Hi. I am a home warranty from Cross Country Home Services. And I’m Home Insurance. I cover your personal belongings and your entire house in case of burglary or natural disaster. That’s all well and good but what happens when your AC breaks down, not due to a terrible event, but just because major appliances have wear and tear? I don’t know. That’s where I come in. A home warranty can help with the costs of repair and replacements of your systems and appliances that you have in the home. You mean like heating and cooling systems, water heaters and refrigerators? Yeah, and dishwashers and ranges and washers and dryers, microwave ovens and much more. Gee, you cover a lot, but what about plumbing and electrical systems? Yeah, I cover that too. If you have a home warranty, you have peace of mind. As a home warranty holder, if a system of appliance breaks down, you don’t have to pay the full price. Just a small deductible. Wow, you really are important. I think so, but you’re important too. We both make sure that home owners don’t have to panic with the unexpected and high costs of maintaining their homes. It’s almost like we go together. That’s right! Like peanut butter and jelly or cookies and milk. Or salt and pepper or fish and chips or cheese and crackers or peas and carrots. You know what? I think they get the point. For more information about Cross Country’s Home Warranties, go to CCHS.com.

Buying a new home warranty is much like buying an extended warranty on your refrigerator or car — there are a lot of questions to be asked.

Many states have different laws regarding  warranties. For example, in California, state law allows you to sue builders for general defects for up to four years after the home is completed. You can also hold the builder liable for latent defects on major components for ten years. Why would you need the coverage if the law says the builder must pay?

We are starting to see many products being offered on existing homes, and you should be cautious with these.

Start by checking with your state’s Department of Insurance. The department regulates the industry, and they will be able to tell you whether or not a particular company is in compliance with the state regulations.

Many advisers suggest that you should waste your money on warranties for resale homes. These typically include standard coverage for the home’s heating, electrical and plumbing systems. Your kitchen appliances are often part of the standard coverage, and you can often add your air conditioner, pool, well pumps, solar components and root coverage for a small additional cost.

You will often find that sellers offer the warranties, but be aware – this is by no means an acceptable substitute for a professional home inspection. If the seller pays for the insurance, then fine. But if you are asked to, you should weigh your options carefully.  Not only will you spend a couple of hundred of dollars for the plan, you will also pay a deductible every time someone comes out to look at a problem.

Most plans limit how much they pay to correct problems, therefore you are best protected by having a professional property inspector evaluate the home thoroughly, and uncover the problems for you from the beginning -  The inspection is a better usage of your money.

Plans are popular, and eighty percent of existing home sales include a home warranty in California. If you are thinking about taking out a warranty on your new purchase, you should ask your friends and family for referrals. You are looking for a company with a good track record of happy customers.

Make sure you shop around. Look at price, service fees, coverage and company stability. Make sure you look at all of the costs that you will have to pay and the coverage amounts. Be certain that the coverage is applicable to your home. You don’t want the policy to be voided because your home is too old.

If you want to purchase warranty insurance, then go ahead. Some people do benefit from the coverage. Like all insurance, the company is betting that you won’t ever make a claim. If you don’t, you’ve lost your money.

Homeowners insurance covers personal belongings and the entire house in case fire, theft, or natural disasters such as lightning, a tree falling, heavy snow damaging a roof etc.  A homeowners insurance policy does not cover regular maintenance and replacement costs of appliances and most home systems, which is where home warranty coverage picks up.  A home warranty is a type of wear and tear insurance against equipment and appliances such as heater, A.C. unit, plumbing and electrical systems.

What does homeowners insurance cover?

• Personal property, furniture, clothing, jewelry etc.
• Structure and contents of the home
• In most cases your living expenses if the home is not in a living condition due to natural disasters
• Appliances are covered as well, but only in the event of natural hazard or special circumstances.
• If someone visiting your house gets injured while in your property (such as a slip and fall) and if you are sued, you are covered by homeowners insurance.
• Homeowners insurance protects you from fire, lightning, tree-falls, burglary, storms, etc.

What does a warranty cover?

• Like homeowners insurance, a home warranty can be adjusted or customized to suit the homeowner.  In most cases, basic coverage includes the repair and replacement of all major appliances such as Heating/Cooling systems, Water Heaters, refrigerators, Dishwashers, Ranges, Ovens, washer/dryers etc.  Plumbing and electrical system are also included in most basic coverage plans.
• Optional coverage varies.  Many companies also cover roof maintenance in the basic coverage, but some companies charge extra.
• Coverage is generally effective 30 days from the date of buying the policy. But be aware that claims can be denied by companies for various reasons, including what they consider “maintenance negligence”.

Normally whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home. Often times what you think you are covered for, is not included in your policy, and things like electrical problems, heating and mold infestation are not covered. This can be stressful and these kinds of additional expenses will certainly not be welcome.

If you have a seller’s home warranty, once the deal is closed, any problems that may occur in the home will now be covered. So any expensive repair you may have to do, or pipes you have to fix will be taken care of by the warranty. Your home insurance will not likely cover these kinds of problems that will occur from time to time.

Your seller’s home warranty also covers, whatever the cost is to repair any damage in the new home, once the deal is done. Things like failures in the electricity, plumbing, air conditioning, and heating will be paid for by the home warranty. Be aware though, that unless these failures occurred on their own, the seller’s home warranty will not pay for the repairs. If you commit a code violation, or are found wanting in terms of how you care for the affected system and any maintenance, you cannot be denied coverage.

If you decide to get a home warranty, be extra vigilant in reading and comprehending the stated terms and conditions on the contract agreement. You will be unable to dispute or challenge the policy once you have signed the contract and made payment. The term of a home warranty is usually one year, so you will have coverage for that period of time. So if you should decide to sell your home, you should let the buyer know when the home warranty will need to be renewed, and leave it up to them to decide whether or not they want to extend it.

In the final closing costs of your mortgage, you may also include your seller’s home warranty. You also have the option of buying home warranty and deferring paying until the deal is closed. Just as you would do, to get a number of home insurance quotes, the same applies when seeking a home warranty. Seek as many quotes as you desire and make your decision accordingly.

The first step is to decide if you need one.  You should get a detailed home inspection report on your existing house from a third party inspector.  This report will help you understand the potential and existing problems with your appliances, and will also help you decide if you need a warranty.  If some appliances are aging and need special attention, be sure to check if the warranty company provides sufficient coverage for those appliances in particular.

Check with your friends and colleagues as to which providers do they use, and how their experiences rate them.  Be sure to ask about their satisfaction levels with service and claims processing. The may some comments about customer service, contractor turnaround, quality of work etc.

It is important to choose a company that has a decent track record, as many consumers are dissatisfied with the services offered by many home warranty companies and it is indeed difficult to deal with some companies when it comes to claims processing.  It is not easy to find a perfect home warranty company, but you can always chose a company with least number of complaints.  There are several ways to research.

1. Check with several companies via internet.  You can often receive a free quote from an online company with no obligation.
2. Check the company’s track record using trade organizations such as Better Business Bureau
3. Research the company over the Internet for any negative reviews.  Insurance discussion boards list complaints against many home warranty companies.
4. Your real estate agent or broker will also be able to provide the name of few reliable warranty companies in the area.

Next, determine if you need additional coverage.  The coverage can vary from plan to plan with regard to duplicate sets of equipment (second refrigerators) or items such as pools ad spas.

Now, start calling the companies and make notes of their offerings. Be sure to collect information such as -

• Annual premium

• The deductible per incident (including any service call fees)

• Average turnaround time for repairs

• Additional costs for any extra coverage, if necessary.

• If you have any aging equipment reported in your Home Inspection report, be sure to confirm that the warranty company provides adequate coverage.

• Determine the period of time before the police will be in force (especially if you need immediate coverage)

• Ask for clarifications and contractual obligations.  Take note of how you are treated, which can be a good indicator of how the company treats its customers after the sale.

Lastly, glance over the contract terms when you are ready to buy the coverage.

Now you have completed your due diligence.  Hopefully you have gained knowledge about home warranty coverage in this process. Having a better idea about your coverage will help you when you are dealing with the conflicts with home warranty companies.

What is a ‘Home Warranty?’ A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies. Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.

Is this too good to be true? Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. “Yep” he says “Your A/C equipment is shot, you’re going need a new one.” “Good thing I have this warranty” you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it “serviced” each year or because the service tech says the reason it went out was because of a “Pre-existing” condition.

I’ve seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that’s money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of “we won’t warranty it ‘if’s’.” The Technician who comes to your home may be the one who’ll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.

Here are a few reasons I’ve seen Home Warranty Companies deny claims · Lack of regular maintenance · Pre-Existing conditions · Questionable ‘Code’ issues · Components not installed per the manufacturers installation instructions

The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.

You also want to make sure what the Home Warranty will cover and what it doesn’t. I’ve never seen a policy with blanket coverage so don’t assume it will ‘cover everything in the home’ like some real estate agents tell you. Read the fine print!

What are my options if my warranty company denies my claim?

I’m betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG’s office of your state if you’ve had a denial of a claim in which you feel is legitimate.

Good Luck and read the fine print on those contracts!

In short, a seller’s warranty provides added assurance that any repairs to major appliances, plumbing, and other home systems will be covered by the seller within a specified time period after the home is purchased, excluding a typical deductible of $50-60. Seller’s warranties are always offered by builders of new homes, but they’re becoming increasingly popular as sales tools for older homes, as well. For the seller, the cost is about $300-400, but it can be well worthwhile, especially if it means a quicker sale of their home.

There are some real estate companies that offer seller’s warranties at no cost to their sellers during the home’s listing period, such as Home Warranty of America, but the most agencies require their sellers to pay for the warranty if it’s something they’d like to offer potential buyers–with the cost often built into the sales price.

Home Buyer’s Warranty
A similar home warranty can be purchased by buyers, as well. The typical $300-400 cost is similar to what a seller would pay for similar coverage, and a buyer’s warranty covers the same things as a seller’s warranty. The main difference is that a buyer’s warranty typically begins on the date of closing and continues for a one-year period after that. Another difference: the buyer’s warranty can be renewed annually.

Besides Home Warranty of America, there are a number of other companies that offer home warranties for sellers and buyers. Those companies include: 2-10 Warranty, American Millennium (which offers a policy to specifically cover hidden structural or pest damage to a home), and Home Warranty Plans, but you’ll probably find others if you do an Internet search or check with your local real estate broker.

As is the case with any consumer product or service, it’s always wise to do some research before you decide whether a seller’s or buyer’s warranty is something you want to consider. Then, if you’ve decided that such a warranty is worthwhile in your particular situation, make sure to compare the various programs to see which ones are available in your area, what they specifically cover, their overall cost, the amount of their deductible, anything that might be excluded from the program, and any other variables before you commit. Remember, you can offer the warranty, but if you consider an offer less than full price, you can ask the buyers to provide their own warranty.

Providing this service adds to your home’s overall appeal to home shoppers. A home warranty gives your home buyers the peace of mind they seek.

Paint a room: Do any of your rooms look drab and worn, with walls and woodwork full of scuffed or fading paint? Or perhaps your wall color is dated and could benefit from a hip new palette. Maybe you have antiquated and stained wallpaper that needs to come down. Take a critical look at the color and condition of your walls, then consider jazzing them up a bit with new paint or wallpaper.

Replace pillows: Are the accent pillows on your sofas or beds starting to look a bit tattered? Are they out of style, reminiscent of a look long gone? If so, it’s time to get new ones. Check out your favorite home-interior stores to see what’s new.

Freshen wood furnishings: In the hustle and bustle of daily life, wood furnishings get dented and dinged. Now is the time to get a stain stick and touch up all your wood pieces, covering up those boo-boos that make them look older than their years.

Do some deep cleaning: There’s nothing like a thorough deep cleaning to make your home look newer. Put on your grubby clothes, turn on some great tunes and get to work. Scrub your walls and woodwork, polish your silver, scour the grout in your kitchen and bathroom, and wash windows.

Weed out artificial plants: While I love faux greens, they are dust magnets. After a few years, they get filthy and faded. So do some interior weeding, tossing the fakes you’ve had on display for years. When you replace them, you’re going to be so blown away by how much better today’s faux greens are that you’ll wish you’d rooted out the old plants earlier.

Edit accessories: Today’s trend in interior design is for a lighter and leaner use of accents, using fewer pieces to make a bold statement. As you evaluate your displays, remove pieces you aren’t crazy about and find new ways to showcase the select items you are crazy about.

Replace fixtures. Take a long, hard look at your light fixtures, faucets and the hardware on your cabinets. Do you still love them as much as you did when you moved in? If not, it’s time to replace them with today’s new styles

Open yourself to new window treatments: Window coverings take a beating from sun and dust. And when they get dated, they age the look of your entire home. Sometimes simply hanging new curtains will dramatically update the look of a room. I’m in the process of doing just that in my kitchen. The window valance above my sink has gone limp, so this fall I’m going to replace it. I’m having as much fun thinking through my window-treatment options as I will looking at my new coverings once they are up.

Other things to consider:

- Do you have a home warranty?

- Is the house on a septic system?

- Does the home feature a custom bathroom design?

- Does the master bathroom feature a custom shower enclosure?

- Are you working with a home buyers agent?

The single most important step that any Raleigh home buyer can take is to contact get a home waranty from ORA Warranty. ORA Waranty is a leading Home Warranty Dealer and will work hard to ensure your home warranty is exactly what you are looking for.

They’re a couple in their early 30s — a computer technician married to a bank teller. They have stable jobs, a down payment in the bank and an intense desire to escape their Charlotte condo for a luxury home in Raleigh North Carolina.

In fact, the couple has picked out their ideal property — a sprawling ranch-style house on a full acre. Plus they’re convinced this is an opportune time to buy.

Still, the couple is racked with doubts and have yet to make a serious bid on the property. Are they crazy to consider buying in so tumultuous a real estate market? Their parents think so and call them often to urge that they hold off.

This couple’s situation illustrates the pervasive confusion affecting prospective homebuyers at a time of economic uncertainty, says a real estate broker, who is also the author of “A Survival Guide to Buying a Home.”

One manifestation of buyer ambivalence is a common phenomenon: the withdrawn bid.

“People search around and around for the perfect house at a bargain price. When they find it, they’re super excited and run to their agent’s office to write an offer. But an hour later they tell the agent to tear up their bid,” the broker says.

Of course, buyer ambivalence is understandable — given the economic situation in the country. Turbulence on Wall Street, along with high gas and food prices and job jitters are combining to cause insomnia for many once-confident members of the middle class.

“It’s difficult to get a handle on home values now — or to accurately project what real estate will be worth in the future,” the real estate broker says. Even so, he insists that those who get a rock-bottom price on a home in a desirable community will one day be glad they acted now rather than waiting.

Here are pointers for those now contemplating a home purchase:

• Clarify your reasons for making a purchase.

Fear is a powerful force that can restrain people from going forward — even when they believe it’s in their interest to do so. But those convinced that now is a good time to realize a long-held housing dream shouldn’t let ungrounded fears inhibit them, says another real estate broker and former president of the National Association of Exclusive Buyer Agents.

“The main thing is to go into a purchase with your eyes wide open, plus every piece of solid information you can obtain,” the other broker says.

Keep in mind, though, that there could be reasons why it might be imprudent for you to buy now, including near-term employment prospects or perceived job security.

• Get a strong mortgage lender and RTP home buyers agent on your team to build confidence.

It’s no secret that home lenders now want to be doubly sure any home loan they originate will be solid. This means you’ll need to be unusually well-prepared to answer the lender’s request for documents, the other broker says.

“All your paperwork must be in order. I recommend that even before you go look at homes, you sit down with a Ann Davis and get all of your paperwork in order.”

Also, more lenders are now demanding proof that the funds you’ve amassed for your down payment have been in your savings or checking account for some time. That means you’ll need to produce account statements showing the money is truly your own, which gives you a stronger stake in the home or real estate property you buy.

If you’re self-employed, you can now expect your lender to do a rigorous review of documents related to your business.

But the time you spend documenting your eligibility for the home loan will be worth it if your lender gives you a “pre-approval” letter. This you can use as a bargaining chip when negotiating for the home or real estate property of your choice.

• Take your time choosing a home — within reason.

Many neighborhoods now have an unusually large number of for sale signs. This huge array of choices gives home buyers yet another reason to delay commitment to any one property.

“If this is the right time for your family to buy a house, don’t let the negative atmosphere around real estate discourage you. Use the abundance of choices to help you get precisely what you want,” the other broker says.

Here are some other things to consider when buying a home:

- Do you have a home warranty?

- Is the house on a septic system?

- Does the home feature a custom bathroom design?

- Does the master bathroom feature a custom shower enclosure?