Home service contracts have always been a good way for sellers to entice buyers who may need a little more incentive to move forward while negotiating a sale. It's fairly common for a home to be advertised for sale with a Home Warranty included. Home warranty services contracts typically covers repairs to appliances, air conditioning, and heating units, and water heaters. As simple as that may sound, all service contracts are not the same and the cost can vary according to the age of the home and items covered. You should weigh the costs and check what the policy allows before deciding on one.
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Service contracts normally range in price from $250 to $500 per year. Here are some things to consider before buying:
– Check customer reviews of the company and the contract at homewarranty.com
– Check the coverage and any exclusions it may have. Will the allowance cover the cost of a replacement if needed. Most offer a depreciated replacement value. If the appliance is 10 years old the actual replacement cost may exceed the allowance. Look for a full replacement value.
– Verify what is and is not included. Are all appliances included?
– Are there extra add-on services that may be worthwhile? Some have extended plumbing and electrical coverages.
– Are there any added service call fees that you should know about.
Service contracts are always loaded with exclusions and exceptions. Being aware of the exclusions can make a great deal of difference in deciding on one over another.