There is a basic policy and an upgraded version and there are exclusions and limitations to the policy. The policy costs between $225 -$300 for the basic or first class upgrade to the policy. Air condition, pool, spa, refrigerator, washer and dryer are at an extra cost.
Your local Realtor has several different companies to choose from and can best guide you with this.
It gives buyers a comfort level when purchasing older homes and easier sale for sellers. I just received a postcard from the HOW I purchased for my seller to pass onto the buyers - they had over $2,300 claims and only paid a couple hundered dollars during the past year - The policy helped selling the older home that was my listing. .
The new home buyer calls the Home Insurance provider if a covered item fails during the term of the Home warranty & typically pays a deductible for the HI to either repair of replace( within a $$ threshold) the item in question.
I hope this help you. .
Sharon Fitzgerald - Bernardsville, NJ
Most of the pamphlets I use with my clients are pretty clear as to what is and is not covered by their plan so it really is as simple as reading the brochure and getting the one that best fits your needs.
Hope this is helpful,
My clients have been happy and I always recommend that a seller pick up the cost for a buyer as an added incentive to make the buyer feel comfortable that the home is covered in case something should go wrong for a year after they purchase the home.
Frankly, I have found that the home warranty especially the first year of resales has been invaluable for my clients. $45-$60 service charge for the most part is what a new homeowner will pay for repairs or replacements.
Murphy's law always starts the day of close of escrow. I have had many clients make it a point to thank me for that first year home warranty that was included. It save them hundreds of dollars.
Buying a re sale home things happen. A small minimal fee up front vs coming up with hundreds for cash poor new homeowners makes a lot of sense.
If the homeowner is able to pay to continue the homewarranty I usually encourage them. I have much more positive feed back vs negative. My clients have had new dishwashers, stoves, furnace, A/C, electrical issues, various repairs taken care of.
I have carried the homewarranty on my home and the repairs I needed done would have cost much more than the cost of the home warranty.
It is personal choice, home work and look at the fine print....
One has to look carefully at the manufacturer''s warranties especially on HVAC systems...one good example is an energy efficient system that has a 14 SEER system with a 10 yr warranty versus the standard 13 SEER system with only a 5 yr warranty...when it comes time to sell the property, the potential buyer will have a great advantage / reduced risk with the 10 yr warranty, and may require less of a home warranty.
To add to that, warranty companies are betting nothing will go wrong, you are betting something will go wrong, Its like saying your going to win at the slots, you could...it does happen. But in the end the house always wins.
The approximate cost here in south/central NJ is $400, covers many features for the seller for the term of the listing whether the house sells or not. If it does sell, it is then extended (1) for a year from closing and (2) adds add'l coverage free of charge for the buyer. Buyers can also add more options. PAYMENT of the plan is made at closing, so if a seller lists, is successful with a claim and the house never sells, they do not how the $400 for the plan.
I do agree with posters below that it is an attractive feature for buyers when considering older homes or when they can readily notice that certain items are beyond their useful life.
Good questions Happ, u certanly do your homework!