HOME OWNER'S WARRANTY
A home warranty policy protects you from the expense of major repair or replacement caused by unexpected mechanical failure of a major system or appliance in your home. For a moderate premium (usually in the $400 range for a basic policy) payable at closing, you can acquire a policy which protects you for one full year after closing from major repair or replacement bills.
Most policies have a $50 to $100 deductible, and you must call through the HOW company for all repairs. The age of the home should be a consideration as to whether to purchase a warranty or not - a 15 year old home with original equipment versus a two year old home. Several companies offer these policies, and their terms of coverage and pricing may vary. Ask your agent for brochures on available policies in our area and compare carefully. If you are in a buyers' market or the condition or age of the home is a negotiating issue, a home warranty is negotiable and in some cases the seller may participate in the cost of the premium.