To Help Sell Your Home, Provide a Home Warranty
If you are in the process of selling your home, your agent might advise you to take out a home warranty. What is it all about? And how does it improve the chances of getting a better result when you sell your home?
The home warranty is a kind of insurance that covers repairs (or replacements if repairs are not possible) of any appliances or major systems that are installed in the home. This typically includes such things as range, food disposal, water heater, exhaust fans, ducts, built-in microwave, plumbing systems, and related items. Coverage may additionally include items such as the refrigerator and spa if they are specifically included. This is similar to the more common homeowner insurance, but while homeowner insurance provides coverage against risk of damage to the house and the personal belongings inside it caused by external factors, or events such as break ins, the home warranty provides protection from the ordinary failure of systems and appliances that are installed or used in the house.
If you purchase a home warranty policy you are protected from having to pay the cost of repairs if any of the covered systems or items in the house break down. There will be usually only a nominal fee when the technician makes a house call to repair something. These fees are negligible when compared to the costs one would incur if the appliance would have to be torn out and replaced. Usually, the cost of a home warranty policy is less than a homeowner policy. This is because of the more limited range of hazards covered and the lower cost of what is covered.
A great advantage with home warranty is that it could be obtained without any regard to the type of house. A home inspection might even be waived. The contract will indicate what is included in the policy and what is not.
You will need to decide on a length of coverage. There are warranties that last a year, normally renewable and there are longer policies up to lifetime. In general, as with many things, a longer period will give a lower annual cost. If you are selling, though, and using the home warranty as a selling point for a prospective buyer, just offering to buy a contract for a year’s period is typical. Then the new homeowner will decide whether to renew or not.
As with all other home insurance instruments, the home warranty comes with various features and you will find a variety of different quotes from the available providers. In order to get the best deal, check around and investigate several sources.
If you are ready to sell, or even if you are staying in the home, having a home warranty can be a worthwhile and inexpensive form of insurance for a homeowner.