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What is a Home Warranty?
Buying a home can be a stressful time and for a lot of people and a time where we put a large amount of our saving or nest egg as a down payment. The last thing we need to happen shortly after close of escrow is something major and unexpected to break that can be very costly! This is where a home warranty comes into play and why I highly recommend getting one at the time of purchase. The cost for a 1 year policy is usually between $400 - $500 and most of the time as a buyer you can get the seller to buy it for you. (Assuming you have a good agent representing you that knows how to negotiate for you).
How is this different from home owners insurance policy and why would I need both? Well, home owners insurance is something you definitely need and most of the time is
required if you have mortgage by the lender. However, this policy is meant to cover major things like a fire, flood, or natural disasters. A home warranty is for things that are a little left major.

So what is a Home Warranty? And what does it cover?

The exact coverage depends on the specific warranty you purchase but generally speaking a standard policy covers things like:

- Water heater
- Dish washer
- Cook top
- Oven
- Exhaust fan
- Garbage disposal
- Garage door opener
- Toilets
- Plumbing
- Electrical systems

However there are also "ad on's" that don't increase the initial cost of the policy too much and I would recommend considering like:
- Central AC & Heat
- Refrigerators
- Pool and spa (if applicable)
- Roof

How does using the warranty work? It's really very simple. Something breaks, you
call the home warranty company, they pull up your policy to make sure it's
covered, and if it is they send out a 3rd party company to fix it. (The home warranty company pays the 3rd party) You only pay a minimal deductible of usually $50-$75, and that's it!
I personally used mine not too long ago and instead of paying a few hundred dollars to have a professional AC/Heat company recharge my central air I only paid a $50
deductible. That is what is a Home Warranty is.


Looking to buy or sell a home in The Greater LA, Orange County or Fullerton, CA area?
We can help. Email or call us for a FREE REAL ESTATE CONSULTATION: (949) 922-0393
http://www.robcastrobroker.com/

Rob Castro
Real Estate Broker
Direct Phone: (949) 922-0393
Office Fax: (714) 644-8080
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