What Is a Home Warranty and Why Would I Need One?
I can personally attest to the value of a Home Warranty. Ours has consistently paid for itself year after year. I generally recommend a Home Warranty for both buyers and sellers but I’m not sure that it’s cost effective in every situation. On the other hand… you just never know. If your home is brand new a warranty, usually provided by the builder, is helpful in the event that something has gone awry or unnoticed during construction. When your home reaches a certain age, maybe 12 – 15 years, appliances might begin to break down and systems should be inspected. At around 20 years roofs and pools generally need some serious attention. Most Home Warranties even cover maintenance checks.
Some Home Warranty companies provide better service than others. I’ve used several different companies over the years and I’ve found that the ones with local Reps are the easiest to deal with and the most responsive. As a matter of fact my current Rep Joe Duffin with Landmark Home Warranty, is particularly service-minded, and I didn’t hesitate to renew my policy this year. Joe and Landmark are always on my list of recommendations to clients.
For a home seller, a Home Warranty would kick in if an appliance or system stopped working while the home is on the market. Imagine the inconvenience of this happening right when you’re about to sign a contract with a buyer.
The National Home Service Contract Association (NHSCA) defines home service contracts, or “warranties,” as contracts offering repair, replacement or service for major appliances and systems that break down as a result of “normal” use. Home service contracts, according to the Association, are a significant means of savings for homeowners, with coverage ranging from kitchen appliances to HVAC systems and pools.
“The wholesale value of these contracts easily exceeds $1 billion in savings to consumers annually,” said Mike Bartosch, president of the NHSCA, in a recent statement.
Home service contracts are not the same as homeowners insurance. Said Bartosch, “Home service contracts and homeowners insurance policies are mutually exclusive products in all 50 states. NHSCA members are not insurers and do not sell an insurance product. Further, insurance products don’t cover service, repairs or replacement to home systems and appliances required as a result of normal wear and use.
“If a system or appliance stops working, contact your home service contract provider,” Bartosch added in the statement. “If a home system or appliance is damaged by a falling tree, catches fire, or is subject to vandalism, contact your insurance agent.”
Real estate professionals often suggest home service contracts—in this case, “warranties”—to home buyers and/or sellers. The term “warranty,” according to the NHSCA, refers to the seller’s action of purchasing a service contract for the buyer should issues arise during the first year of ownership. If you’re a buyer or seller, consult with your real estate agent or broker to learn more about the options available to you.
For more information, visit HomeServiceContract.org. Source: National Home Service Contract Association (NHSCA)
Authors Note: Landmark Home Warranty is pivotal in providing invaluable service to those in need through the Landmark Home Foundation. The program assists folks with limited resources to repair or replace malfunctioning systems and appliances.
AZVHV- Arizona Veterans Helping Veterans recently had the privilege of working with Landmark Home Foundation when an Army Veteran in Tempe, AZ contacted us about his broken Air Conditioner. Arizona heats up fast in May and this wonderful retired couple was living without AC. Landmark found the correct parts and worked diligently to coordinate with AC repairmen to get the job done before the scorching summer heat set in. We can’t thank them enough!
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