A question I get all the time…..What is a HOME WARRANTY??
It is a great question and, in my opinion, a great thing to get when purchasing a home.
The home warranty I use is called Home Warranty. Clever, right?! Anyway, it is a company out of Iowa and our rep. Del stops in our office monthly to check in and is fantastic whenever my clients or I have a question! I am a big fan of having an actual person to talk to if questions arise.
On all Minnesota purchase agreements, the buyer has the option to elect to have a home warranty for the home they are purchasing. There is an option as to who pays for it as well. 9 times out of 10 the buyer elects for the seller to purchase the home warranty for them. On average they cost $555 which is for the basic home warranty. If you are buying a house that has a well, a pool or spa, jetted bath tub, water softner, or has older clay pipes you can opt for those options to be covered as well for an additional cost AND they just starting offering unknown pre-existing condition coverage for $75 more!!!
The basic home warranty covers the main mechanicals and appliances in the home. For example, if the house you purchased has the water heater go out you can call Home Warranty and they will send a local rep to your house to assess the issues with the water heater. There is a per incidence fee of $75 for them to come out but if the issue is not a preexisting issue Home Warranty will cover the expense to repair the item or replace it!!! Obviously, if your new home’s water heater is rusted and decaying when you purchase it, Home Warranty will not “buy you a new one”. Those situations should be addressed with your home inspector and Realtor prior to closing.
Home warranties aren’t just for buyers either. While your house is listed, sellers can have their home covered for 6 months FOR FREE!! We do this for all of our listings! Seller’s free coverage is a little different than buyer’s coverage but is a great thing to have, none the less.
There are several home warranty companies out there, so I suggest you do your research to find the best one for you. For more info on the company I use, and to see what is and is not covered, their website is http://www.homewarrantyinc.com/.
If you have any questions or would like to discuss more about home warranties give me a call/text/email.
Thanks for reading. Have a wonderful day!!