Broad Ripple Random Ripplings
search menu
The news from Broad Ripple
Brought to you by The Broad Ripple Gazette
(Delivering the news since 2004, every two weeks)
Subscribe to Broad Ripple Random Ripplings
Brought to you by:
VirtualBroadRipple.com Broad Ripple collector pins EverythingBroadRipple.com

Everything Broad Ripple HomearrowRandom Ripplings Homearrow2007 07 13arrowRandom Rippling

back button return to index button next button
Converted from paper version of the Broad Ripple Gazette (v04n14)
The Word on Real Estate - Advice from a Pro: By Clark Giles
posted: Jul. 13, 2007

Home Warranties: What are they and do you really need one?

A warranty on your home usually covers all of your home's major mechanical systems, including hot tubs, pools, wells, septic tanks and all of your appliances. Some policies even cover the roof of your home and almost anything else you'd like to include, as long as it's specified in the policy.
Home warranties are obtainable for most any dwelling, including mobile homes, condominiums, town houses and manufactured homes. They can be purchased by either the buyer or the seller (or split); some sellers will include a home warranty policy to make purchasing their home more attractive. Including a home warranty with the sale is an excellent idea, especially if the home is older and the systems and appliances are aging. Since the policy can be purchased at closing, the seller doesn't have to come up with the premium out of pocket.
Home warranty policies are generally effective for one year and are renewable. However, you can expect to pay a little more for coverage each year, as the items covered continue to age. Policy costs vary according to the list of things covered, but an average cost would be between $350 and $500 per year. Obviously, when obtaining a policy, it is important to be specific about coverage. You can expect to pay a small co-payment when the repair person responds to make a repair. This is an industry standard. Your payment will range from $35 to $55 per visit.
These policies are not like hazard insurance, which covers losses due to fires, storms and accidents. Home warranties cover normal wear and tear breakdowns. Note: A new home and its major systems are usually warranted by the builder for at least one year. Be sure to understand the limitations and intent of your home warranty. As an example, should your microwave oven catch fire and damage your kitchen cabinets, your home warranty would cover the cost of the microwave; your homeowner's insurance would pay to fix the cabinets.
Before buying your home warranty policy, you should shop around and find the best and most cost-effective provider. Ask specific questions: Do they subcontract their work? What is their normal response time?
When trying to decide whether or not you need a home warranty, the rule of thumb is: the older your home, the more you will benefit from a home warranty policy. Most systems and appliances covered under a home warranty can be expected to last at least five years. Therefore, during the early years of your new home, the home warranty policy may not be necessary. As the components of your home age, the need for a home warranty policy becomes more critical. It is obviously more attractive to pay $400 or $500 in policy premiums than shell out several thousand dollars for a new furnace or even several hundred for a new refrigerator. The policy can pay for itself if a major home system has to be repaired or if a major appliance has to be replaced.


back button return to index button next button
Brought to you by:
BroadRippleHistory.com Broad Ripple collector pins EverythingBroadRipple.com
Brought to you by:
EverythingBroadRipple.com RandomRipplings.com Broad Ripple collector pins