If you’re purchasing a re-sale home in San Diego be sure to ask for a home warranty. They normally cover you, the home buyer for one full year. Companies like American Home Warranty, Old Republic, and First American Buyer’s Protection are some of the more common ones.
Home Warranty programs are normally paid by the seller. They cover most mechanical systems in a home. They cost from $300.00 to $800.00 depending on the size of the home, options such as a pool/spa, and the company. Most will have a service call fee of around $30.00 to $60.00 per visit. Home warranties don’t cover structural issues and should never be used in lieu of getting a professional home inspection.
Home Warranties benefit home sellers as well because it reduces their post-sale liability. At times, disputes arise when something goes wrong after close of escrow. Rather than argue about a non-disclosure issue, the home warranty will fix the problem for a nominal fee.
Benefits for buyers include peace of mind knowing that appliances, heating systems, and plumbing are covered. It’s nice to know there will be no unexpected expenses for that first year. Let’s say your garbage disposal stops working a month after moving into your new home. Instead of paying for a new one along with installation, for the cost of a service call, you now have a brand new one installed!
Home Warranty options can include the following (depending on the plan):
The basic warranty plan is normally around $350.00 for a standard size home. Options run around $150.00 for pool and spa coverage, $75 for washer and dryer, $25 for refrigerator, and central air conditioning around $60.00. Each company is different, however.
Check the fine print on each Home Warranty Company for coverage and exclusions. Here are three that I have had satisfactory service from.
Notice that I said only SATISFACTORY service.
Just do a Google search on Home Warranty programs to find out many customers are unhappy. This is likely from higher expectations of coverage and the various sub-contractors that the services use. Sometimes you get lucky, other times you don’t.
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