The Advantage of a Homeowner's Warranty When You Sell Your Home
If you are in the process of selling your home, you will probably face the decision of buying a homeowner's warranty as this would improve your odds of making a successful sale. What is it all about? And how does it improve the chance of getting a better deal when you sell your home?
OK, What Is It Anyway?
A home warranty is a type of insurance which provides coverage for repairs or replacements of any appliances or major systems in the home. This typically includes such things as range, plumbing stoppages, exhaust fan, overhead fans, heater, electrical, waste disposal, and similar items. Coverage may additionally include items such as the spa and refrigerator if they are specifically added. The concept is similar to the regular homeowner insurance, but while regular insurance is designed to provide protection against risk of damage to the house and the belongings contained within that are caused by environmental factors such as fire or wind, or occurrences such as breakins, the home warranty covers the ordinary breakdown of systems and appliances that are installed or used in the house.
Those who have a home warranty do not have to pay the cost of repairs if any of the covered systems or items in the house stop functioning. There is usually only a nominal service fee when the technician makes a call. These fees, which are set forth in the contract, are quite small when you compare them with the expenses one would incur if the system or appliance would have to be taken out and replaced.
Depending on the premium you are willing to pay, you would need to decide the contract length for which you will sign up. There are warranties that last a year and there are longer contracts up to lifetime. In general, a longer period will have a lower annual fee.
The home warranty comes in various flavors and you will find a variety of quotes from the available companies. In order to ensure that you get the best deal, check around and look into a few sources. Using the internet, or just asking your agent, makes it a snap to get yourself educated on the subject.
Whichever type you choose, having a home warranty is a definite advantage for a homeowner.
Article presented by Automated Homefinder, your Colorado Louisville real estate experts.