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What You Need to Know About Home Warranties For Lakewood Real Estate

March 1, 2017

When you buy a new car, you’re often given the option of purchasing a warranty that protects you in the event that your car breaks down for one reason or another. But, did you know you can also get a similar warranty on a home? That’s right, home warranties are available to Lakewood real estate buyers. Here’s what you need to know:

What does a home warranty cover?

Protection will vary depending on the exact home warranty you purchase, however most warranties will cover damages related to a home’s appliances, HVAC, electric and plumbing systems. As you can see, this does not cover items that are typically covered by homeowners’ insurance, such as roof damage. This means in order to get full coverage, you will need to buy both homeowners’ insurance and a home warranty.

How much will it cost?

Surprisingly, home warranties are fairly inexpensive considering the amount of protection they provide. Most warranties can be purchased for as little as $300, and they rarely go above $500. Each warranty will typically last for a year, at which time the homeowner has the option of paying another fee to extend the policy’s coverage for another year.

What do you do if something that is covered by a warranty breaks?

Let’s say you move into your brand new home and quickly discover the refrigerator has stopped working. If you don’t have a home warranty, you will have to pay out of pocket to repair or replace the refrigerator. If you do have a home warranty, you should immediately call the company and let them know the situation. The warranty company will then contact a service provider who will visit your home to inspect the refrigerator. Most of the time, the service provider will be able to make necessary repairs right away that will be fully or partially covered by the warranty. If the appliance needs to be completely replaced, this may or may not be covered by the warranty, depending on what type of coverage you purchased.

What’s not covered by a home warranty?

If something was broken because you did not install it correctly or take care of it as you should have, the home warranty will probably not cover the cost of repairs. Home warranty companies also won’t cover the cost of repairs they believe were caused by unusual wear and tear. It’s important to read the policy carefully before you sign it to ensure you are receiving the coverage you need. For example, many home warranty companies will not cover swimming pools unless you specifically ask for this to be included in your policy. Find out if you need a home warranty

Now that you know the ins and outs of home warranties, are you ready to buy a new home? Talk to the professionals! Our agents can help you find the home of your dreams within your budget. Contact us at 720-220-2059 to talk to the experienced agents at Colorado Home Sales.