• Occasionally, homeowners hoping to close a deal agree to purchase home warranties to give the home buyer peace of mind.  However, prospective homeowners should do their homework to make sure the policies will actually help.

  • Typical home warranties cover the major mechanicals and appliances in a home for one year after the sale.  Warranties range in price from $350 to $800.  If purchased from reputable companies, home warranties can help homeowners deal with broken appliances, malfunctioning air conditioning, and other problems.

  • The policies usually require homeowners to contact the service company when something breaks.  The company then sends out a repair person who provides an evaluation for a set fee, usually about $65.  Once a professional has determined what the problem is, the warranty company pays for the broken items to be repaired or replaced.

Taken from the weekly CAR newsletter.