A home warranty is simply a policy/plan purchased by a buyer or selleras assurance against unexpected home repair costs.  A home warranty offers protection for mechanical systems and some appliances against unexpected repairs not covered by homeowner's insurance.  This coverage is valid for a certain period of time, usually one year.

A home warranty is similar to any other warranty or insurance policy in the fact that you may never need to use it, however; it can be a great benefit to you should you encounter an unexpected problem.

Your home systems and appliances won't last forever.  In fact, the average life expectancy of nine critical systems and appliances is 13 years, and the likelihood of failure in a given year is 68%. (Home Repair and Remodel, Marshall & Swift L.P., 2004)

Homeowners spend an average of $900 each year to repair home systems and appliances. (Consumer Expenditure Survey 2002, U.S. Census)  The cost for just one appliance or systems repair can range from $65 to $2,000, and replacement costs average $1,319. (Home Repair and Remodel, Marshall & Swift L.P., 2004) With a home warranty, you reduce the risk of these high costs.

You can protect yourself against many of these financial risks with a home warranty.  When a covered item breaks down due to normal wear and tear, you call a toll-free number the home warranty company provides to you and they send a pre-screened contractor to your home to solve the problem.  You pay the deductible (service call fee) and that is it!  They will repair or replace the item for you.  Keep in mind that most home warranties do not provide coverage for pre-existing conditions.

There are many companies to choose from and as with any purchase, researching the reputation, options, and coverage provided by a company is recommended.  Shopping around is not a bad idea either.

Prestige Home Warranty by American Home Shield is sponsored by the Illinois Association of REALTORS and provides sensible protection, affordable coverage, and reliable service.  They offer plans starting at $420.00.

Covered items may include:

   Heating System, Heat Pump, Air Conditioning/Cooler, Ductwork, Plumbing System, Plumbing Fixtures, Stoppages, Electrical System, Water Heater, Range/Oven/Cooktop, Garbage Disposal, Water Softener, Ceiling Fans, Whole-House Attic Fans, Dishwasher, Built-in Microwave Oven, Trash Compactor, Built-in Central Vacuum System, Motel Expenses, Washer/Dryer Package, Sump Pump, Garage Door Opener, Permits, Removal of Existing Unit. 

Optional coverage for other items may be available for additional charges.

For additional information about American Home Shield/Prestige home warranties, visit their website at www.AHSsales.com

Clients have the opportunity to purchase or negotiate a home warranty into a sales contract.  If you have questions regarding home warranties, please let me know.  ~Melissa