While looking at re-sale homes, you might see a sign rider that says “this home is covered by a home warranty”. Sounds good, right? What does it really mean?
A home warranty covers specific features of a home, based on the plan that was purchased. It is often paid for by either the seller or the listing agent to entice buyers and make them feel at ease with this big purchase. They usually run upwards of $350 for a one year coverage plan. Sometimes, owners choose to extend the policy past the one year and pay the second year premium themselves.
How do they work? Read the home warranty information carefully and determine if the problem is covered by the warranty. Call the 800 number provided and they will dispatch a licensed tradesperson. You will need to pay a service call fee (about $50 usually). I’ve seen them cover hot water tanks, furnace repairs and frozen pipes.
More questions? Feel free to contact me.
Olympia Real Estate Blog 