Home Warranties- Are They Worth It?

During the escrow process, I always recommend to my clients that they get ahome warranty, even if the seller refuses to pay for it.  I have found they more than pay for themselves.  In a recent case, one of my clients discovered their double oven malfunctioned shortly after close of escrow.  We called the warranty company and they sent one of their certified repairmen, but they could not fix it due to the fact the needed part was no longer available.  We were stressed over the situation, but the company quickly informed us they would replace the entire oven, which costs over $2,000!  This was a big surprise to me they would actually replace the oven since the required part was no longer being manufactured.  In several other cases, many issues with plumbing leaks, HVAC and electrical problems have been taken care of by home warranties for my clients.  Home warranties usually start at around $385 per year and then go up from there depending on what options you add, such as refrigerator, washer & dryer, etc.  They also charge a $65 service call fee any time you need something done.  However, considering today’s costs for labor and parts, they usually pay for themselves over the course of the year, especially if the home is over 10 years old. So don’t forget to order that home warranty during escrow, you’ll be glad you did!