HOME WARRANTIES: (Residential Service Contracts)
A home warranty will help to protect you from some problems after the close and should give you confidence that there won’t be major “out of pocket” expenses for the first year after the close – Together, with a home inspection, you will have the best protection from major problems turning up after the sale closes.
When you purchase a home, the seller usually pays for the warranty that covers some things such as the Central Air and Heat, Electrical, Plumbing (including the water heater), and appliances. Home warranties do not cover the roof or foundation so make sure that you get those inspected by a qualified roof inspector. Use reputable companies that have a good reputation and have been in business for several few years. Avoid storm chasers when getting the roof checked. These warranties are usually good for a period of one-year from the purchase of the home and can help reduce repair costs for covered items, during this period. They can be renewed annually and usually cost between $400 and $700, depending on the coverage that you purchase.