Straight Talk About Real Estate

At the time of purchase, it is customary for the seller to pay for a one-year home warranty plan for the buyer. Sometimes it is called a home protection plan. The basic plan usually runs about $250-$300. You can also add on optional coverages.

Do not think that everything that goes wrong with the house will be covered by the plan. First American Home Protection Plan is a reputable company and explains what a typical plan covers. Whatever is not listed is not covered.

Optional coverage costs extra, such as central air conditioning, pool and spa equipment, and roof.

I suggest not getting the roof coverage. Read the limitations on it. If you have a roof problem, chances are it won’t be covered.

Whenever you call the home warranty company for service, there is a service charge of $35-$50. If the repair person comes out and tells you it is not covered by the plan, you still have to pay the service charge. So I suggest you describe in detail your problem to the warranty company on the phone, and ask if it is covered. If not, you may as well shop for the best repair company, save the $35-$50 service charge, and not be tied to using the one they send.

For major problems not covered by the home warranty plan, call your homeowner’s insurance. Remember your homeowner’s insurance probably have a deductible of $500 or $1000, so it is only worthwhile if the problem cost much more than your deductible. Fortunately, there is no service charge if the insurance sends someone out to look at the problem.