Home Warranty
There are many different vendures of Home Warranty Companies and all of which offer something different. Having a good Home Warranty will be the key to saving money in the long run of home ownership.
It has been my experience that you should read ALL the printed material of any Home Warranty company you are considering on using to cover your new home. Whether you are buying a Resale property or a brand new home, getting a good home inspection is the best money you could ever spend on a home purchase. I have seen many cases in which the brand new home was worse off in needed repairs and things that were not built properly, than any resale home I've come acrossed.
I currently use a Home Warranty to cover my rental property and it has proved to the best money I've ever spent on a rental. Case in point... I had a sump pump go out before I purchase the Home Warranty and the repair cost me $756.00, in the month of December! Ouch ! Had I had the Home Warranty in place I would have only paid the $55.00 trip charge. I will say that some repairs are outside the scope of a home warranty, like sewer lines that can not be properly cleaned out and become clogged. In my case, the sewer line was about 200 feet long and most Sewer line Snack clean outs can only reach about 150 feet. We had to dig up the line in the center and install a sewer trap clean out junction. This was not covered and yes, it did cost me a bundle.
According to Consumer Reports, most household appliances should be replaced if they're older than seven years or if the repair cost is at least half the price of a new unit. Here are samples of how long appliances and systems in a home should last.
| Life spans for home systems and appliances | |||
|---|---|---|---|
|
Item |
Expected life (years) |
Item |
Expected life (years) |
|
Central A/C |
15+ |
Dryers |
14 |
|
Window A/C |
10 |
Disposal |
10 |
|
A/C compressor |
15 |
Freezers |
16 |
|
Electric water heater |
14 |
Microwave ovens |
11 |
|
Gas water heater |
11 to 13 |
Electric ranges |
17 |
|
Forced-air furnace |
15 |
Gas ranges |
19 |
|
Gas or oil furnace |
18 |
Gas ovens |
14 |
|
Trash compactors |
10 |
Refrigerators |
17 |
|
Dishwashers |
10 |
Clothes washers |
13 |
|
Exhaust fans |
20 |
||
The list above is only a guide for you to determine what the best route for you and what repairs or replacements need to be made, based on age.
Here are just a few Home Warranty Companies, but there are many more to choose from.
1) Blue Ribbon Home Warranty- 1.800.571.0475
2) First American Home Buyers Protection Corp. 1.800.444.6030
3) 2-10 Home Buyer Warranty - www.2-10.com
Home warranties are no substitute for an emergency savings or home maintenance fund. Most homeowners should plan on saving 1% of their home's value each year to cover maintenance and repairs, according to Eric Tyson, co-author of "Home Buying for Dummies."