A home, as you may know, is where the heart is. It is a place where a family gathers for meals and bonding moments. Most importantly, it is the most important and greatest investment one can ever make. This is why you need some form of coverage or protection for your biggest investment.
Simply put, a home warranty is a one-year renewable service contract protects you in the event your home systems or appliances fail to operate smoothly. It also protects your budget from unexpected repairs on these appliances and systems.
When Do You Need A Home Warranty?
In most cases, the need for a home warranty comes along when one purchases a home. A reputable and well-versed real estate agent may suggest a reliable home warranty company to the buyer. Choice Home Warranty is the preferred choice with many real estate agents and companies, due to our excellent service and professionalism.
The buyer and seller of any home often come to terms when it comes to negotiation. The seller may offer to pay part of the warranty coverage. The buyer may take care of the rest, or the seller could agree to pay the entire amount of coverage.
If the seller and buyer agree that the seller will cover the whole amount of the home warranty coverage, the seller will not be responsible for any future repairs or replacement once the deal is made.
Existing Home Sales
Buyers can choose to buy home warranty when they first buy their new home. The coverage protects you from replacement and repair costs (mechanical systems like electrical, heating, plumbing and air). This applies for anything that may occur in the new home from the purchase date until an agreed upon time.
Most states require contractors and builders to get a warranty for a newly constructed home. The home warranty protects the homeowner for a period of up to ten years. Just in case any major repairs or defects occur within the ten-year period after construction, the homeowner is not responsible. Any replacements and repairs will be covered by the company.
Under construction and pre-existing home purchases, home warranty service covers performance of main systems such as electrical, plumbing and HVAC, materials used. Different states may have slightly different requirements.
Colorado Home Warranty Company
Home warranty can be purchased by various groups of people who are involved in the home buying and selling process, from sellers, to homebuyers and even the real estate professionals.
Buyers buying a home under warranty
You can be more at ease when you buy a house that’s under home warranty, as compared to one without. System or appliances may break down over time due to wear and tear, or may occur unexpectedly.
However, with a home warranty, you won’t incur the high expenses of undertaking repairs. Thus, giving you some sort of a protection from the possible expenses of home repairs.
Sellers selling a home under warranty
There are many reasons why one should consider selling their home under Colorado home warranty. Some of the reasons may be:
- In the real estate market, homes listed under a home warranty coverage are more likely to be sold than ones that aren’t listed under a warranty.
- A warranted home may eliminate the doubt from the buyer about the state of the property.
- The seller benefits from the sale of a warranted home since there will be no reason to lower the selling price (due to the condition of the property).
- The seller escapes liability when the deal is done since a third party takes over. The seller will not have to deal with after service problems after the sale.
- In the course of the listing period, the seller obtains some benefits and security for offering a warranted home.
- Appliances and systems may fail during the listing period. The seller will only pay a service fee of for the repair and/or replacement of the covered item for each incident.
- In case of unseen or unknown defects of covered items—the items will still be repaired or replaced.
Real Estate Professionals selling homes under warranty
Home warranties help real estate professionals have a competitive edge when it comes to selling homes. Such professionals can always justify a higher selling price of the home by letting the buyer know that the home is under warranty and its systems were well taken care of.
Besides, a home warranty is a major advantage to any home sale because homes under warranty reduce liability.
Home warranties are simply good business. Buyers will always trust their real estate agents, as they know they have the best interest at hand.
Homeowners under home warranty
A homeowner under home warranty experiences the following benefits:
- Home warranty protects you the homeowner from unforeseen failure or breakdown to your home appliances and systems.
- Have access to in-house customer service team.
- No age limits on equipment, appliances, home or system.
- No home inspection required.
- Money back guarantees on warranties for 30-60 days.
- Access to variety of coverage options to suit your budget.
- Homeowners have access to contractors.
- Online access to warranty upgrades, confirmation, payments, and more.
Colorado Home Warranty Coverage
Choice Home Warranty offers a premier plan, suited for both buyers and sellers. The coverage includes payment for repairs or/and replacement cost case of breakdowns of appliances and systems covered under your plan.
However, there is a process for this. First, you will have to contact our company to file a claim. Then, if your claim satisfies the terms and conditions of your contract, and the system or appliance affected is covered under your plan, you will get reimbursed.
In addition, there a service call fee may apply if a technician comes to your home or has to assess the damage. The good thing is that our expert technicians are on staff and ready anytime.
Types of Coverage Plans
Standard Plan Covered items
This service plan is available for both the buyer and seller. The standard plan includes appliances and systems like trash compactor, ceiling fans, electrical systems, central vacuum, ductwork, plumbing systems, and toilets.
It also covers water heaters, built-in microwaves, refrigerators, garbage disposals, plumbing systems, sump pump, toilets, ovens, dishwashers, whirlpool bathtubs, garage door opener, central vacuum, exhaust fans, telephone wiring and electrical systems.
This service plan is available for buyers only. Optional coverage plan is available at an additional cost, depending on the type of equipment or system covered. It covers items such as gas fireplaces, well pumps, septic tanks, washers and dryers, air conditioners, pool or/and spa equipment and limited roof leaks.
Colorado Home Warranty Cost
Home warranty coverage comes into effect when a home warranty plan is paid upfront. You can pay per month or annually for complete protection. Appliances and systems are categorized and each category has its own price. The categories include:
- Kitchen/laundry – range, refrigerator, dishwasher, washer and dryer.
- Basic Built-Ins – Water heater, dishwasher, central forced air heating and cooling system.
- Full House – water heater, dishwasher, range, central forced air heating and cooling system, refrigerator, washer, dryer.
- Full House Plus – Water heater, dishwasher, range, central forced air heating and cooling system, refrigerator, washer, dryer, in-bound water pipes and electrical wiring.
However, if you want to protect additional appliances, you can always ask for a quotation and check the individual prices.
Saving money by comparing rates to repair appliances and systems
Home appliances and systems are prone to unforeseeable breakdown or failure. What follows next is the worry of unknown replacement or repair costs. Breakdown and/or failure of home appliances and systems and the expenses incurred either to fix or replace are bound to happen any time when you least expected.
Nevertheless, the thought of whether to have a home warranty or not– might have crossed your mind. First, you have to compare the rates to repair or/and replace the appliances and systems with or without a home warranty by asking for a quotation. Ask for a quotation and check if it is within your home budget and the allowance to save money.
Many home warranties only charge you service fee and/or modest fee of sending a technician to your doorstep. At the end of the day, you will notice that you have saved a couple of hundreds in repairing appliances and a couple of thousands in replacing mechanical systems through a home warranty.
How to avoid your home warranty contract being null and void
New homeowners need to be careful when they are purchasing a home especially a house which was previously occupied. They should read and understand the content in the service contract.
Here are some things to look out for and not to do to avoid your contract being void:
- Always consult your home warranty company first when your covered items fail. Do not call a technician before the approval for a repair or replacement from your home warranty company.
- Check if your contract covers a mechanical or appliance failure that existed before the close of an agreement will be covered. Some home warranties company’s covers pre-existing conditions on different levels.
- Your home warranty cover will be void if inspectors find mold, toxic materials, asbestos or hazardous materials.
- Always research for the best technician to fix your systems and appliances. Do not try to fix items that you don’t know how to properly fix, as bad diagnosis can cause greater issues to your systems.
- Your home warranty coverage will be void if it is evident that an appliance has been mistreated.
- Your home warranty coverage will be null and void if failure is caused by a third party like a pet and not by a normal failure like wear and tear.
- The contract will be void if the home owner changes his residency from residential to commercial.
How to Get The Most Out of Your Home Warranty
Ensure either a technician or the contractor properly installs your appliances. Look out for the proper licensing and bonding of your chosen vendor. You can also check the company out with the Better Business Bureau or the local Chamber of Commerce before hiring. Choice Home Warranty is fully licensed and in good standing with the BBB.
Some policies do not cover for appliances that are not properly installed. If you are installing it yourself, use a manual and follow the instructions to the latter.
If your appliance or system happens to fail, always call your warranty company first before you hire a third-party technician. Your claim could be denied if you don’t contact Choice Home Warranty first.
A warranty company may give you the option of choosing on your own technician or they may choose a technician for you, depending on the contract agreement. Some warranty companies will give you a list of approved technicians or contractors in case of emergencies. Our company is open to the customer using their own technician, as long as they provide us with notice first.
When the technician arrives at your home, have him ensure every item is running smoothly. Have him inspect your home for any code violations performed by the previous owner. Let him inspect all systems to be assured that they conform to building codes. Some companies will send their team to inspect your home before you even buy a policy.
Ensure multiple appliances are covered under your warranty. Also, have a routine maintenance schedule either yearly or seasonally to prevent any serious breakdowns. You can avoid the hassle of fixing the air conditioning and heating systems in a rush if you are well prepared.
You should also keep record of any maintenance in case you need to file a claim in the future. Whenever any system in your home fails, take a look at your warranty coverage to verify coverage limits and if it is included in the coverage.
Your warranty contract should contain a section that contains exclusions– items the policy does not cover. Get to know the itemized exclusions so you don’t waste time filing a claim that won’t go through.
Home Warranty In A Wider View
Many people often confuse a home warranty and home insurance. So, what is the real difference between a home warranty and home insurance? Below are some notable differences between the two.
Home warranties are service agreements that protects your home systems and appliances from breakdown or wear and tear. A home warranty comes to your aid to replace or repair such systems. Each time you request service there will be a service fee charge.
Home insurance is coverage that is required by your mortgage lender. It helps to protect you from liability in case someone gets injured within your property. Also, it protects you from risks like fire, severe weather, theft and secondary damages. When the homeowner makes a claim, the homeowner pays a deductible cost.
What Does A Home Warranty Cover?
There is a variety of a home warranty plans or coverages to choose from. Options depend on your home’s requirements. Always choose a plan that will cover most of your systems.
The basic plan may include heating systems, electrical systems, water heaters, kitchen appliances, etc. the optional coverage may include air conditioning, well pump, kitchen refrigerator, washer/dryer, pool equipment, etc.
Who Can Take Up A Home Warranty?
Anyone with a home can buy a home warranty. It is especially smart and a wise investment to get one if you recently purchased your home.
Before buying a warranty, though, speak with the seller of the home. There may be an active warranty on some of the appliances or systems, so you may only need to purchase Choice Home Warranty’s basic plan.
The best course of action is to give us a call at 1-888-531-5403 and speak with our sales department. We will help you with every step of the way, explaining what plan would be right for you.