What is a Home Warranty? Is it worth it? Let's look into it...
A home warranty is a year-long service you pay for so when it comes to repairing items covered under the home warranty, you don't have to pay the actual cost of repair. For example, paying to repair the heating system could cost upwards of $3000-4000. Instead, you would pay the home warranty's service fee and they would repair it for a much lower rate.
Each home warranty has their own fees and coverages. What is nice is that you can structure or "build" a package to works for your situation and home. Are you buying a home that is in a rural area? Maybe you don't have city utilities...You can add on Septic and/or Well coverage to your package.
Buying a home warranty when you buy your house is the best time because they give you a discounted rate. As opposed to buying a similar appliance warranty through third party companies.
When the year is over, you can choose to renew the plan, or let it lapse.
Another great reason to get a home warranty is this- Say you are in escrow and getting inspections done on your "soon-to-be" home. Maybe the inspector mentions that the heater is older. It's operating so far but it might not be working so well later...you know you have that home warranty in your pocket!
So, if you are considering purchasing a home warranty before you close on your house, tell your Realtor so that they can make sure to order it for you. They will bill the invoice to escrow and it'll get paid out of the closing costs. Or, when making an offer on a home, you can ask the seller to pay for it. There is a section in the Residential Purchase Agreement (offer) that you can fill out with the request for a home warranty.