Home protection plans (warranties) are on the rise. They offer homeowners some protection against unexpected and costly repair and service bills, usually during the first year of ownership of their home. They are also usually renewable on an annual basis.
Typically, the plans cover the property’s operating systems (electrical, plumbing, heating, A/C) and some appliances. Of course, it is important to review the plans for exclusions. The coverage is paid by one up-front fee, plus a service fee for each contractor visit.
This protection can make a home more saleable. The fee is usually paid by the home seller, but can be paid by the buyer. Sellers can have coverage while their home is listed. A listed home that offers a year of coverage has added appeal to buyers.
The plans range from approximately $350 to $550 for single family homes. Each in-home service fee is in the $60 range. There are different plans to meet the varying needs of different types of properties.
Be sure to retain all maintenance reports and receipts.
Please contact me at [email protected] for more information on Home Protection Plans for buyers and sellers.
Thanks to Brenda Williams and City Bank Texas for sharing this information.