Whether you are buying a new home or selling your existing home, you may be asked if you would like to purchase an Arizona home warranty. Many people are unsure of exactly what a home warranty is, what it covers and how it differs from homeowners insurance. Here are the basics of a home warranty.
HVAC In Arizona
An Arizona home warranty is essentially an insurance contract that lasts for a specified amount of time. It protects the buyer from unexpected repair or replacement costs of built in appliances and mechanical systems. For instance, water heaters, dishwashers, garbage disposals and typically covered as are the HVAC, plumbing and electrical systems. A basic home warranty typically costs a couple of hundred dollars. The size of the home does not affect the price, but the number of appliances does. Additional coverage can also be purchased for appliances and amenities that may be included in the sale of the home including washers, dryers, refrigerators, spas, pools, intercoms and home theater systems.
A home warranty covers problems that arise from everyday wear and tear. It is designed to protect the buyer from unexpected repairs and expenses that may occur shortly after the sale of real property. It also protects the seller from potential legal problems that may arise if the buyer feels the seller failed to disclose the condition of the appliances. A homeowner’s policy, on the other hand, covers damage that occurs to your home from hazards, natural disasters, theft and/or vandalism. It does not pay for replacement costs of appliances that break down from everyday usage.
Home warranties are available for most every type of dwelling including single family homes, duplexes, condos and vacation homes. A common misconception is that an Arizona home warranty is only beneficial for older homes, but in fact they are just as beneficial in newer homes as well. Obviously there is more risk of older appliances breaking down. The quality of many name brand appliances is decreasing, however, and more and more computerized components are being added which increase the chance of malfunction. For this reason, it is important to purchase protection even on new or upgraded appliances. Furthermore, unless you are purchasing a new construction home the manufacturer’s warranty on appliances is typically voided with a secondary owner.
Sellers may include an Arizona home warranty with the sale of their home in an effort to make it more appealing to buyers and give the listing a competitive advantage over similar properties. Anyone can purchase a home warranty, however. If a home warranty is not included in the contract, a Realtor may be able to negotiate one into the contract for the buyer. If not, the buyer is well advised to purchase a home warranty on their own. The purchase prices in nominal compared to what a major repair would cost.
You can also extend the term of an Arizona home warranty if you so choose. It has been estimated that over 60 percent of properties have at least two major mechanical or appliance failures within three years of purchasing the property. Many people find it is worth it to extend the contract for a few more years.