What Is a Home Warranty and Why Do I Need One?

What Is a Home Warranty and Why Do I Need One?

Your home is probably your single biggest investment.  For most new home buyers the last thing they need to worry about is an unexpected repair that can seriously strain their budget.  For peace of mind and as added protection against anything major that might go wrong with a home’s major systems, it’s a good idea to get a home protection plan.

It safeguards you against the financial strain of a major repair and for first-time homebuyers that have little or no experience in maintaining a home, this can be a real lifesaver.

What exactly is a home warranty?  It’s actually a renewable service contract that covers the repair or replacement of most of a home’s major systems.  Most home warranties will cover the plumbing, electrical, and  heating systems of the home and also some of the home’s major appliances such as refrigerators, dishwashers, and ovens.

The way it works is that the home warranty company contracts with local repair companies and servicemen to provide service.  If something breaks you call the home warranty company and they send an insured and approved contractor to do the work.  In most cases, you’re only out-of- pocket expense will be a small service charge to the contractor. All other work and replacement parts are assumed by the warranty company.   If it becomes necessary to replace any appliance or system, they will replace like with like or, in the case of a discontinued item, with the next closest comparable item.

If, as a seller of a home, you offer a home warranty to your buyer, then the coverage offers protection for the home the entire time it’s on the market  from the time it’s listed until one year settlement.  This gives buyers extra confidence in the real estate transaction; since they know that if anything goes wrong while the house is under contract, the home warranty company will fix it.  They don’t have to rely on a seller who might avoid investing more money into a home he’s trying to sell.

The best source for a Home Warranty company would be your Realtor since he deals with these companies daily and know which ones are the most popular ones with his home buyers.

As a Realtor I generally encourage both my home sellers and buyers to invest in a home warranty.  They range in price between $350-600 /yr depending on the company, location and coverage. It’s a small price to pay for peace of mind.

Harrisburg PA Real Estate Expert

Ken Huebsch is your premier real estate agent in the Greater Harrisburg area.  I am a specialist in Harrisburg real estate  as well as the communities of Palmyra, Hershey, and Hummelstown.  My wife Leslye and I have a combined 40 plus years experience serving our clients -We KNOW Harrisburg. When you plan to buy or sell Harrisburg area real estate, allow us to work for you.  We are dedicated professionals and are here for your success.  For more information on how we can best serve your real estate needs, please complete our online contact form or give us a call.  Also, check out what our fabulous clients have to say about us on our testimonials page!

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