The Advantage
of Offering a Homeowner's Warranty in Selling Your Home
If you plan to sell your home,
your agent might advise you to purchase a homeowner's warranty policy
as this would improve your chances for a good sale. What, after all, is
it all about? And why does this improve the chance of finding a better
deal when you sell your home?
The home warranty is a kind
of insurance that provides coverage for repairs (or replacements if
repairs are not possible) of any appliances or major systems that are
installed in the home. This typically includes such things as ceiling
fans, disposals, plumbing stoppages, water heater, and similar items.
Coverage may additionally include items by specific listing, such as
the central A/C and refrigerator. The basic idea is comparable to the
homeowner insurance, but while homeowner policies provide coverage against
risk of damage to the structure and the property within caused by extraordinary
events such as theft, the home warranty covers the ordinary risk of
having failures of systems and appliances that are a part of the home.
If you pay for a home warranty
you are protected from having to pay the cost of repairs if any of the
covered systems or items in the home fail. There will be usually only
a nominal service fee that is charged when the technician makes a visit
for repairs. These payments, which are set in advance, are generally
negligible when you compare them with the costs one would incur if the
system or appliance had to be replaced.
Depending on the premium
you are willing to pay, you would need to decide the policy term for
which you will commit. There are policies that last a year, usually
renewable and there are longer home warranty contracts. Normally, a
longer contract will give a lower cost per year.
As with all other insurance
policies, the home warranty comes in various flavors and you will find
a variety of quotes from different providers. In order to ensure that
you get a good deal, you really have to look into several sources. Using
the Yellow Pages or the Internet, or asking your agent, makes it easy
to get yourself well-informed so you can make a good choice.
Whether ready to sell, or
planning to live in the home for a long time, a homeowner can benefit
by having a home warranty policy.
Information presented by
the ultimate Colorado
real estate experts at Automated Homefinder.
