We purchased our current home a little over a year ago and one of the perks to entice potential buyers was an included third party home warranty purchased by the seller. I have to admit, when buying an older home, it sure does ease your concerns about the home falling apart right after you close.

A home warranty plan is simply insurance you can buy against sudden and accidental breakdown. Typical coverage is for the mechanical systems of your home such as electrical, plumbing, furnace, and hot water heater. Our plan included a few extras such as our appliances, central air, pool pump and filter. Our plan would cover the cost of repair or replacement minus a seventy five dollar fee which is paid at the time of repair. Structural repairs such as our roof were not covered. Companies and plans vary so do your homework if you’re considering buying a plan for your home.

Home protection plans are not replacements for home owner’s insurance, it’s just an extra piece of mind. Don’t skip having the home you are planning to buy inspected because it includes such a policy. Always hire a licensed professional inspector to look the place over.

So, are they worth the money? In my personal example, even if I had purchased the plan with my own money I would have came out far ahead financially. In fact, we renewed our policy at my expense without hesitation. Shorty after we moved in we lost electricity in two rooms. Our bathtub in the second bathroom started leaking behind the wall. We purchased the home in the winter and in late spring when we opened the pool we discovered the sand filtration system was shot. Those three items combined cost me $225 ($75 x 3 occurrences). Our home warranty plan paid over $3000 for the repairs and a new pool filter.

As you can see, we saved in that situation. I renewed the plan for another year because the alternative would be to use a credit card when something major breaks and that’s not a plan at all. Ideally you would have an emergency fund building interest somewhere but until you have that established a home warranty might just be the answer. We even added the washer and dryer to this year’s plan.

Tip: Even though we knew we would renew, we made them work at selling it. We ended up with a free upgrade with a lowered initial repair fee of $40 rather than the $75.

The bottom line is how much risk you’re willing to take. You can save $250 to $500 a year by skipping the home warranty if you’re a gambler. It is a large expense, especially if you believe the risks are low due to the condition of your home. How do I see it? If my 20 year old furnace or my 50 gallon hot water heater goes out, I’m going to be very happy to write that $40 check to have it repaired or replaced. If nothing at all happens I’m still ahead and I didn’t have to worry about it for a year. If my home were newer and everything was under five years old, I’d probably take the $500 and get that emergency fund started.

As fall approaches, it’s time to start thinking about a top-to-bottom inspection to check for any damage and to prepare for the upcoming cold winter months.

Bite-sized projects

When it comes to staying one step ahead of maintenance headaches, we have to admit, our preference would be to bury our heads in the sand and hope that someone else takes care of any problems. Fortunately, we learned a trick that helps us overcome that mental block. If we break a big task down into smaller tasks, and then put one task on our to-do list each week, we will surprise ourselves by tackling something we didn’t think was possible.

For example, Sarah recently moved into a new house and there were about 50 little maintenance issues, such as a knob that had fallen off the dresser drawer and a leaky faucet that was keeping her up at night, which she knew she had to deal with. So she broke it down. Week one, she created a checklist. Week two, she went to the hardware store for all the supplies she’d need to fix the broken things. Week three, she fixed the broken knob. And so on. When you’re feeling overwhelmed, break the project down into smaller bite-sized steps, and you’ll be off to the races in no time.

Getting help

If you keep putting off maintenance tasks because you’re too busy, reach out to others who can help you. I am happy to admit that I am out of my depth in many areas of home maintenance. Why? Because that means my job as a homeowner is really about finding the right people to help me for the right price.

Here are three essential chores to tackle this week to get your home ready for the transition to fall.

No. 1. Change esssential batteries

Don’t wait until your smoke and carbon-monoxide detectors chirp at you to be changed, since that usually happens when you’re busy doing something else (like sleeping). Buy a few extra batteries when you’re at the grocery store this week and swap out the old batteries for new ones in all of your detectors.

No. 2. Change the filters

As much as half of the energy used in your home goes to heating and cooling. A dirty filter will slow down air flow and make the system work harder to keep you warm or cool — thus wasting energy. A clean filter will also prevent dust and dirt from building up in the system, leading to expensive maintenance and/or early system failure. If it’s been more than three months, buy some new filters and put them in your heating and cooling systems this week.

No. 3. Sweep the chimney

Chimneys need periodic examination and thorough cleaning to maintain efficiency and to reduce the chance of a chimney fire. Book an appointment with a chimney sweep to have yours professionally cleaned and checked for loose or missing mortar.

By: Sarah Welch and Alicia Rockmore
Detroit News; September 20, 2008

While fall is often a time when homeowners focus on some indoor home improvements, one of the most important home improvements may be putting on a new roof (see if this is covered under your home warranty ). Sure, a new roof doesn’t have the “wow” factor that a new kitchen or finished basement has, but it is vital in eliminating the potential for serious water damage in your attic. If you have an older home, or even one built in the last 20 years, there is a good chance you need a new roof.

Of course, one of the most common questions I get from callers is, “How do I know if I need a new roof?” If you have any obvious leaks in your attic or ceiling, that’s a sure sign that you need a new roof. Even if you don’t have a problem with leaks, it doesn’t mean your roof is fine. To determine if your roof is in need of repair or replacing, take a pair of binoculars and inspect your roof shingles. If they are cracked, discolored or curling, you should call a full-service roofing contractor to get it inspected.

Once you determine that you need a new roof, you should learn all you can about roofing and roofing products. For example, in the past, many homeowners that had one layer of shingles on their roof would elect to have the roof “re-covered.” That’s where the contractor would put a new layer of shingles over the old ones. While that is certainly cheaper than a complete “tear-off” of the old shingles, it is not the best solution to your roofing needs.

ORA Warranty is one company that doesn’t recommend re-covering. According to experts, if you do a re-cover, it means you are assuming the wood underneath and the original shingles are in good shape. However, you can’t really know that unless you tear off the old shingles and inspect the wood. If that wood is rotting or in need of repair, your roof could still leak even after a re-cover.

Home warranty and construction experts also say that re-covering a roof doesn’t enable a roofer to address other important areas of the roof’s integrity, such as flashing walls and areas around chimneys or stack-vent pipes.

When it comes to roofs, you get what you pay for. Therefore, saving some money by doing a re-cover could unfortunately lead to paying your deductible on an insurance claim when your ceilings are damaged by water leaks.

Cost of shingles

You also get what you pay for in terms of roofing products.

While most contractors may be similar in pricing for installation of a new roof, the bigger cost differences are in the type of shingle you choose. There are two categories where the cost for a shingle can vary dramatically. One is the style of the shingle, while the other is the shingle warranty.

In the past, most shingles were the flat, three-tab variety, and only came in a few basic colors, such as black, gray or brown. Fortunately, today’s homeowners can choose from a variety of architecturally designed shingles in a several colors that complement the look and color scheme of your home.

So, today’s shingles can actually bring better curb appeal.

Of course, these architectural shingles are more expensive than the flat, three-tab version, but there are various price points for you to choose from to help you stay within your budget.
Warranty

The other important price factor when considering roofing shingles is the warranty. Obviously, a shingle that is warranted for 50 years is going to cost more than one warranted for 25 years. But it also will be better then the 25-year warranted shingle, so it will last longer.

When it comes to warranties, you need to know what the warranty covers before you can decide whether it’s worth the investment. The best warranty is one that has a “No Dollar Limit.” Which means that no matter how bad the problem or the cost, the shingle manufacturer will take care of the problem.

If you are planning to get a new roof, it’s important to familiarize yourself with the common terms used in the roofing industry to help you make an educated decision when choosing a contractor and roofing materials. See the accompanying story for some of the most common terms used in the roofing business.

Once you have settled on the type of roof shingles you want, make sure you have enough roof and soffit ventilation to improve the shingle’s life. With the proper amount of insulation on your attic floor, your attic temperature is closer to the outdoor air temperature, which eliminates the potential to “cook” the underside of the shingles. Most roofing contractors will recommend and install the proper ventilation system for your roof.

Since your home is most likely one of your biggest investments, unexpected repair or replacement costs can easily strain your budget if you do not have a warranty.  Additionally, finding an approved and insured contractor to solve your problem can be stressful and inconvenient, especially at that crucial moment when a system breaks down.  While a home warranty cannot prevent systems or appliances from breaking down, it can help make covered repairs or replacement easier and less costly.

While not everything is covered, coverage for many of the most frequently occurring breakdowns of home system components and appliances is actually included.  Applicants should review their contracts or sample contracts carefully, to confirm covered items, terms and conditions, limitations and exclusions.  In some cases “supplemental” home warranty coverage may also be necessary, for items such as swimming pools and their filter / pump systems, garage door openers, secondary appliances (i.e. a deep freezer that is not the primary appliance), etc.

Whenever you apply for a mortgage loan, most lenders require that you have proof of insurance on your home before they will allow the closing to take place.  Very often, what homeowners feel is covered by their home owners insurance policy, is not included in their policy.  A home warranty can be very useful in this respect.  Carefully reviewing your homeowners insurance policy and comparing it to a home warranty, and then adjusting each to be complimentary to the other, can give a homeowner REAL peace of mind knowing that they are in fact fully covered for any event that may come their way.

If you have a seller’s home warranty (a type of home warranty provided by the seller to help promote the sale of the property), once the sale closes, any problems that may occur in the home will be covered.  Any expensive repair the home may require, will be taken care of by the home warranty.  A homeowners insurance policy will not likely cover many kinds of problems which will occur from time to time, nor will it cover wear and tear on home systems.

Unless you’re carpenter or contractor by trade, a home warranty is a great investment.  In most cases you will recover your modest investment in the home warranty plan via replacement of home systems and appliances, which will all eventually fail and need to be repaired or replaced.  The best advice is to check around and compare home warranty coverage and rates.  Both quarterly and monthly payment plans for are available, and the internet is a great resource to begin your home warranty search.

Troubleshooter: Long hot summer

WTDV Raleigh Durahm

FAYETTEVILLE (WTVD) — Recently it was 80 degrees inside Lisa Williams’ home, and she considers that a cool temperature.

She says she’s been without a working home air conditioner unit since spring. She tells Troubleshooter Diane Wilson, “I was awful. I was miserable.”

She has a home warranty through American Home Shield and she says a technician was sent out to look at the unit. She adds, “They started taking the unit out and then stopped as they said they didn’t have approval to do the work.”

So Lisa waited for American Home Shield to approve the work. But Lisa says AHS didn’t approve the work instead she says, “They said they would not pay for everything. They would have to send me a check. I would have to take the cash out option which left me with nothing, as the unit is halfway pulled out, and no air no heat, no nothing.”

Lisa used ceiling fans and window units to keep cool. She also says she heard nothing from American Home Shield. She adds, “I kept calling in and said if you’re going to send me cash how much? When are you going to send it and they never even called me back.” So Lisa turned to Troubleshooter Diane Wilson.

Troubleshooter Diane Wilson got in touch with AHS and Lisa got some cool news. She says, “AHS contacted me immediately and they said they would pay for everything.” Lisa is sitting cool now as she has a whole new working unit and she’s very happy with the response from AHS.

In a statement a rep for American Home Shield added this: American Home Shield is committed to providing quality customer service. Ms. Williams’ recent experience was not representative of the normal AHS customer experience and we sincerely regret the delays in service she experienced.

As a result, AHS covered 100% of the expense related to the replacement and installation of her new furnace and evaporative coil, including $1,200 toward items that would not normally have been covered under the terms of her warranty.

The company also reimbursed Ms. Williams for her trade service fee and AC window units, used to cool the home in the interim. Ms. Williams has confirmed that she is pleased with the outcome.

As part of the company’s business model, AHS contracts with local trade professionals to handle our customers’ service requests. AHS prides itself in providing reliable service from pre-screened, insured contractors…..(more)