If you’re purchasing a re-sale home in San Diego you’ll want a home warranty. Companies like American Home Warranty, Old Republic, and First American Buyer’s Protection are a few of the more common.
Home Warranty programs cover most mechanical systems in a home and are typically paid by the Seller. They cost from $300.00 to $800.00 depending on living space, options, and company. Most have a service call fee of around $30.00 to $60.00 per claim. Home warranties don’t cover structural issues or should they ever be a replacement for a professional home inspection.
Benefits for Sellers in providing a Home Warranty include after sale disputes if 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 the Buyers are some peace of mind knowing that appliances, heating systems, and plumbing are covered. Nice not to have an unexpected expense for that first year.
Home Warranty options include the following:
- Refrigerator – normally considered personal property unless a built-in like a Sub-Zero.
- Washer & dryers.
- Roof leaks (Limited)
- Garage door openers – some provide in up-graded coverage.
- Pool, pool and spa.
- Central air conditioning.
The basic warranty plan is normally around $300.00 for a standard size home. Options run around $150.00 for pool and spa coverage, $75 for washer and dryer, $25.oo for refrigerator, and central air around $60.00. Each company is different.
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 satisfactory service.
Just do a YELP search on Home Warranty programs to find out many customers are not happy. This is probably from higher expectations of coverage and the various sub-contractors that the services use. Sometimes you get lucky, other times you have no idea why they selected the service provider.
I tell my Clients it is really for peace of mind on small repairs, but don’t expect much more. I still believe they are a good thing to have. The last home I owned it certainly paid for itself threefold.
Once again don’t rely on a home warranty to a professional home inspection – read my 5 tips here. If you have specific questions please give me a call at 858-352-8280.