A home warranty is what we like to refer to as Murphy’s Law Insurance. It is a policy that lasts for a year and is renewable annually and it covers many of the mechanical systems of the house. By covers we mean that if one of the covered systems breaks, this company will send someone out, for a nominal fee each time, to evaluate in and in most cases will pay to have it repaired or replaced if repair is not possible. Common systems covered by these policies are:
- HVAC systems
- Stove / Oven
- Water Heater
The full list of covered systems depends on the policy you choose. They are great to have and we often times try to negotiate the first year cost of the policy into the contract to have the seller pay for that first year. We say its Murphy’s Law Insurance because if something is going to go wrong with the house, it usually happens right after you move in. These policies often pay for themselves many times over, especially when it comes to costly repairs involved with HVAC systems. Your buyers agent will arrange for the policy to be paid for at closing by the seller if it was agreed upon in the contract, or if that was not part of the deal, you, the buyer, can always pay for it at closing as well. We can arrange for this within just a day or two prior to closing if need be and will take care of the logistics for you.