What is a home warranty?
When buying a home in New Orleans, particularly an older home, buyers are generally concerned about the life expectancy of the mechanical systems and appliances. Rightfully so. Air conditioners fail, hot water heaters spring leaks, stoves decide to stop lighting. The wonderful world of home ownership means that you’ll have to deal with those things as they come up. A home warranty can help ease your mind if you’re worried that something will break after you move in.
What’s covered by a home warranty?
There are several different levels of home warranties, but here’s what generally covered by them.
- Heater and Air conditioner
- Drain line stoppage and plumbing leaks
- Hot water heaters
- Garbage Disposal
- Electrical systems
- Garage door openers
- Trash compactors
- Built-in Microwaves
There are some premium warranties (at a higher cost, of course) that will cover swimming pools, roof leaks, slab leaks and septic tanks.
What’s the cost of a home warranty?
Every home warranty company is different, but the warranty will generally cost between $500-$600 for one year of coverage. Each time an owner has to call for repairs, there will be a trade call fee of $75-$100, which is substantially less than the average trade call for repairmen. Like any other insurance policy, there are limits to coverages.
PRO TIP: Ask your agent how to negotiate a warranty as part of your home purchase.
Renewing your home warranty
As a homeowner, you have the option to renew the warranty every year, but it’s at the discretion of the warranty company. Which basically means if you’ve had too many claims, they won’t renew after that first year.