Find Your Home Value
Home Purchase Tips & Advice
Home Buying Success: What You Need to Know About Short-SalesJuly 11, 2008
"Short sale" is a well-used term today; however, if you are looking at buying a home, is a short sale the best way to go? Can a VA loan help you buy your new home?
July 11, 2008
Buying a home has become harder to do as lending guidelines have become stricter. If you are a veteran, you may find you have the best chance of all in becoming a home owner. How to Save Money and Close Your Home Loan on Time
July 11, 2008
Underwriting guidelines have tightened and lenders are taking longer to approve home loans. What can you do to close your escrow on time? Who Benefits From a Home Warranty Protection Plan?
By Sheryl LandrumHome Worth Columnist
Send to a Friend
| 
Printable Version
Most real estate purchase agreements include a home warranty, which will be paid for by either the buyer or seller. However, does the buyer or the seller benefit from the warranty or is the benefit strictly to the home warranty company itself?
When selling your home, a home warranty can prevent calls and/or possible law suits by the new homeowners if something breaks within the first year of the home sale. Items that are covered in a home warranty are appliances, air conditioning, furnace/heating, electrical systems, dishwashers, ovens, ranges, garbage disposals, water heaters, ductwork, telephone wiring, ceiling fans, roofs, and inside plumbing stoppages. When buying a home, new owners have peace of mind that their new homes are covered if they should break or need repairs. Often a few hundred dollars is required for a one year home warranty protection plan. So, what happens if you need to use your home warranty?
According to Robert J. Bruss, a nationally syndicated real estate writer, "home warranty companies are notorious for denying legitimate claims." Make sure your warranty company is one of the reputable ones, especially if you're the one paying the premium.
Talk to your real estate agent before choosing a home warranty plan and read it before you buy. Not all warranty programs are created equally; discuss what is covered and how a repair will be handled. For example, a roof leak may be a covered expense, but not the work required to get to it. That could add $300 to the $500 home warranty coverage cost.
Source
"Mailbag:" The San Diego Union-Tribune, Sunday, March 18, 2007
About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage of San Diego at the Prudential Realty Office in Bonsall, California.