A home warranty is a service plan that helps with repairs or replacement of certain systems and appliances when they break down from normal wear. It is different from homeowners insurance.
What it may cover
HVAC, plumbing and electrical systems.
Appliances such as the dishwasher, oven and refrigerator.
Optional add-ons, depending on the plan.
What it often does not cover
Pre-existing conditions, cosmetic issues, or breakdowns from lack of maintenance may not be covered. There can be limits and a service fee for each visit, so read the contract carefully.
When it can make sense
You are buying an older home with aging systems.
You prefer predictable costs over surprise repairs.
You are a seller who wants to offer peace of mind to buyers.
When it may not
If the home is new, or you have a healthy repair fund and are comfortable handling it yourself, a plan may not be necessary.
Questions to ask
What exactly is covered and what is excluded?
How much is the service fee?
How are the contractors chosen?
Not sure whether a plan fits your purchase or your sale? Ask me and we will talk it through.
