Home buyer in Barrie ON may find this article useful when considering their home warranty program.

As you get ready to finalize the process of buying your home, the last thing on your agenda will be the option of buying a home warranty. The purpose of these warranties is to repair and replace covered items in your home that malfunction. If you think your home could use the protection of a warranty, make sure you apply for one before the close of escrow.

Home warranties are set up to service and replace covered mechanical equipment and built-ins and home appliances in your house like plumbing, electrical systems, and the gas furnace. If you’re willing to pay extra, you can add supplemental coverage for the air conditioner, hot tub, swimming pool, and roof. If you experience problems with any of these items, you can contact the insurance company to come out and inspect the problem. If the warranty company approves your repair, most likely you’ll be asked to pay a flat fee to cover parts and labor which can vary between $60.00 to $100.

Sad to say, you could devote an entire evening and more pouring over the numerous consumer complaints filed against home warranty companies. Homeowners are shocked to discover the pre-existing condition clause in most warranties exclude coverage on pre-existing problems. If you are considering a policy that excludes pre-existing conditions, be aware you’ll only receive coverage for new problems.

Additional exclusions can include repairs as a result of improper maintenance or servicing, incorrect installations, and areas with restricted access to inspection. Some policies won’t cover a repair unless you pay out of pocket to upgrade the system to current building code. Be aware most policies exclude repairs not caused by normal wear and tear.

Most home warranties cost between $300 to $1000 per year depending on the square footage and type of coverage you buy. You’ll find many sellers willing to cover the first year’s premium so you can feel confident purchasing their home. Your agent may even be willing to throw in the first year’s coverage as part of his or her service.

But if you have to cover the full cost of the home warranty policy, you’re probably smarter if you invest money each month towards an annual repair fund to cover unplanned repair problems. You should aim for a goal of $5000 each year to cover future repairs.

While there may be many homeowners dissatisfied with their policies, you will find some policyholders happy with their warranty. If you happen to get a repair person who is understanding and gets your repair approved, you’ll benefit from having a policy. Make sure you study each warranty thoroughly and check out the exclusion clauses.

Check your state for any government agency which oversees home warranties. See if the company has a record of complaints on File.

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