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A home warranty should cover more than a small handful of items in the home. It should cover all major components of the home including the electrical system, and plumbing as well as appliances and pool or spa pumps. [Hotlink and promotion removed by Zillow moderator. Please see our Good Neighbor Policy for information.]
Many of my Buyers and Sellers have found that providing a home warranty is extremely worthwhile. Who pays for it is usually part of the initial contract negotiations.For the Seller's part, providing a Buyer with a home warranty is not only an act of "good will" it is good after-sale liability insurance for any systems/appliance problems, that the Buyer may have during his first year of ownership.For the new homeowner, if there are any repairs/replacements needed of items that are covered under the home warranty, a $65 service charge is all the new owner is obligated to pay. I've had new home buyers that have replaced HVAC systems, dishwashers, water heaters, refrigerators and pool equipment, just for that $65 service call charge.I particularly like the program with Old Repulic Home Warranty, but always check and compare the coverage offered among the different companies.
You are better off putting that money towards paying down a creidt card. Then your $400 is actually worth something. While sometimes warranties pay for themselves most often parts are covered but the most expensive portion of a repair bill labor, is not.
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