What is a Home Warranty Plan?
When purchasing a new home, it’s important to do in-depth research on all facets of the home-buying process.
One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong.
Check out the information on home warranty below to educate yourself on your options.
What is Home Warranty?
A home warranty is designed to cover the cost of repairs and replacements of larger appliances and crucial systems in your home that may fail or break due to age and wear and tear.
This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer.
With a home warranty, you are required to pay premiums year-round, even if you do not use it, and it won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.
Choosing a Home Warranty Provider
Your Agent will let you know when it comes time to choose the Home Warranty for your home purchase.
A good Buyer’s Agent would have negotiated the Seller pay for a home protection plan that will provide coverage to the Buyer after closing.
Any costs over the amount the Seller agreed to pay will be charged to the Buyer at closing and added to their closing costs.
It’s recommended you shop around for a reliable provider with a coverage plan that fits your needs and with a modest service call fee or deductible.
To help you get started, below are some brochures for a few home warranty providers who provide service in Southern Nevada.
Home Warranty Options:
The Difference Between Home Warranty & Home Insurance
Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail, however, damage from earthquakes and floods is typically not covered.
It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property.
According to American Home Shield, the average annual cost of a homeowner's insurance policy ranges between $300 and $1,000, and the bank usually asks you to obtain a policy before the mortgage is issued.
Make sure to keep in mind that each type of coverage in the policy is subject to a limit and, in most cases, you will have to pay a deductible.
