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What is a Home Warranty Plan?

Home warranty plan

A home warranty plan could save you from some unexpected expenses.

After months of work preparing to move into your new home, you have finally moved in and everything seemed to be going well until the central air conditioner stops working in the middle of the heat wave. Is it just terrible luck or is it Murphy’s Law in action? Either way, you now have to pay hundreds or thousands of dollars to get the air conditioner fixed or install window units. The last thing a home buyer wants to worry about is something breaking or malfunctioning in their new home. This is the reason why so many people opt for a home warranty plan. But what is a home warranty plan? Let’s take a look!

What is a Home Warranty?

A home warranty is typically a one-year service contract that is designed to protect your household from unexpected and costly repairs to the systems of your new home and appliances. These contracts are renewable and can last for the lifetime of your home as long as your systems keep working. This is often an optional coverage for the home and is up to the buyer to purchase it for their new home. Depending on the home warranty company and the coverage, these plans can range from $300 to $500 and may be renewed for a somewhat higher price after the first year. So what do these policies cover? Read on the find out!

What Do Home Warranty Plans Cover?

Although it will depend on the coverage you select, some systems that are covered include:

  • Air conditioning
  • Furnaces/Heating
  • Dishwashers
  • Doorbells
  • Water heaters
  • Ductwork (to code only)
  • Garbage disposals
  • Inside plumbing stoppages
  • Ceiling fans
  • Electrical systems
  • Range and oven
  • Telephone wiring.

These systems are only covered if the problem occurs AFTER the purchase so make sure everything works before purchasing the home. Some things that are not covered include:

  • Outdoor items like sprinkler systems
  • Faucet repairs
  • Spas or pools, unless specified
  • Permit fees
  • Haul-aways
  • Items broken before closing
  • Exclusions noted in policy
  • Items that are in code violations, have been improperly maintained, have usual wear and tear, or improperly installed.
  • Many plans do not include refrigerators, washers, dryers, or garage door openers.

For more information on your specific plan or to add systems into your plans, talk to your Simply Referable real estate agent before closing on your new home. For more information on finding your new home and a new home warranty, call us today!

Home Warranty Plans with Simply Referable

Together, with your Simply Referable team, you’ll cut the right deal for the right price with qualified guidance every step of the way. Every team member is committed to selling your home and forming a lasting bond with your family. Thanks to our roots in the Maryland/DC region, we can help you find your dream home. Contact us online and give us a call at 410-983-9045. To see some of the stunning homes we work with, follow Simply Referable on FacebookTwitterGoogle+PinterestYouTube, and LinkedIn.