Home Protection Plans

September 18, 2013

Real Estate

Home Protection Plans

appliancesThe last thing a buyer wants to worry about is something in their new home breaking or malfunctioning.  This is why when representing a buyer I generally include a home protection plan in the offer to purchase.

What is a home protection plan?  It is a one-year home warranty or service contract which covers the repair or replacement of many of the home system components and appliances that break down over time.  Most companies offer various plans and pricing options allowing you to select what is right for you.

Why should buyers include a home protection plan in their offer?  No matter how prepared you are when purchasing a new home, it can still be a stressful experience.  Part of that stress is wondering about unexpected costs and the uncertainty that comes with a new home purchase.  Home protection plans provide confidence that the major appliances and home system components will not be something you need to worry about.  Generally after paying a small deductible the cost of the repair or replacement is covered.  Even if the seller does not agree to pay the one-time premium (in my experience they often agree), it is well worth the cost since most premiums I have seen are less than the average cost of a service call/repair if you did not have a protection plan.   Home protection policies are fairly inexpensive, typically ranging from $300 to $500, depending on coverage.

Why should a seller include a home protection plan?  A home protection plan can be an effective marketing tool, instantly giving buyers additional confidence in their purchase. This will also protect your home’s systems and appliances while your home is on the market.

What is covered?  This can vary based on the policy selected.  I generally chose a combination policy which covers the following (based on the situation, add-on options include things like pool, spa, water softener, well pump, septic pumping):


  • Refrigerators
  • Dishwashers
  • Clothes Dryers
  • Clothes Washers
  • Ranges/Ovens/Cooktops
  • Built-In Microwave Ovens
  • Free-standing Ice Makers
  • Trash Compactors
  • Garage Door Openers


  • Air Conditioning, including ductwork
  • Heating, including ductwork
  • Electrical
  • Plumbing
  • Water Heaters
  • Garbage Disposals
  • Instant Hot/Cold Water Dispensers
  • Central Vacuums
  • Smoke Detectors
  • Doorbells
  • Ceiling Fans

In summary, whether buying or selling ask your real estate agent about a home protection policy.

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