Why A Home Protection Plan (Warranty)
Your home is one of your biggest investments. Unexpected repair or replacement costs can put a strain on your budget, especially with the other expenses associated with moving.
The home protection plan offered by Coldwell Banker (via American Home Shield) provides peace of mind to both the seller and the buyer during the time in which the home is on the market (seller protection) and for at least one year after closing (buyer protection).
The plan offers quick relief from hassles and expenses when covered items break down during the course of the listing or the first year of home ownership.
What is a home protection plan? It is a service contract (not really a warranty, but commonly referred to as that) that covers repair or replacement of many of the most frequently occurring failures of home systems and appliances. A home protection plan pays for repair or replacement of any covered item that breaks down due to normal wear and tear or items that fail due to typical use. The owner at the time of the service call pays a minimal service charge.
When a seller purchases a warranty during the listing period, they:
- are protected in the event that a covered component fails while the home is listed
- are protected in the event that a covered component has failed, and the failure is discovered during the course of a home inspection (for either a buyer or a seller)
- have the peace of mind of knowing that some of the expenses, that could become problems during the course of selling the home, are minimized
When the buyer obtains a warranty they have the peace of mind of knowing that their potential for major home repairs are mitigated during the first year of home ownership, often a time when savings are at a low point.
Warranties are renewable, so buyers have the option of purchasing additional coverage after the first anniversary of their home ownership.
Some of the most common items I’ve seen handled by the Home Protection Plan for my clients have included: Plumbing repairs, electrical repairs, heating system repairs, and appliance repairs.
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