I just returned from California where my daughter, Shanna, and her husband, Andrew, recently bought a new house and moved in. One of the things I insisted they consider was a home warranty for their 20 year old home there. It's nice to know that you can avoid some of those expensive repairs in that first year of coverage.
Two nights ago I received a call indicating that they had water coming out of a pipe connected to the air conditioning. What to do? Call the warranty company! Yesterday my daughter called to tell me that the repairman had been out and that some things had been improperly installed and would need replacing. Their financial exposure was $60 which represents the deductible on a service call! Think they're happy about having a warranty?
I also negotiated a home warranty when writing an offer recently for some relocating buyers to our area. I negotiated to have the sellers pay for a one year home warranty and the buyers opted to add a rider to cover the water softener at a cost of $40. Two days after closing it was discovered that the softener didn't work and needed to be replaced. Again, a cost of $60 to the buyers! Then shortly thereafter the air conditioning unit ceased to work....again a cost of $60!
The Coldwell Banker home warranty is one of the best in the industry and covers many things normally not covered by home warranty policies. I always try to negotiate that the seller pay for a warranty on behalf of the buyers that I represent. Not only do the buyers benefit if there is a covered problem but I sleep better at night too!