When Buying A Home, Should I Get A Home Warranty?

Home Warranty 101

A Home Warranty is an insurance policy against mechanical defects of the home.  If a mechanical item breaks down the home owner then calls the Home Warranty Company.  The company then sends out a technician to look at the defects.  The home owner will pay a $55 deductible and the technician will invoice the Home Warranty Company for all of the covered costs over and above that amount.

The basic cost of a Home Warranty policy can start at about $255 for condos and $275 for single family homes.  The basic plan for a home warranty policy will include items such as heating, plumbing, dishwasher, garbage disposal, garage door opener, water heater, plumbing stoppages, attic and exhaust fans, duct-work, electrical system, oven/cook-top/range, trash compactor, built-in microwaves, instant hot water dispensers, circulating pumps, toilets, sump pumps, and jetted tubs.  A home owner can pay extra for coverage on refrigerators, washer/dryer, air conditioning, and swimming pools/hot tubs.

If you are buying a home I recommend asking the seller to give a home warranty, if they are not willing to purchase one for you. I recommend you purchase one for yourself.

They are so common that it is a fill in the blanks of the Salt Lake Board Of Realtors Purchase Contract, section 10.3