Should You Purchase A Home Warranty?
Purchasing a Louisville home is a big investment and after closing, you do not want to worry about unexpected costs that come from something breaking or malfunctioning. A home warranty can protect you from unexpected expenses. Because of this, Family Realty offers a free, one year home warranty to our clients.
Home warranties began in the early 1970s as an additional protection above homeowner's insurance. Warranties cover the cost of repair or replacement of systems or items that malfunction due to normal wear and tear. These warranties can cover appliances such as refrigerators, dishwashers, clothes washers and dryers and systems such as heating/air conditioning, interior plumbing, electrical systems, and telephone wiring.
Local customs dictate whether the buyer or seller's side covers the cost of the warranty, which can range from $250.00 - $400.00. In Louisville and many areas, it is customary for the seller to offer a free home warranty as part of the deal. If you are choosing between two properties, and one seller offers a home warranty, there's an incentive to choose that home over the other.
If a covered item malfunctions, all you have to do is call the warranty company. The warranty company already has an arrangement, with a provider, so they have the provider contact you to schedule an appointment to come out and attempt to repair the item. Depending on the coverage, if an item cannot be repaired, it will be replaced. There is also typically a small service fee the homeowner will be expected to cover. Coverage can be denied based on improper installation or maintenance, code violations, or unusual, excessive wear and tear.
Home warranties are an especially good idea for first-time homeowners, who may not have much experience in home maintenance. Plans differ in what they cover, so please discuss, with your real estate agent, the available options and if a warranty is right for you.