Denver Home Warranties

In most cases purchasing a home represents the largest single investment a person will make which is why home warranty popularity is on the rise. Getting a home warranty when purchasing a home will give the new home owner peace of mind and potential savings during the first year of ownership.

When considering a home warranty during the home purchase process it is vital that you understand the coverage and any potential limitations of the policy.

What is a home warranty?

A home warranty is not the same thing as home owners insurance. A home warranty is closer to a service contract on the major systems or appliances within your home and home insurance is for losses incurred from catastrophic events such as storm damage or fire. Over the past decade the homes protected by home warranties has increased from 9 percent to 20 percent ad policies average two claims per year.

What does a home warranty cover?

The standard home warranty coverage will usually include electrical, heating and plumbing systems and some appliances such as disposal, oven and dishwasher. Additional premiums are charged for well pumps, A/C, solar systems and limited roof coverage.

It is very important to read the actual policy to completely understand what is and is not covered.

Metro Denver home seller benefits

The seller looks at a home warranty as an insurance policy against mechanical failures in the home for the first year post sale allowing them to leave their closing with substantially less liability issues. Many home warranty companies will also extend the coverage of the policy to include the listing period which can assist with covered items discovered during inspections.

Metro Denver home buyer benefits

There is no doubt that the Denver home buyer is the one who receives the greatest reward with home warranties. The Denver home buyer is the one that is assured that should there be a problem covered by the home warranty during the first year of ownership it will be fixed with minimal costs to the home buyer. The costs of the service call vary from policy to policy.

Another benefit is if there is a problem a home warranty saves the home buyer the hassle of shopping for a reputable vendor to make the repairs. No matter the issue the home owner makes only one call to the warranty company who then arranges the service call.

Metro Denver Realtor benefits

Yes there are home warranty benefits even for the Realtors involved in the transaction. A home that offers a home warranty with the purchase will typically sell faster than one which does not. Additionally it is a great way to limit liability after the closing should a covered item fail.

Home warranty costs

The cost of a home warranty will vary from state to state, type and size of property. A warranty on a single family home in the metro Denver area of average size will run in the range of $350 to $400 at the time of writing this. The cost of a service visit under the warranty will range from $35 to $100.

How a Denver home warranty works

If the home owner has an issue with a covered item all they need to do is call the service number for the home warranty and a vendor will be sent to fix the problem. The home owner is limited to paying only for the service fee no matter the cost of the service.