forces of sun, wind and rain. I chose a field where I would be the master of my fate, where the hard work and the long hours to which I am accustomed would be the determinant of my success.
The primary reason I am in the real estate business is to help people. A real estate transaction is one of the largest financial transactions you will ever undertake. Everyone deserves a real estate partner that understands and appreciates that fact. My focus on integrity, trust and communication are nothing less than I would want for myself, my family or friends entering into a large financial proceeding. I am committed to being the one real estate agent that keeps my client's best interests front and center.
In real estate, I consider myself to be a true professional in the same vein as the physician, the attorney and the accountant whom you must trust with the most important assets of your life. Nothing less is acceptable.
Your Burning Real Estate QuestionsJon from Perry Hall wants to know…
I appreciate all your assistance in selling my house. You made the process so easy and so quick.
When we first met and discussed the price, I had my mind made regarding the price. After you reviewed the current market with me, I took your advice and listed it for $20,000 less than I originally thought and I am glad we did. If we had listed at my price, we would still be trying to sell it. Instead, it was under contract in 14 days with three offers. Having multiple offers was a great feeling!!!
I also wanted to let you how impressed I was with your communication. I always knew what was going on with the inspections and the buyer. Our weekly and sometimes daily phone conversations really made me feel comfortable that there weren't going to be any problems with the settlement.