“What is a home warranty and what does it cover?”  This was a question my mom asked just the other day.  You may have the same question.  As the average age of a typical Woodlands home increases things begin to break and need replacing.  A home warranty is a policy that pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. There are several companies that provide this service.  American Home Shield is the company that I recommend.  Warranties can be purchased by either the buyer or seller. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It’s important that you read the policy closely and understand what is and is not covered.  Routine maintenance is usually not covered.  The cost for a one year home warranty typically runs between $300 and $600, depending on the size of the home and the specific types of coverage.  In addition to the policy premium, there is normally a deductible of $50 - $75 to pay when making a repair claim.   Additional policies for pool equipment and additional appliances can be purchased as well.

If you are buying a home and it doesn’t come with a warranty, you may want to consider paying for one yourself. The first year after buying a home is a time when most people don’t have a lot of cash on hand to cover problems that might arise. Having a one year home warranty in place can provide peace of mind during this time, and if something does break down, could really save your budget.  The policy is also available for renewal annually and in some cases can be charged monthly to your credit card.

Check out the different home warranties on the market.  Here is a web site to answer more of your questions.  www.ahswarranty.com

This entry was posted on Friday, July 18th, 2008 @ 2:17 pm on the category Homeowner Information. You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback from your own site.