Home Warranties are part of Minnesota purchase agreements... will there be one or not? and if so, who is going to pay for it, buyer or seller?
Wondering whether it makes sense to include a one-year home warranty as part of your home purchase or sale? Think of it as an insurance policy for the mechanicals and appliances in your home. If you have a problem with a covered item you contact the warranty company and they contact a contractor for repair/replacement. Your cost is a standard deductible service fee.
According to HMS Home Warranty the top 5 unit failures in 2011 were...
- AC system
- Heating system
- Furnace
- Dishwasher
- Refrigerator
Cost and coverage varies by company and coverage. As an example, a basic one-year HMS Home Warranty costs $425 in the Twin Cities with a $100 deductible.
Most HMS Home Warranties cover the following appliances and systems:
- Air Conditioning
- Heating System
- Electrical System
- Plumbing System
- Refrigerator
- Oven/Range
- Built-in Dishwasher
- Built-in Microwave
- Garbage Disposal
- Built-in Trash Compactor
- Clothes Washer
- Clothes Dryer
- Water Heater
- Ceiling Fans
Pre-existing conditions, lack of maintenance and improperly installed items are not covered, so a thorough home inspection is essential.
Sharlene Hensrud, RE/MAX Results Realtor - Email - Minneapolis-St. Paul Realtor
