What is a Home Warranty – What’s the benefit?

As home buyers, we usually depend on the home inspection to tell us everything we need to know about the “health” of the home we’re buying. One problem with that is home inspections can only tell us what’s currently wrong with the home and doesn’t necessarily prepare us for the unexpected repairs that may follow.

Home warranty plans are basically home systems service protection programs that cover repairs on things like refrigerators, dishwashers, HVAC units, plumbing and electrical systems. They are similar to health insurance plans, just for your house! Typically, a yearly fee is associated with a plan as well as a co-pay for a service technician to come out and evaluate and repair the issue.

In Texas, home warranty plans cost an average of $400 per year and cover a wide variety of systems in your home. Be sure to ask questions and read the fine print because there are some systems that aren’t covered in the initial policy and may require you to add them at an additional price. For instance, some policies cover all major systems, except swimming pool and hot tub equipment. This may be added at an additional cost to your plan. There are companies that allow you to pick and choose which appliances you want to cover.

So how does it work? If something goes wrong, you simply call the warranty company. They will arrange for a contracted service technician to come to your home to repair the appliance, however, you will be responsible for the service visit fee, which is usually around $75. Once they determine what’s wrong, the repair company will run it by the warranty provider to find out if it’s covered. Once they get approval, the repair technician will complete the work on the broken appliance.
A home warranty policy is something you should ask for if you’re buying a home. If you’re selling, offer one! It’s a great piece of extra protection and peace of mind when owning a home.

If you have questions, or need capable and trustworthy representation, please call me at 281-704-3749.