What is a home warranty plan?
Where to start from is to know what a home warranty plan is; this will help you to determine the necessity of it. A home warranty plan is a service contract made by the warranty company or an insurance company to fix any home appliance default irrespective of the age of the appliances. This contract offers protection through repairs or replacement of the appliance.
Benefits of home warranty policy:
Adequate coverage:
Most times covers essential appliances in a home, leaving the less important ones. This coverage actually prevents any home owner to fall short during emergency default of those appliances. You are basically secure that the company will definitely cater for the repairs and sometimes the replacement of the appliance irrespective of the age of the appliance.
Availability of technical aid:
If any of your appliances is having problem, you don’t have to have your mind bog about who to call, the company has many technical providers that can handle and repair your appliances without you losing your sleep.
It improves the sale value of the house: if you are desirous to sell your home, having a home warranty will do a lot to boost the value of your home. Buyer tends to respond better to this better than if the home is not on warranties.
Your home appliances are protected:
Having the assurance that when you run into trouble with your home appliances in an odd period of the month, you don’t have to seek an emergency loan is a solace to all homeowners having this policy. The company will assist in the repair and probably the replacement of such appliances.
Who pays for the plan?
This varies from locality to another. Any party can pay, that is, either the buyer or the seller or even both. However it would be advantageous for the seller to pay for the plan to prevent the buyer’s constant call to the seller to fix one thing or the other. For then, the company will take full responsibility of repairing any appliances required by the buyer after the closing. Both parties can cut a percentage of the cost of a home warranty.
Who pays for the plan?
This varies from locality to another. Any party can pay, that is, either the buyer or the seller or even both. However it would be advantageous for the seller to pay for the plan to prevent the buyer’s constant call for the seller to fix one thing or the other. For then, the company will take full responsibility of any repairs required by the buyer after the closing. Both parties can cut a percentage of the cost of a home warranty.
The cost of the plan:
Home warranty plan could cost less than $500 per year but they have to be paid in advance and they are renewable after a year. Some warranty companies inspect the property ahead of time to determine what exactly to charge for the coverage.