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Home Warranties

Home Warranty paperwork

What are they and do you really need one?

A home warranty is not much different from a warranty you might have on your car, your computer or your home entertainment center. A warranty on your home usually covers all of your home’s major mechanical systems, including hot tubs, pools, wells, septic tanks and all of your appliances. Some policies even cover the roof of your home and almost anything else you’d like to include, as long as it’s specified in the policy.

Home warranties are obtainable for most any dwelling, including mobile homes, condominiums, town houses and manufactured homes. Either the buyer or the seller can purchase them; some sellers will include a home warranty policy to make purchasing their home more attractive. Including a home warranty with the sale is an excellent idea, especially if the home is older and the systems and appliances are aging.

Since the policy can be purchased at closing, the seller doesn’t have to come up with the premium out of pocket. Further, the cost of the policy can be split between the buyer and the seller, depending on the terms of the sale.

Home warranty policies are generally effective for one year and are renewable. However, you can expect to pay a little more for coverage each year, as the items covered continue to age. This is reasonable. Policy costs vary according to the list of things covered, but an average cost would be between $350 and $500 per year. Obviously, when obtaining a policy it is important to be specific about coverage. You can expect to pay a small co-payment or deductible when the repair person responds to make a repair. This is an industry standard. Your payment will range from $50 upward.

According to a Gallup poll, 79% of buyers and sellers surveyed rated home warranties as one of the most important aspects of buying a home. These policies are not like hazard insurance, which covers losses due to fires, storms and accidents; home warranties cover normal wear and tear breakdowns.

The Basics of Buying A Home


View more information related to Cedar Rapids, Iowa City as well as the Corridor area.


Skogman Realty can assist you in locating to the Cedar Rapids or Iowa City areas.

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