When you purchase your next home, most of the time the seller will pay for a one year home warranty for you.
Let’s say you just moved into your new home and the garbage disposal stops working, or the air conditioner is blowing hot air. All you have to do is call the home warranty company, pay a small service charge (approx. $75) and they will fix or replace the broken item.
I’ve had clients get a brand new air conditioner compressor that would have cost about $2000 for $75!
Here are some things you need to know.
- You can choose any company you would like to use. Google “Home Warranty Company” and you’ll have plenty to choose from.
- The seller will usually pay for a basic policy with some upgrades (depending on what you put in the purchase contract). However, there may be additional coverage you would like to add at your cost.
- Generally speaking, a basic policy will cover the basic systems of the house. That includes heating/air, water heater, plumbing, dishwasher, garbage disposal, etc.
- You should always read the policy and coverage brochure before or during escrow so you can choose the company and coverage you want.
- You typically have a window of time after the close of escrow (usually 60 days) to add additional coverage at your expense.
- It can be to your benefit to choose the company your agent recommends because he/she probably has a good relationship with the local rep and can often help get problems you may have resolved quickly.
- It up to you to renew the policy each year or lose your coverage.
- Speak to a local rep before you make your final decision. She/he will help you determine which is the best coverage for your home.
If you are one of my clients, here are a couple of Home Warranty Companies I recommend. They offer excellent coverage and I have a great relationship with the local rep if there’s ever a problem.
American Home Shield
Rep: Debra Block 818-669-8288
Website: American Home Shield
American Home Shield Brochure – PDF
First American Home Buyers Protection
Rep: Tamara Rossie 805-573-0698
Website: First American
First American Coverage Brochure – PDF
