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What is Covered Under Home Protection Plans For Your San Diego Foreclosures and REO's?

The last thing buyers of San Diego foreclosures and REO's want to worry about after closing is what could possibly break or malfunction in their new San Diego foreclosures and REO's investment property. Since that can cover a multitude of items and systems, for peace of mind, it's a good idea to get a home protection plan. It's especially a good idea to obtain a home warranty if you're a first-time home buyer with no experience maintaining a home.

• Who Pays for the Home Warranty?

Now, whether the seller pays for the home protection plan and home warranty coverage or whether the buyer pays for it, will depend on your local customs. It varies. In many locales, it's normal for a seller to pay for the coverage because it's a seller benefit. Why? Because then the buyer won't be calling the seller after closing if something breaks.

Many real estate agents will also give buyers a home warranty as a gift at closing.

• How Much does a Home Warranty Cost?

They are fairly inexpensive, typically ranging from $250 to $400, depending on coverage. Home warranty companies sometimes run special sales and either discount policy prices or offer additional coverage for the same price. The policies are prepaid for a year in advance, at which time they expire or can be renewed.

• How Do They Work?

Although specific plans provide for specific types of coverage, most operate the same way.

If a home system or appliance breaks or stops working, the home owner calls the home warranty company.

The home warranty company calls a provider with which it has a business arrangement.

The specific provider calls the home owner to make an appointment.

The provider fixes the problem. If an appliance is malfunctioning and cannot be repaired, depending on contract coverage, the home warranty company will pay to replace and install the appliance.

The home owner pays a small trade service fee (less than $100).

Types of Coverage

Because all plans differ, you will want to ask specifically what is covered. Ask your real estate agent if upgrades are available. Pay close attention to whether the home warranty company will pay for repairs to make certain types of systems or appliances compliant with new regulations.

• What If I Disagree With the Diagnosis?

Sometimes a service provider will deny a claim. (See below.) If that happens or if you are unhappy with the service provided, call your real estate agent and complain. Your real estate agent, if she has a good working relationship with the representative from the home warranty company that is covering your home, well, she can seek resolution for you. Agents all over the country are going to be very upset at this suggestion, but it works. If my client calls me with a problem, I call my rep, and she eventually finds a way to work out a solution acceptable to all the parties involved.

In short, don't take "no" for an answer! Call your real estate agent.

• What is Not Covered?

Outdoor items such as sprinklers

Faucet repairs are not covered under all plans

Not all plans pay for refrigerators, washers & dryers or garage door openers

Spa or pools, unless specific coverage requested

Permit fees

Haul aways

What Can Cause Denial of Payment?

Improper maintenance

Code violations

Unusual wear and tear

Improper installation

General Coverage

Air conditioning

Dishwashers

Doorbells

Furnace / heating

Water heater

Ductwork

Garbage disposal

Inside plumbing stoppages

Ceiling fans

Electrical systems

Range and oven

Telephone wiring

Because coverages vary from state to state and from policy to policy, ask to see a sample copy of a policy before you commit.

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