• Lots of things you buy come with a warranty in case they break down, from cars to smartphones. But what about homes? Yes, you can get a home warranty, too.
  

So what is a home warranty? In a nutshell, it’s a policy you pay for that covers the cost of repairing many of your home appliances if they break down. They provide financial protection for homeowners who might be faced with unexpected problems with their appliances.

In San Diego County, home warranties are often negotiated as part of the home purchase.

What does a home warranty cover?
Don’t mistake a home warranty for homeowners insurance, which covers your home’s structure and belongings in the event of a fire, storm, flood, or other accident. A home warranty, in comparison, will cover repairs and replacements on systems and appliances due to normal wear and tear—no calamities required.

A home warranty generally covers items such as:

• Electrical systems
  
• Plumbing systems
  
• Heating and cooling systems
  
• Washer and dryer
  
• Kitchen appliances such as the oven, range, and garbage disposal

How much does a home warranty cost?
While home buyers are often required to get homeowners insurance along with their mortgage, home warranties are a fully optional purchase. Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans. A homeowner can add extras if needed, such as coverage for a swimming pool.

Benefits for home buyers and sellers
A home warranty benefits home buyers by providing reassurance that they can move in without worrying about shelling out even more for surprise repairs.

A home warranty can also benefit home sellers, since it can cover these elements during the first year of the buyer's ownership. This helps protect the seller against any possible buyer claims regarding appliance breakdown, etc.

Typically home warranties aren’t necessary with new homes, since most of the appliances are already covered under manufacturers’ warranties. But in general, the older your home, the greater the odds are that something’s bound to break, and the wiser it is to get a home warranty. Best of all? Many companies don’t differentiate between newer and older homes in terms of cost, making a warranty an especially cost-effective option if you are purchasing an older home.

What to do if something breaks
If something covered under your home warranty breaks, you just call your provider and they will arrange for some to address the issue or connect you with a qualified contractor in your area. One thing to remember is that a home warranty does not mean you pay zero as typically you’ll have to pay for a service call or a certain amount of the bill up to your deductible first.

When it comes to having a home warranty, it is a good idea for people who lean toward the “better safe than sorry” approach when buying a home.

Source: Realtor by Cathie Ericson